EVALUATION OF RECRUITMENT METHODS: A CASE STUDY OF SELECTED BANKS IN DODOMA MUNICIPALITY

ix

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY There is little dispute recently that the success or failure of most organizations lies in the competitiveness of their human resource. As such, Human Resource Management HRM! has made a transition from a state of insignificance to one of strategic importance academically and "usiness #ise $ago, 1%%&!. The current disposition of HRM is largely associated #ith the drastic expansion of "usinesses glo"ally, technological innovations and fierce competition that characterizes the environment in #hich "usinesses operate today and the 'hanaian "usiness environment is no exception to this glo"al development. 'hana, a country once characterized "y political and economic insta"ility has recently developed into one of the fastest gro#ing economies on the African continent and is gradually developing into the financial hu" of (u" (aharan Africa. The li"eralization of the "an)ing sector in *00+ #itnessed the proliferation and influx of many "an)s into the country. ,onse-uently, the "an)ing sector has significantly "een transformed and continued to improve #ith ne# regulations and guidelines see)ing to maintain sta"ility. .ith t#enty/six "an)s in operation, the sector has "ecome more efficient, innovative, competitive and profita"le. 0t is therefore a step in the right direction to vie# recruitment practices in some selected emerging and vi"rant "an)s in the country. The selected "an)s include 'uaranty Trust 1an) Agricultural 3evelopment 1an) 2imited and 1arclays 1an) 'hana 2td. The recruitment and selection process is one of the most important HRM function at those "an)s as it is the point of entry into the "an)s and also #here the "an)s recruit talents that drive their goals and interest. 'hana! 2imited,

10

To this end, "an)s must "e interested in attracting a larger pool of 4o" candidates "ecause it #ill provide them a higher chance in hiring -ualified employees. 0n lieu #ith this, many studies have "een conducted on different recruitment strategies .ayne, *00*5 .al)er, 1%%*5 6ador 1%%&. 0n order to attract more and "etter 4o" applicants, it is important for "an)s to choose a method that fit into their gro#th and expansion o"4ectives, and #hich "ear a lo#er cost of recruitment for each candidate. 0t is therefore a step in the right direction to examine the various techni-ues employed "y these "an)s in recruiting their staff to gain competitive advantage

1.2 STATEMENT OF THE PROBLEM The success of organizations in this modern "usiness environment depends on the cali"re of the manpo#er that steers the day to day affairs of the organizations. The process of recruiting and selecting all categories of employees into "oth private and pu"lic companies has "een a matter of concern to many and needs attention. 7ven though it is the #ish of every organization to attract the "est human resource in order to channel their collective effort into excellent performances, unconventional selection practices can mar any "usiness plan. 3e ,enzo et, al. 1%%8! #rote9 :Recruitment is that set of activities an organization uses to attract 4o" candidates #ho have the a"ilities and attitudes needed to help the organization achieve its o"4ectives;. The recruiting efforts thus consist of #here to search source! and ho# to notify applicants of positions methods!. 0t is an undenia"le fact that most recruitments in Tanzania lac)s credi"ility and often influence "y nepotism, "ri"ery and corruption, as #ell as the much tal) a"out #hom you )no#; culture the practice #here"y people recommend their o#n relatives and friends to "e employed "y their organizations!. ,onse-uently, s-uare pegs are put in 11

round holes, resulting in poor service delivery. The recruitment and selection procedure therefore "ecomes a formality as opposed to an o"4ective means to ensure the selection of the "est ,andidates fit for the 4o". A s i n a s t u d y d o n e " y 1edia)o *00<! h e asserted that Human Resource Management in 'hana relies heavily on assertive norms, #ith decisions "eing influenced "y personal relationships "et#een managers and employees and this intend affects the recruitment and selection procedure. Ho#ever he is -uic) to add this does not mean merit is out of the -uestion "ut rather it is in line #ith personal interest rather than organizational. Moreover, although literature in the field of recruitment and human resource management in general is a"undant, most focuses upon developed economies to the neglect of developing economies. As most developed countries are colla"orating #ith developing countries in "usiness developments there is the need to adopt a ne# dimension to the study of the field. (tudies need to factor in the perspective of other economies, especially those in Africa since others in Asia and 2atin America have "een given ample attention. Through the study of recruitment practices in the selected "an)s, the research aims not to only fill the dearth of literature found in these areas "ut also create inroads for understanding the African management perspective. 1esides, the high staff retention and profita"ility of the chosen "an)s provide sufficient 4ustification for examining the recruitment practices of their HR departments.

1*

1.3 RESEARCH OBJECTIVES The general o"4ective of the study is to examine the various recruitment methods in the "an)ing industries=sector in Tanzania.

The specific o"4ectives of the study are as follo#s9 1. To identify recruitment activities of the "an)s understudy *. To evaluate the effectiveness of the recruitment methods of the selected "an)s.

+. To identify the o"stacles to effective recruitments in the "an)s. 8. To provide recommendations for improving recruitment practices in the selected "an)s

1.4 RESEARCH QUESTIONS 0n vie# of the pro"lems associated #ith recruitments in Tanzania, the research -uestions #hich this study hopes to find ans#ers include the follo#ing9/

1. .hat are the recruitment methods adopted "y the selected "an)s> *. Ho# effective are these methods> +. .hat are the o"stacles to effective recruitment in the selected "an)s> 8. Ho# can recruitment practices "e enhanced in those "an)s>

1.5 SIGNIFICANCE OF THE STUDY ?ver the years, the "an)ing industry has played a ma4or role in most economies hence the importance attached to its practices, policies and general issues that concerns it 3elany, *00+!. The "an)ing industry provides the payment services and financial products that ena"le "usinesses to gro# and expand. Thus, "y providing investment opportunities, extension of credit and ris) management, they contri"ute significantly to 1+

the gro#th of economies. 1an)ing institutions occupy a central position in Tanzania@s financial mar)et and are catalytic agents in the development process of the country. Thus any study that see)s to improve the "an)ing industry also see)s to improve the economic #ell/"eing of the country. The study is important to the "an)ing sector in particular and the Tanzanian economy as a #hole. The findings and recommendations of this study #ill provide a frame#or) for the adoption of sound recruitment practices in the "an)ing sector in Tanzania. The study #ill also "e "eneficial to the academic community and decision ma)ers #ho deal directly #ith the "an)ing sector and to ma)e meaningful proposals and suggestion to improve the "an)ing sector in Tanzania. Aurthermore the study #ill serve as a spring "oard to those #ho #ant to delve much into human resource planning and development. Ainally, the research can also serve as source of reference to other related studies.

18

CHAPTER T

LITERATURE REVIE 2.1 INTRODUCTION 0n every study a good literature revie# does not only provide )no#ledge a"out #hat has "een done in the research area "ut also strengths and #ea)nesses upon #hich one can also "uild an insightful and purposeful study. HRM is one of the #ell/ researched areas in management literature, ho#ever, the more research conducted in the field the more de"ata"le the concept "ecomes. This chapter focuses on the various studies conducted in the field of HRM, revealing necessary gaps in the literature #hich this research intends to fill. To "egin #ith the concept of HRM is explored in light of #hat it is said to "e and various constitutes and su" divisions. The literature also loo)s at HRM research in Africa and then narro#s do#n to Tanzania. 2.2 DEFINITION OF TERMS 2.2.1 RECRUITMENT Recruitment is defined as a search for and o"taining -ualified 4o" candidates in sufficient num"ers such that the organization can select the most appropriate people to fill its 4o" needs. 0t is specifically the set of activities and processes used to legally o"tain a sufficient num"er of the right people at the right place and time so that the people and the organization can select each other in their o#n "est short/run and long interest (chuler and Coung"lood, 1%<D!. Recruitment and selection is the process of getting human resource into organization, department, sections and 4o"s Mc6enna and 1each, *00<! as cited "y 0ti)a *011!

2.3 THEORETICAL REVIE Aom"run, Tichy and 3evanna 1%<8! made a ma4or advance of classical organization theory a"out human resource management. Their theory spelt out )ey elements of employment system #hich included selection, appraisal, development including training! and re#ards #hich greatly determines the level of staff performance. 1B Ho#ever (toner etal, *008!

remar)ed that prior to selection, there is 4o" analysis and advertisement.

,ole 1%%+!

argued that selection is the process of getting the "est of the competitors to ensure that the "est candidate s! are employed. This process is accomplished "y an intervie#

#hich is a controlled conversation "et#een applicant for a 4o" and the employer Maici"i *00+!. After recruitment and selection of the "est person for the 4o", induction is the

next ma4or human resource activity. The nature of facilitation and appraisal system used are all crucial to the performance of staff if properly aligned #ith one another.

(ystems theory as in (toner *00B! also vie# the organization as a unified, purposeful system composed of interrelated parts. extensively #ith one another. A system has many parts that all interact

?ften small systems can "e part of larger systems. The

activity and effectiveness of any segment of an organization affects in varying degrees the activity of every other segments. All organizations have su"/systems that ma)e up the #hole of the organization system. ?ne of these su"/systems is Human Resource

3epartment dealing #ith employment issues and therefore handles the human resource activities namely9/ recruitment and selection, induction, facilitation and appraisal of staff performance. All these activities must "e in congruence in order for the organization to achieve its goals and o"4ectives.

These theories are relevant and applica"le to the study as it highlights the critical processes in the employment system namely9/ recruitment and selection, induction, facilitation and appraisal. The researcher therefore #ill investigated on the recruitment and selection, used for staff and their effect on performance in the chosen "an)s.

2.2 DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT The study of people management has gone through different phases dating as far "ac) 1D

as Aredric) Taylor@s

1%0%! (cientific Management to 7lton Mayo@s 1%*8/1%+*!

Ha#thorne experiment giving rise to Human Relations movement through the era of Eersonnel management until the present day concept of Human Resource Management. This development has "een of interest in many studies see for example Alood et,al *00*5 (chuler and Randall, 1%%<5 $ain and (aa)shi, *00B!. 0t is ho#ever refreshing to note that each concept reflected the era and times in #hich it #as developed, and address to a large extent, pressing issues that confront the management of people at the said time #hiles utilizing previous concepts as "uilding "loc)s for ne# ones. Ho#ever, the progression from personnel management to HRM has not "een a smooth one in comparison to previous ones. 3ifferences of the t#o phases have attracted several de"ates and still cause disagreement in management literature Terpstra, 1%%D5 (andra *00%!. 0nitially, Human Resource Management developed as a F( management concept #hich lays emphasis on the individual #or)er and the need to treat people as assets rather than cost Erasad, 1%&% and Halcro#, 1%%<!. Though #idely accepted as the ne# management practice, the concept remains undefined as it is applied in different #ays. Hammersa) *00*! identifies three main approaches to HRM9 Airstly, HRM as a ne# title for personnel management, pointing that organisations rename their personnel department #ithout necessarily changing practices, secondly, HRM as a #ay of re conceptualizing and re organizing personnel roles and descri"ing the #or) of personnel department, and thirdly HRM as a totally ne# approach for management #ith a distinctiveness #hich lies in the integration of human resource into strategic management and the emphasis on full and positive utilization of these resources. HRM is therefore defined as9

1&

:A set of policies designed to maximize organisational integration, employee commitment, flexi"ility and -uality of #or). .ithin this model, collective industrial relations have at "est only a minor role; Hammersa) *00*!. Hammersa) *00*! definition "rings out the individualistic and unitarist nature of HRM. Hilltrop at, el 1%%8! seminal #or) further highlights the unitary aspect of HRM as effective management that reaffirm employees@ commitment to the realization of company goals.

Hilltrop at,el 1%%8! therefore defines HRM as9 : A distinctive approach to employment management strategic deployment of highly committed and capa"le #or)force, using an integrated array of cultural, structural and personnel techni-ue; Hammersa) *00*! Hilltrop at.el #hich see)s to achieve competitive advantage through the

1%%8! ho#ever, divert from the optimistic vie# formerly stated "y Hammersa) *00*! arguing that HRM policies are adapted mainly to drive managements interest, the #ell" eing of employees is only factored in, as a means to an end achieving

organizational goals and targets!. The a"ove statements also reflect "oth hard and soft aspects of HRM as prescri"ed in the Michigan and Harvard models respectively 6hatri *000!, ho#ever ta)e a different stance a#ay from the hard verses soft

de"ate arguing that there is need to shift from prescriptivism to descriptive analysis of structures and strategy ma)ing processes of organization. They point out that, developing the necessary frame#or) for understanding these structures and strategies are essential underpinnings of HRM. (#anepoel et al. *000! in their hologram discourse dissolves the various conflicting vie#s of HRM "y presenting the concept as a :complex holistic process; and to gain deeper understanding one has to factor in the different forms it

1<

ta)es 4ust li)e a hologram.

Terpstra 1%%D! gives an all inclusive sum up of the various vie#s of HRM as9 :A strategic and coherent approach to the management of an organization@s most valued assets9 the people #or)ing there #ho individually and collectively contri"ute to the achievement of its o"4ective.; Apart from the unitarist vie# of HRM expressed in the previous paragraph, another central feature of HRM is the decentralization of responsi"ility to line managers. The general vie# is that line managers are essential for the effectiveness of HRM practices regardless of the type of or version of the concept in -uestion. Huang 1%%%! reaffirms this point adding that line management play a more significant function in the implementation and drive of HRM. Thus, the function of line

managers does not only focus on purely technical responsi"ilities "ut also play a role in enhancing the human aspect of HRM. Arom the various vie#s presented, HRM can then "e la"elled as a strategic approach #hich is comprehensive and coherent, stresses on commitment, the need to treat human resource as assets, a unitarist approach and finally one #hich factors in line management responsi"ility in the performance and delivery of HRM. 1ased on the different interpretations given to HRM, the study see)s not to add to the de"ate "ut rather present an empirical evidence of ho# the concept is perceived and practiced in the 'hanaian "an)ing sector.

2.3 THE HRM PRACTICE There is no agreement on #hat constitutes HRM practices let alone a prescri"ed set of them 3elany, *00+!. Researchers have over the years proposed countless varied lists of practices ho#ever5 there is no agreement on #hat or #hich practice -ualifies as an 1%

aspect of HRM (#anepoel at el.*000!. 0t is interesting to note that there are still some practices that form the core of the various practices proposed. These include recruitment and selection, training and development, performance management and re#ard scheme, ho#ever, others such as 4o" design and employee involvement are more sporadic and are yet to gain grounds in the HRM literature. Huang 1%%0! ho#ever puts for#ard seven practices namely, selection, training, appraisal, re#ards, 4o" design, involvement and status and security. Ho#ever, the study focuses on six out of the seven practices in its analysis. (election of the practices for study is "ased on its recurrence in the literature revie#ed, its significance and measura"ility. The follo#ing is a list of the practices and definitions in relation to this study.

2.4 RECRUITMENT DEFINED The #ord Grecruitment@ has many meaning and plays an important role. 7mployees leave the organization in search of greener pastures/ some retire some die in saddle. The most important thing is that enterprise gro#s, diversifies, and ta)es over other units/all necessitating hiring of ne# men and #omen. 0n fact recruitment functions stop only #hen the organization ceases to exist. According to 7d#in 1%<8!, recruitment is the process of searching the candidates for employment and stimulating them to apply for 4o"s in the organization. Recruitment is the activity that lin)s the employers and the 4o" see)ers. 1ased on the definition provided "y 7d#in 1. Alippo, recruitment can "e seen as the process of finding and attracting capa"le applicants for employment. The process "egins #hen ne# recruits are sought and ends #hen their application are su"mitted. The result is a pool of applicants from #hich ne# employees are selected. The general purpose of recruitment is to provide a pool of potentially -ualified 4o" candidates. ,handan, 1%<&! has outlined six importance of recruitment as follo#s5 *0

1. 3etermine the present and future re-uirement of the organization in con4unction #ith its personnel planning and 4o" analysis activities5 *. 0ncrease the 4o" pool of 4o" candidates at minimum cost5 +. Help increase the success rate of the selection process "y reducing the num"er of visi"ly under -ualified 4o" applications5 8. Help reduce the pro"a"ility that 4o" applicants, once recruited selected, #ill leave the organization only after a short period of time5 B. Meet the organizations legal and social o"ligation regarding the composition of its #or)force5 D. 7valuate the effectiveness of various recruiting techni-ue and sources for all types of 4o" applicants.

2.5 RECRUITMENT AND JOB ANALYSIS There are a num"er of resources that contri"ute to#ards the success of any organization, such as manpo#er, money, machine, material, information, idea, and other inputs. .hile these resources are important, the human factor is the most significant one "ecause it is the people #ho have to coordinate and use all other resources ,handan, 1%<&!. Recruitment is an integral part of human resource, and involves the process of identifying and attracting or encouraging potential applicants #ith needed s)ills to fill vacant positions in an organization Eeretomode and Eeretomode *001!, matching them #ith specific and suita"le 4o"s, and assigning them to these 4o"s ,handan, 1%<&!. $o" analysis, #hich is the study of #hat is to "e done, #here, ho#, #hy, and "y #hom in current and predicted 4o", "egins the recruitment process Mc/ ,ormic), 1%&D!. This analysis involves compiling a detailed description of tas)s, determining the *1

relationship of the 4o" to technology and to other 4o"s and examining the )no#ledge, -ualifications or employment standards and re-uirements $ain and (aa)shi, *00B!. A $o" analysis does t#o things $ones at el, *000!. Airst, it tells the recruiter a"out the 4o" itself "y specifying the essential tas)s, duties, and responsi"ilities involved in performing the 4o". This is called 4o" description 1rannic) at el, 1%%*!. (econd, it descri"es the s)ills, )no#ledge, a"ilities and other personal characteristics needed to perform the 4o". This is called 4o" specification Alood at el *00*!. $o" analysis provides essential information for recruitment 1rannic) et al., 1%%*!, and a thorough 4o" analysis helps in the placement decision of an organization "y specifying the re-uirements of a 4o" and the a"ilities of the person to meet these re-uirements so that specific 4o"s are assigned to those people #ho #ill "e most productive. After the 4o" analysis process, the recruiter sources potential applicants "y creating a#areness for the existence of vacancies in order to attract the right )ind of people to "e recruited from the right places and time.

2.! INTERNAL AND E"TERNAL SOURCES OF RECRUITMENTS There are "asically t#o sources of recruitment #here applicants can "e dra#n into any organization. These sources are classified as either internal or external. To #hat extent these sources #ill "e used depends upon the specific environment of organization as #ell as its philosophy of operations. .hen using internal sources of recruitment, the organization turns to existing employees to fill open positions. The employees recruited internally are either see)ing lateral moves 4o" changes that entail no ma4or changes in responsi"ility or authority levels li)e transfers!, or promotions $ones et al., *000!. 0nternal sources of recruitment are not expensive and are less time consuming, compared to external sources. Another merit of internal sourcing is that the employees are already familiar #ith the system, and the organization also has information a"out **

their s)ills, a"ilities and actual "ehavior on the 4o". 0nternal sourcing "oosts morale and motivation of employees. 3espite the internal sources of recruitment, many organizations still rely on external sources. Reasons may "e that there is limited pool of candidates internally and the system may not have suita"le internal candidates. .hen recruitment is conducted externally, the organization loo)s outside for potential applicants. 7xternal recruitment is li)ely to "e used especially for lo#er entry 4o"s in periods of expansion, and for positions #hose specific re-uirements cannot "e met "y present employees #ithin the organization. There are multiple means through #hich an organization can recruit externally, such as advertisements in electronic including internet! and print media, private and pu"lic employment agencies Erasad, 1%&%!, #al)/ins "y 4o" hunters $ones et al., *000!, employee referrals Halcro#, 1%<<!, academic institutions 2indguist and 7ndicott, 1%<D!, professional associations, unions net#or)s $ones et al *000!. 7xternal sourcing has "oth advantages and disadvantages. Advantages include having access to a potentially large applicant pool, "eing a"le to attract people to an organization #ho have the s)ills, )no#ledge, and a"ilities the organization needs to achieve its goals, and, "eing a"le to "ring in ne#comers #ho may contri"ute fresh ideas to solving pro"lems and #ho may "e up/to/date on the latest technology. The disadvantages include high costs of recruitment and training, lac) of )no#ledge a"out the inner #or)ings of the organization, and uncertainty a"out the performance of the potential employees. Recruiting -ualified and competent #or)ers may "e very difficult for some organizations "ecause of some environmental constraints. (ome Terpstra, 1%%D! and informal

organizations have unattractive #or)places, have policies that demand promotions from #ithin, operate under union regulations, or offer lo# #ages, #hich ma)es recruitment exercise and )eeping employees difficult Hic)els et al., 1%%%!. Ho#ever, *+

the degree of complexity of recruitment is minimized "y formulation of sound human resource policies after careful analysis of the strengths and #ea)nesses of the environment.

2.# RECRUITMENT METHODS Halcro# A 1%<<! compiled the most popular recruitments methods #hich

organizations use to attract potential 4o" see)ers for employment as follo#s9

*8

1. J$% A&'()*+,(-(.*5 A #ay of communicating the employment needs #ithin the firm to the pu"lic through media such as radio, ne#spaper, television, industry pu"lications, and the 0nternet. (ometimes, organizations can perform the recruitment function through "lind advertisements. 0n "lind advertisements no identification a"out the company is provided to applicants. ,ompanies can use "lind

advertisements for many reasons e.g. ,ompany #ants to )eep the recruitment in lo# profile so that lesser num"er of applicants should apply in order to discourage the irrelevant people. 0t can also "e due to "ad reputation or image of the organization 2. E-/0$1-(.* A2(.3+(,: An organization that helps firms recruits employees and, at the same time, aids individuals in their attempt to locate 4o"s. There are t#o types of the employment agencies i.e. Eu"lic 7mployment Agencies and Erivate 7mployment Agencies. 1oth of these sources provide coordination "et#een the organizations and applicants #ho are searching for 4o"s, they charge fees for their services. 7mployment agencies are a"le to tailor their services to the specific needs of the clients Aor example some agencies specialize in a particular employment areas, such as engineering, human resource or ,omputer programming 3. I.*().,4+/: A special form of recruiting that involves placing a student in a temporary 4o". There is no o"ligation on the part of the company to permanently hire the student and no o"ligation on the part of the student to accept a permanent position #ith the firm. Hiring college students to #or) as student interns is typically vie#ed as training activity rather than as a recruiting activity. Ho#ever, organizations that sponsor internship programs have found that such programs represent an excellent means of recruiting outstanding employees.

*B

8. O.0+.( R(3)5+*-(.*9 ?rganizations can also use #e" sites and internet sources to recruit people, conduct application su"mission test and intervie#s and other recruitment activities. 5. U.,$0+3+*(& A//0+36.*,9 Many 4o" see)ers visit the offices of #ell/)no#n

companies on their o#n to loo) for 4o". (uch callers can help in creating the talent pool or the data"ase of the pro"a"le candidates for the organization. !. E-/0$1(( R(7())60: Many organizations have structured system #here the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office "earers of trade unions are often a#are of the suita"ility of candidates. Management can in-uire these leaders for suita"le 4o"s. 0n some organizations these are formal agreements to give priority in recruitment to the candidates recommended "y the trade union. #. E&536*+$.60 I.,*+*5*(,: Iarious management institutes, engineering colleges, medical ,olleges etc. are a good source of recruiting #ell -ualified executives, engineers, medical staff etc. They provide facilities for campus intervie#s and placements. This source is also called campus recruitment.

2.8 THE RECRUITMENT PROCESS (uccessful recruitment involves several processes. (chuler and Randall 1%<<!

identified seven processes #hich must "e follo#ed "y organizations to achieve success. These processes are9 1. 3evelopment of a policy on recruitment and retention. *. Heeds assessment to determine the current and future human resource re-uirements of the organization. 0f the activity is to "e effective, the human *D

resource re-uirements for each 4o" category and functional division=unit of the organization must "e assessed and a priority assigned +. 0dentification, #ithin and outside the organization, of the potential human resource pool and the li)ely competition for the )no#ledge and s)ills resident #ithin it. 8. $o" analysis and 4o" evaluation to identify the individual aspects of each 4o" and calculate its relative #orth. B. Assessment of -ualifications profiles, dra#n from 4o" descriptions that identify responsi"ilities and re-uired s)ills, a"ilities, )no#ledge and experience. D. 3etermination of the organization@s a"ility to pay salaries and "enefits #ithin a defined period. &. 0dentification and documentation of the actual process of recruitment and selection to ensure e-uity and adherence to e-ual opportunity and other la#s.

2.9 CHALLENGES OF RECRUITMENT ?rganizational recruitments are not #ithout pro"lems. 'ro"let et al *00B! identified time and resources constraints as the ma4or set"ac)s to effective recruitment. They contend that recruitment is "ecoming expensive and time consuming these days and advises organizations to put in place mechanisms to monitor and control cost. .riting on a similar topic, '"erev"ie *00<!, argues that the greatest challenges organizations face during recruitment relates to ho# to find and recruit the "est candidates. Ainding the "est possi"le candidates is "ecoming elusive for many organizations "ecause of s)ills shortage in the la"our mar)et. 1esides the difficulties in getting good candidates, organizations are also faced #ith the pro"lem of retention. Another pro"lem relates to the challenges posed "y glo"alization and the *&

gro#ing

*<

sophistication of recruitment $i)e, *00+!. The traditional recruitment methods are proving to "e less ade-uate5 organizations are "eing pushed to explore for ne# #ays of attracting competent people. Ainally, external interference (andra, *00%!, poor planning Aya4i, *001! and "ad recruiter attitude Amadasu, *00+! are other challenges that organizations need to overcome in order to achieve recruitment targets.

2.1: ALTERNATIVES TO RECRUITMENT The myriad of pro"lems associated #ith recruitment has led some critics to proposed alternative #ays of meeting the staffing needs of organizations. (ome of the options in this regard may "e listed thus9 O'()*+-(: (hort term fluctuations in #or) volume could "est "e solved through overtime. The employer "enefits "ecause the costs of recruitment, selection and training could "e avoided and the employee in the form of higher pay. S5%3$.*)63*+.2: To meet a sudden increase in demand for its products and services, the company may sometimes go for su"contracting J instead of expanding capacities immediately. 7xpansion "ecomes a reality only #hen the firm experiences increased demand for its product for a specified period of time. Mean#hile the firm can meet increased demand "y allo#ing an outside specialists agency to underta)en part of the #or), to mutual advantage O5*,$5)3+.2: Any activity in #hich a firm lac)s expertise and re-uires on un"iased opinion can "e outsourced. Many "usinesses have started loo)ing at outsourcing activities relating to recruitment training, payroll, processing, surveys, "enchmar) studies, statutory compliance etc more closely "ecause they do not have the time or expertise to deal #ith the situation. HR heads are no longer )eeping activities li)e resume *%

management and

+0

candidates

sourcing their daily scrutiny.

This function

is more commonly

outsourced #hen firms are in seasonal "usiness and have cyclical stuffing needs.

2.11 RECRUITMENT IN GHANA This is largely influenced "y the 'hanaian :#hom you )no#; culture the practice #here"y people recommend their o#n relatives and friends to "e employed "y their organizations!. The recruitment and selection procedure therefore "ecomes a formality as opposed to an o"4ective means to ensure the selection of the "est candidates fit for the 4o". 1edia)o *00<! asserts that HRM in 'hana relies heavily on assertive norms, #ith decisions "eing influenced "y personal relationships "et#een managers and employees and this intend affects the recruitment and selection procedure. Ho#ever he is -uic) to add this does not mean merit is out of the -uestion "ut rather it is in line #ith personal interest rather than organisational. The criteria normally used in recruitment and selection include5 intervie#s, use of curriculum vitae, and recently #ritten and oral examinations set "y the company, #hich is more academic in nature than the general assessment offered in psychometric testing. 6hatri *000! reported that the cho)ed 4o" mar)et in 'hana favours the employer rather than the employee, #ith most applicants forced to ta)e desperate measures to secure 4o"s, the employer has a large pool of applicants to select from on their terms of condition.

2.12 STRATEGIES FOR SUCCESSFUL RECRUITMENT Recruitment and selection is not only a"out choosing the most suita"le candidate. The recruitment and selection experience can also impact on the li)elihood that a candidate #ill accept a 4o" offer and on their commitment to remaining #ith the

+1

organization. (andra,

*00<! ,ommitting

time

and

resources

to

develop

comprehensive recruitment

+*

strategy is a #orth#hile investment. Eoor recruitment choices i.e., poor person/4o" fit! can have a range of undesira"le conse-uences for the organisation and the #or)er including9 Higher rates of turnover, reduced performance effectiveness, lo#ered 4o" satisfaction and reduced #or) motivation.

2.13 JOB DESCRIPTION A clear, accurate and up/to/date 4o" description is crucial to ensuring a good person/ 4o" fit. According to Hic)els at el 1%%%! it is #orth#hile spending some time ma)ing sure that the 4o" description matches the everyday reality of the 4o". A 4o" description contains t#o types of information9 (pecific tas)s and activities re-uired for a particular 4o" e.g., conduct counselling sessions, #rite client reports and the )no#ledge, s)ills and a"ilities re-uired for effective performance "y the 4o" incum"ent e.g., good communication s)ills, capacity to esta"lish good client rapport ! The accuracy of a 4o" description is li)ely to "e improved "y gathering information from different sources. 3ifferent perspectives on the )no#ledge, s)ills, responsi"ilities, challenges and demands of a position are li)ely to "e provided "y supervisors and #or)ers in the same or similar roles. 0t may also "e useful to consider #hether the organization is #illing to ta)e on less experienced #or)ers and provide professional development activities in/house or external! to "uild up their )no#ledge and s)ills.

++

2.14 DEVELOPMENT STRATEGY

OF

EFFECTIVE

RECRUITMENT

T#o important issues to consider #hen developing a recruitment strategy are 1! The source of recruitment i.e., advertisements, personal referrals, employment agencies, direct applications *! The recruiter i.e., the :personal face; of the organisation!. A range of strategies e.g., ne#spaper advertisements, personal net#or)s! can "e used to recruit ne# #or)ers. There is evidence that hiring ne# staff through referrals from existing staff or direct unsolicited! applications is li)ely to result in lo#er turnover rates and higher 4o" satisfaction compared to more traditional avenues of recruiting e.g., ne#spaper advertisements!. A range of people #ithin an organisation may "e called upon to act as recruiters i.e., to ans#er telephone en-uiries, conduct intervie#s, etc.!. A recruiter can have a significant impact on 4o" applicants, particularly their interest in a position and their intention to accept a 4o" offer. .ayne, *00*!. The supervisor for the position and co#or)ers are li)ely to "e the most effective recruiters as they #ill "e vie#ed as trust#orthy and credi"le sources of information a"out a position and the organisation. There is also evidence to indicate that friendly and informative recruiters are associated #ith firmer intentions to accept 4o" offers. An experienced recruiter #ho is familiar #ith the organisation can also "e an important source of realistic and accurate information for candidates i.e., providing a realistic 4o" previe#!.

7mphasising the positive aspects of a position is important in order to attract desired candidates. Ho#ever, an unrealistically optimistic 4o" description may create pro"lems in the longer term if a ne# employee@s expectations are not met (andra, *00%!

+8

2.15 JOB INTERVIE 0n order to o"tain the "est person/4o" fit i.e., matching the right person for the right 4o"!, a structured intervie# format is recommended .ayne, *00*!. A structured intervie# involves as)ing each candidate the same set of -uestions and assessing their responses on the "asis of pre/determined criteria. The -uestions and assessment criteria are "ased on an accurate, updated 4o" description. The most common types of structured intervie# -uestions are situational and experience/ "ased. A realistic 4o" previe# involves providing candidates #ith an accurate and complete representation of the tas)s and responsi"ilities of the 4o". 0t presents the pros and cons of the 4o" to potential candidates. .ayne! Realistic 4o" previe#s may contain information such as9 1. A description of a typical day on the 4o" *. Aspects of the 4o" that have "een re#arding for others +. Aspects of the 4o" that have "een difficult for others

8. ?pportunities for advancement and professional development B. Remuneration and "enefits D. Fni-ue re-uirements9 travel, physical demands, shift #or), overtime &. Eroviding a realistic previe# is li)ely to have a range of "enefits including9

+B

2.1! EVALUATION OF RECRUITMENT METHODS Eeriodically evaluating the effectiveness of your recruitment strategy, such as the type of sources used for recruiting, can "e a useful activity (#anepoel at el, *000!. Aor instance, a cost/"enefit analysis can "e done in terms of the num"er of applicants referred, intervie#ed, selected, and hired. ,omparing the effectiveness of applicants hired from various sources in terms of 4o" performance and a"senteeism is also helpful. ?ne could also examine the retention rates of #or)ers #ho #ere hired from different sources.

2.1# ORIENTATION OF NE

STAFF

An effective induction helps ne# #or)ers understand their role and #here they :fit; #ithin the organisation. 0t also e-uips them #ith the tools they need to perform their #or) role. A comprehensive induction process can "enefit #or)ers@ performance and retention. According to Eeretomade at el, *001! induction should "e treated as an ongoing process to support ne# #or)ers over the first fe# months of their position. ?rganizing a mentoring or :"uddy; system is a good strategy to ensure a comprehensive induction. T#o useful induction tools are9 0nduction manual = )it and Mentoring program or :"uddy; system

+D

CHAPTER THREE RESEARCH PROFILE METHODOLOGY AND ORGANI;ATIONAL

3.1 INTRODUCTION This section loo)s at the research design, data sources, target population, sampling procedure and the data collection methods used for data gathering. A "rief over vie# of the "an)s understudy #ould also "e considered in this section.

3.2 RESEARCH DESIGN Research design is the logical frame#or) upon #hich the research pro4ect is conducted and ena"les the researcher to gather evidence to address the research -uestion. 0t provides the glue to hold the research pro4ect together dealing #ith the -uestions to study, #hat data are relevant, #hat data to collect and ho# to analyze the results. This study #as designed as a case study #hich involved a detailed examination of recruitment methods utilize "y selected "an)s in Tamale to satisfy their human resource needs. The -uestions raised in the research #ere ans#ered through the collection and analysis of data from the field.

3.3 DATA SOURCES This research study dre# its data from t#o main sources5 primary and secondary data sources. The primary data sources refer to data collected and analyzed "y the researcher from the field. The main primary data for the study #ere the responses o"tained from respondents through -uestionnaires. +&

The secondary data refers to the existing data that may "e appropriate to the topic understudy. The secondary data for this study #as o"tained from internal pu"lications on employment and recruitments of the selected "an)s, HRM and financial sector industry reports, ne#s papers, magazines, 4ournals, scholarly "oo)s, and information from the internet or .orld .ide .e". The data o"tained from these sources #ere scrutinized for suita"ility, relia"ility, ade-uacy and accuracy.

3.4 TARGET POPULATION A population can "e defined as including all people or items #ith the characteristics that the researcher #ishes to study. The individual units or mem"ers #ithin a population are defined "y the research -uestion. Target population is the population to #hich the researcher #ould li)e to generalize his or her results. The target population for this study #as the employees of the selected financial institutions under investigation. The staff strength of the three "an)s operating in the Tamale Metropolis currently stood at eighty <0!.The mem"ers of the target

population had similar characteristics and therefore capa"le of producing responses that #ere of interest to the researcher.

3.5 SAMPLING PROCEDURE A sample is concern #ith the selection of a num"er of cases or mem"ers from #ithin the population to estimate characteristics of the #hole population. This "ecomes necessary "ecause the entire population cannot "e studied due to the size, time constraints, cost and inaccessi"ility. This study had a population size of eighty people and this large size made it impossi"le for the researcher to test every individual mem"er in the population. Aor this reason, +<

+%

sample size of forty respondents representing fifty percent of the population #as chosen for the survey. They #ere sampled using purposive and accidental sampling techni-ues. The purposive sampling #as used to select respondents #ho have certain -ualities and )no#ledge of the recruitment practices of the "an)s, thus "ase on the selection of )ey informants. This techni-ue is used "ecause of the criteria of choice as a function of the )no#ledge and expertise of the respondents in relation to the suita"ility of the study. The accidental sampling #as used "ased on those people #ho per/adventure came into contact #ith the researcher at the "an)s@ vicinity.

3.! DATA COLLECTION INSTRUMENTS 3ata collection instruments are the tools that the researcher uses to collect data from the field to provide ans#ers to the -uestions raised in the research pro4ect. The data collection instrument used in this study #as -uestionnaires. This consisted of the closed and open ended type of -uestionnaires. The researcher used -uestionnaire "ecause of its suita"ility to the research topic understudy. 0n addition it is relatively simple to administer, easy to analyze and a"ove all capa"le of producing responses that are suita"le for data analysis.

3.# DATA ANALYSIS TECHNIQUE 3ata collected from the field #ere processed and collated in a meaningful #ay for easy comprehension. The ra# data #ere thoroughly edited and cleaned to remove inconsistencies and errors. After editing to remove mista)es, the data #ere coded to facilitate enumeration and addition. The coding ena"led the researcher to group responses into limited num"er of categories for easy analysis. The coding process #as 80

follo#ed "y

81

ta"ulation. .ith the aid of (E((, the final data #as presented in charts and diagrams format. 3.8 OVERVIE OF SELECTED BANKS.

3.9. AGRICULTURAL DEVELOPMENT BANK Agricultural 3evelopment 1an) of 'hana, commonly 3evelopment 1an) or A31, is a )no#n as Agricultural development and

government/o#ned

commercial "an) in 'hana Agricultural 3evelopment 1an) *0011!. The "an) is the first development finance institution esta"lished "y the 'overnment of 'hana. As of (eptem"er *010, the "an) is one of t#enty six *D! licensed commercial "an)s in 'hana A31 #as esta"lished in 1%DB, "y Act of Earliament to meet the "an)ing needs of the 'hanaian agricultural sector in a profita"le manner. 1efore its current name, the "an) #as )no#n as the Agricultural ,redit and ,o/operative 1an). The "an) changed its name in 1%&0, #hen the parliamentary statute #as amended to grant the institution full commercial "an)ing po#ers Agricultural 3evelopment 1an) *011!. The 1an) maintains a net#or) of fifty B0! "ranches located in all areas of 'hana. There are also an additional four 8! Aarm 2oan ?ffices and ten ten! Agency ?ffices. This adds up to a total of sixty/four D8! service outlets, in addition to the "an)Ks head-uarters in Accra, 'hanaKs capital and largest city Agricultural 3evelopment 1an) *011!. 0n terms of expansion, the "an) opened 1* ne# "ranches last year and planned to open additional 11 more "efore the end of *011. 0n line #ith its "ranch net#or) o"4ectives, A31 planned to recruit *00 staff "y end of year Agricultural 3evelopment 1an) *011!. A31 opened its first "ranch in Tamale in 1%%B and this has since increased to t#o. The t#o "ranches namely the Tamale Main and A"oa"o 1ranches, has a com"ined total of 8*

+B #or)ers #ith over seven thousand customers. The "an) is the preferred place for not only

8+

farmers and agri/"usiness, "ut also small to medium scale "usinesses in and around the metropolis. 3.9 BRCLAYS BANK GHANA LIMITED 1arclays has operated in 'hana for over <0 years and has "een closely associated #ith all phases of the countryKs development. 1arclays 1an) no# have a ma4or commercial "an)ing net#or) in the country #ith "ranches in all large commercial centres. 0ts vision is to "ecome the "est "an) for every customer, in every "ranch, for every product and every time 1arclays 1an) *011!. 1arclays 1an) of 'hana 2imited has an expansive retail and commercial "an)ing net#or) in the country #ith %* "ranches and and over 1+0 ATMs in all regional capitals and ma4or to#ns. 0ts products and services are targeted particularly at the "usiness and corporate, as #ell as retail customers 1arclays 1an) *011!. 1arclays offers a #ide range of commercial, Retail and Treasury products and services. 0t also offers local "usiness "an)ing product and services for (mall Medium 7nterprises and indigenous "usinesses The "an) opened its doors for "usiness in Tamale in 1%<B #ith its first ever "ranch in the north. The "an) opened its second "ranch in *010 to focus mainly on its prestige customers and to render #orld class "an)ing to inha"itants of Tamale. 0n all the t#o "ranches have a total of +0 #or)ers consisting of permanent and contract staff 1arclays 'hana *011!.

88

3.1:

GUARANTY TRUST BANK GHANA LIMITED

'uaranty Trust 1an) 'hana! 2imited #as registered in 'hana in ?cto"er *008 and o"tained its universal "an)ing license from the 1an) of 'hana on *+rd Ae"ruary, *00D, there"y paving the #ay for the commencement of operations The 1an) is a su"sidiary of 'uaranty Trust 1an) Elc, one of the foremost "an)s in Higeria #ith a Triple A rating5 the first indigenously o#ned su"/(aharan "an) to "e -uoted on the 2ondon (toc) 7xchange. 0n *00<, it "ecame the first ne# generation indigenous African "an) to o"tain a "an)ing license to carry out fully fledged commercial "an)ing activities in the Fnited 6ingdom. The 1an) is "uilt on the strengths of its staff, its structures, policies and procedures. A"out %%.%L of the "an)@s total staff strength of 8%0 people are 'hanaians, reflecting the "an)@s preparedness to invest and develop the country@s 1an) human capital 'uaranty Trust

*011!. 0n *010, the 1an) #on the highly coveted 1an) of the Cear

*00% A#ard in 'hana together #ith eight other ma4or category A#ards 'uaranty Trust 1an) *011! The "an) "egan operation in Tamale on 1 March, *011 #ith a total of 1+ staff. The Tamale "ranch is '"an)@s *< operations.
th st

"ranch and licensed to conduct universal "an)ing

8B

CHAPTER FOUR ANALYSIS< DISCUSSION AND PRESENTATION OF RESULTS 4.1 INTRODUCTION 0n the previous chapter the research design and process used in this empirical study #as discussed. The results of the study are presented in this chapter. 0nformation regarding respondents@ demographic characteristics is follo#ed "y a presentation of data on recruitment activities of the selected financial institutions. 4.2 GENDER OF RESPONDENTS Aigure 8.1 reveals that the #or)force of the three financial institutions is dominated "y men5 men constitute a"out seventy percent as against thirty percent female. This confirmed previous studies that the 'hanaian "an)ing sector is male dominated area. F+25)( 4.1: Gender of Respondents
80

60

Percen t
40

20

0 Female Male

S$5)3(: R(,(6)34(), F+(0& S5)'(1 4.3 AGE OF RESPONDENTS The ta"le presented "elo# sho# the age distri"ution of respondents. Aifty percent fall #ithin the age group of *0 J *% years, thirty seven percent falls #ithin the age group of 8D

+0 J +% years and t#elve percent fall "et#een 80 to 8% years. This sho#s that half of the #or)forces of the "an)s are youthful and energetic.

Table 4.1: Respondents Age Group Frequency 20 15 5 40 Percent 50.0 3 .5 12.5 100.0 Valid Percent 50.0 3 .5 12.5 100.0

20 - 29 yrs 30 - 39 yrs 40 - 49 yrs !"tal

S$5)3(: R(,(6)34(),= F+(0& S5)'(1

4.4 ACADEMIC RESPONDENTS

QUALIFICATIONS

OF

The "ar chart "elo# depicts the academic -ualification of respondents. The data sho# that fifty percent B0L! are degree holders, t#elve and half percent 1+L! are diploma holders and thirty/seven percent are holders of professional -ualifications. F+25)( 4.2: A36&(-+3 Q560+7+36*+$. $7 *4( R(,/$.&(.*,

6 0 5 0 4 0 3 0 2 0 1 0 0

Percent

#i$l"m a

#e%re e

Pr"&essi"na l

S$5)3(: R(,(6)34(),= F+(0& S5)'(1

4.5 RESPONDENTS PLACE

ORK

The research indicates that ma4ority of the respondents are #or)ing #ith 1arclays 1an) 2td. They account for forty five percent 8BL! of the respondents. T#enty percent *0L! #or) #ith 'uaranty Trust 1an) 2td #hiles thirty five percent are employees of Agricultural 3evelopment "an) as sho#n in F+25)( 4.3 F+25)( 4.3: R(,/$.&(.*,= P063( $7
50

$)>

40

30

20

10

0 '!( ((' )#(

S$5)3(: R(,(6)34() F+(0& S5)'(1

4.! NUMBER OF YEARS SPENT

ITH CURRENT BANK

Ta"le 8.* states the num"er of years respondents spent #or)ing #ith their current employers. The data sho#ed that ma4ority of respondents have spent less than five years #ith their current employers. They represent forty five percent 8BL! of the total sample size. Thirteen percent 1+L! said they have "eing #or)ing for the past ten to fourteen years. Those #ho #or)ed for fifteen and a"ove years formed seventeen percent of the total sample. This pro"a"ly suggests that people don@t stay long #ith the

"an)s.

Table 4.2: Number of years spent with current employer Frequency Percent 18 45.0 10 25.0 5 12.5 1 .5 40 100.0 F+(0& Valid Percent 45.0 25.0 12.5 1 .5 100.0

(el"* 5 yrs 5 - 9 yrs 10 - 14 yrs 15 and a+",e yr !"tal S$5)3(: S5)'(1 R(,(6)34(),

4.# TYPE EMPLOYMENT

OF

Ta"le 8.+ depicts the employment contracts of respondents. Those on permanent employment account for fifty percent, those on contract "asis formed thirty five percent and the outsourced constitutes fifteen percent of the total sample. This sho#s that a significant num"er of the "an)s@ #or)force are either on contract or outsourced.

Table 4. : Type of !mployee Frequency 20 14 6 40 Percent 50.0 35.0 15.0 100.0 Valid Percent 50.0 35.0 15.0 100.0

Permanent -"ntract .uts"urced !"tal

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.8 RECRUITMENT NEEDS OF THE BANKS The study indicates that recruitments made "y the "an)s are usually anticipated, accounting for sixty five percent. T#enty five percent of recruitments done are planned #hiles the unexpected recruitments account for t#elve percent. The unexpected recruitments may "e as a result staff poaching and resignations. Honetheless, the data suggest that recruitment in the "an)s are foreseen and do not mostly come "y surprise.

Table 4.4: Recruitment Needs of the "elected #an$s Frquency

Valid

Planned )ntici$ated /ne0$ected !"tal

26 5 40

Percent 22.5
65.0 12.5 100.0

Valid Percent
22.5 65.0 12.5 100.0

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.9 CURRENT JOB GRADES OF RESPONDENTS Ta"le 8.B depicts the 4o" grades of respondents. The results sho# that managers@ grade account for five percent, deputy managers constitute ten percent #hiles the 1an)ing ?fficers and Assistant 1an)ing ?fficers grades account for thirty three and t#enty five percents respectively. The 7xecutive Assistant and 7xecutive Trainees grades lo#er! accounted for t#elve and fifteen percents respectively. 0t is clear from this data that ma4ority of the respondents "elong to the middle grades of 1?s and A1?s.

T6%0( 4.5: R(,/$.&(.*, J$% G)6&(

Frequency 5 6 13 10 4 2 40 Percent 12.5 15.0 32.5 25.0 10.0 5.0 100.0 Valid Percent 12.5 15.0 32.5 25.0 10.0 5.0 100.0

Valid

10ecuti,e )ssistant 10ecuti,e !rainee )ssistant (an2in% .&&icer (an2in% .&&icer #e$uty Mana%er Mana%er !"tal

S$5)3(: S5)'(1

R(,(6)34(),

F+(0&

4.1: JOB TITLES OF RESPONDENTS The survey indicates that there are more ,ashiers and Relationship ?fficers among the respondents than any other position. The t#o alone account for fifty percent B0L! of the respondents. This is normal "ecause the "an)s are in the "usiness to render service and it these ,ashiers and Relationship officers #ho must champion these activities. The rest of the results are presented in the T6%0( 4.! "elo#.

T6%0( 4.!: J$% T+*0(, $7 R(,/$.&(.*,

Frequency 10 5 4 6 10 5 40 Percent 25.0 12.5 10.0 15.0 25.0 12.5 100.0 Valid Percent 25.0 12.5 10.0 15.0 25.0 12.5 100.0

Valid

-as3ier 4n&"rmati"n .&&icer Funds !rans&er .&&icer -redit .&&icer 5elati"ns3i$ .&&icer -as3 .&&icer !"tal

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.11 NUMBER OF RECRUITMENTS DONE IN A YEAR The study sought the vie#s of respondents concerning the fre-uency at #hich recruitments for ne# employees are made in the "an)s they #or). Thirty percent of the respondents said recruitments are made once in a year, fifty percent said it is done five times and t#enty percent said it is done more than five times in a year. T6%0( 4.#: N5-%() $7 R(3)5+*-(.*, +. 6 1(6) Frequency 12 20 8 40 Percent 30.0 50.0 20.0 100.0 Valid Percent 30.0 50.0 20.0 100.0

Valid

)t least "nce Fi,e times M"re t3an &i,e times !"tal

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.12 CAUSES OF VACANCIES IN THE BANK Ta"le 8.< sho#s the reasons for the occurrence of vacancies in the selected "an)s. Half of the vacancies occur as a result of "ranch expansions. Transfers and resignations account for fifteen and seventeen and percents respectively. ?ther causes include dismissals and retirements #hich together accounts for seventeen percent 1&L! of the respondents. T6%0( 4.8: R(6,$., 7$) V636.3+(, Frequency #ismissals 5 5etirements 2 (usiness 10$ansi"n 20 5esi%nati"ns !rans&ers 6 !"tal 40 Percent 12.5 5.0 50.0 1 .5 15.0 100.0 Valid Percent 12.5 5.0 50.0 1 .5 15.0 100.0

Valid

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.13 SOURCES OF RECRUITMENT Ta"le 8.% depicts ho# the "an)s source for -ualify people to fill vacancies. The findings sho# that the "an)s recruit from t#o main sources9 internal **.BL! and external +0L! sources. Those #ho indicate "oth sources are nearly forty eight percent. This finding sho#s that ma4ority of the "an)s do not rely on one source to fill vacancies5 the t#o sources are explored to get the "est fit for the 4o".

T6%0( 4.9: S$5)3+.2 $7 /($/0( *$ 7+00 '636.3+(,

0nternally 7xternally 1oth Total

Are-uency % 1* 1% 80 F+(0&

Eercent **.B +0.0 8&.B 100.0

Ialid Eercent **.B +0.0 8&.B 100.0

S$5)3(: S5)'(1

R(,(6)34(),

4.14 FILLING VACANCIES THROUGH E"TERNAL MEANS The findings sho# that staff transfers and promotions are the most popular internal #ays of filling vacancies in the "an)s. They account for sixty five percent of the sample. Ten percent of the respondents said internal recruitments are done "y upgrading, fifteen percent said is "y demotion, and ten percent "y relatives as sho#n in Ta"le 8.10

T6%0( 4.1:: R(3)5+*+.2 7)$- ?+*4+. Frequency 15 11 4 6 4 40 F+(0& Percent 3 .5 2 .5 10.0 15.0 10.0 100.0 Valid Percent 3 .5 2 .5 10.0 15.0 10.0 100.0

Valid

!rans&ers Pr"m"ti"ns /$%radin% #em"ti"ns 5elati,es !"tal R(,(6)34(),

S$5)3(: S5)'(1

4.15 INTERNAL FACTORS INFLUENCING RECRUITMENTS Ta"le 8.11 indicates the factors that influence recruitments in the selected "an)s. 7xpansion or gro#th B*L!, cost +BL!, and the company size 1*.BL! are the main factors that influence recruitments in the "an)s. T6%0( 4.11: I.*().60 F63*$), I.705(.3+.2 R(3)5+*-(.* Are-uency 18 *1 B 80 F+(0& Eercent +B.0 B*.B 1*.B 100.0 Ialid Eercent +B.0 B*.B 1*.B 100.0

Ialid

,ost 7xpansion ,ompany (ize Total

S$5)3(: S5)'(1

R(,(6)34(),

4.1! BLIND ADVERTISEMENT 1lind advertising is #hen a company advertises vacancies #ithout disclosing its identity. This -uestion #as aimed at finding out from the respondents as to #hether the

"an)s do "lind adverts to attract prospective applicants. (ixty five percent of the respondents thin)

their "an)s do not engaged in "lind advertising #hiles thirty five percent indicate that their "an) occasionally engaged in the practice. This information implies that "lind advertising is not a #idely accepted practice in the selected "an)s.

T6%0( 4.12: B0+.& A&'()*+,+.2 Are-uency *D 18 80 Eercent DB.0 +B.0 100.0 Ialid Eercent DB.0 +B.0 100.0

Ialid

Ho Ces Total

S$5)3(: R(,(6)34(), F+(0& S5)'(1 4.1# POACHIN G Eoaching of employees from rivalry "an)s is a popular tool for recruitment in the "an)ing sector. Ta"le 8.1+ states the vie#s of respondents on the topic. As high as seventy three percent confirmed that their "an)s regularly poached staff from other "an)s. T#enty seven percent of the respondents ho#ever denied the practice. This information sho# that employee raiding is flourishing in the "an)ing not#ithstanding the ethical pro"lems the practice poses. T6%0(14.13: S*677 /$634+.2 +. *4( %6.>+.2 ,(3*$)

Ialid

Ho Ces Total

Are-uency 11 *% 80

Eercent *&.B &*.B 100.0

Ialid Eercent *&.B &*.B

100.0

S$5)3(: R(,(6)34(), F+(0& S5)'(1.

4.18 SOURCING FROM E"TERNAL SOURCES Ta"le 8.8 depicts the recruitment methods used "y the "an)s to attract -ualified people from the la"or mar)et. The study sho# that 4o" advertisements is the most popular recruitment method, accounting for nearly t#enty eight percent. This is follo#ed "y unsolicited applicants *BL!, employee referrals 1*.BL!, and educational institutes 10L!, recruitment agencies &.BL! and 4o" fairs &.BL!

F+25)( 4.4: S$5)3+.2 7)$- E@*().60 S$5)3(, $o" Aairs

.56

7ducational 0nstitut
10.06

Advertisements 7mployee Referrals

12.56 2 .56

Fnsolicited App
256

Elacement Agencies
.56

S$5)3(: S5)'(1

R(,(6)34(),

F+(0&

4.19 MEDIUM OF ADVERTISING A "an) needs to communicate 4o" openings to the outside #orld through a medium. Ho# far and #ide the 4o" announcement goes depends on the medium selected. Ta"le 8.18 sho#s the popular medium used "y the "an)s to advertise and attract 4o" see)ers. 0t is o"vious from the ta"le that ma4ority of the "an)s advertise 4o"

openings through the

national dailies B0L!, follo#ed "y the internet

company and private

#e"sites!, employee referrals 1*.BL!, private agencies 10L!, and families of employees BL!. T6%0( 4.14: M(&+5- $7 A&'()*+,(-(.* Frequency Percent 7e*s$a$ers 20 50.0 1m$l"yee 5e&errals 5 12.5 (an2 8e+site 6 15.0 Pri,ate )%encies 4 10.0 9$eciali:ed 8e+site 3 .5 Family "& 9ta&& 2 5.0 !"tal 40 100.0 R(,(6)34(), F+(0& Valid Perce nt 50.0 12.5 15.0 10.0 .5 5.0 100.0

Valid

S$5)3(: S5)'(1

4.2: SELECTION OF ADVERTISING MEDIUM Ta"le 8.1B states the reasons for selecting a particular medium to advertise vacancies in the "an)s. Thirty percent of the respondents chose #ider coverage as the reason for advertising in a particular medium. T#enty five percent *BL! of them indicated that the medium attracts the right cali"er of people and close to thirteen percent 1*.BL! of them said time saving is the main consideration. ?ther considerations include ,ost 1BL!, higher success rate 10L!, and meeting legal and social o"ligations &.BL!. Table 4.1%: Reason for a particular medium of Ad&ert Frequency Percent 12 30.0 5 12.5 10 25.0 6 15.0 3 4 40 .5 10.0 100.0 Valid Percent 30.0 12.5 25.0 15.0 .5 10.0 100.0

Valid

8ider -",era%e 9a,es !ime )ttract 5i%3t Pe"$le ;ess -"stly ;e%al and 9"cial .+li%ati"ns <i%3er 9uccess 5at e !"tal

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.21 MOST EFFECTIVE RECRUITMENT METHOD A method is 4udged as effective if it can fulfill the follo#ing conditions9 #ide coverage, lo#er cost, short lead/time, attracts the right cali"er of people, and compliance #ith regulatory re-uirements. Ta"le 8.1D sho#s that 4o" advertisement *&.BL! and recruitment agencies *&.BL! are the most effective recruitment methods. The rest are the internet 1*.BL!, educational institute 10L!, 4o" centers &.BL!, employee referral &.BL!, national service BL! and #ord of mouth *.BL!

T6%0( 4.1!: M$,* E77(3*+'( R(3)5+*-(.* M(*4$& Frequency 11 3 1 11 2 5 3 4 40 Percent 2 .5 .5 2.5 2 .5 5.0 12.5 .5 10.0 100.0 Valid Perc ent 2 .5 .5 2.5 2 .5 5.0 12.5 .5 10.0 100.0

Valid

="+ )d,ertisement ="+ -enters 8"rd "& M"ut3 5ecruitment )%ency 7ati"nal 9er,ice 8e+site 1m$l"yee 5e&errals 1ducati"nal 4nstitutes !"tal R(,(6)34(), F+(0&

S$5)3(: S5)'(1

4.22 LEAST EFFECTIVE RECRUITMENT METHODS Ta"le 8.1& sho#s the methods that are less effective. The study indicates that #ord of mouth 8BL!, 4o" centers 80L!, national service &.BL!, educational institutes BL! and 4o" posters *.BL! are the most ineffective recruitment methods.

T6%0( 4.1#: L(,, E77(3*+'( R(3)5+*-(.* M(*4$&,

Frequency 1 16 18 3 2 40 Percent 2.5 40.0 45.0 .5 5.0 100.0 Valid Percent 2.5 40.0 45.0 .5 5.0 100.0

Valid

="+ $"sters ="+ -entres 8"rd "& M"ut3 7ati"nal 9er,ice 1ducati"nal 4nstitutes !"tal

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.23 RECRUITMENT AND E"TERNAL INFLUENCES The recruitment activities of the "an)s are influenced "y the external environment. Ta"le 8.1< outlines these external factors as s)illed la"or +0L!, good #ill of the

company *BL!, competitors **.BL!, the unemployment rate 1BL! and statutory regulations &.BL!. Table 4.1': !(ternal )actors *nfluencing Recruitment Frequenc 12 10 3 9 40 Valid Perce nt 30.0 25.0 .5 22.5 15.0 100.0

Valid

92ill ;a+"ur '""d 8illl 1n,ir"nment -"m$etit"rs /nem$l"yment 5at !"tal R(,(6)34(),

30.0 25.0 .5 22.5 15.0 100.0

S$5)3(: S5)'(1

F+(0&

4.24 CHALLENGES TO EFFECTIVE RECRUITMENT Ta"le 8.1% outlines the ma4or challenges to effective recruitment in the selected "an)s. The data sho# that external interference +&.BL! and large application volumes *BL! are the "iggest o"stacles to recruitment in the "an)s. The other challenges include

lac) of

proper application trac)ing system 1BL!, multiple sourcing 1*.BL! and poor media coverage 10L!. Table 4.1+: ,hallenges of Recruitment Frequency 5 10 15 6 4 40 Percent 12.5 25.0 3 .5 15.0 10.0 100.0 Valid Perce nt 12.5 25.0 3 .5 15.0 10.0 100.0

Valid

Multi$le 9"urcin% <i%3 7um+er "& )$$licants 4nter&erence P""r a$$licati"n trac2i % P""r Media -",era%e !"tal

S$5)3(: R(,(6)34(), F+(0& S5)'(1

4.25 SUGGESTED SOLUTIONS The -uestionnaire included a fe# open/ended -uestions, #hich relates to

recommendations of improving recruitments in the selected "an)s. Ta"le 8.*0 outlines the recommendations made "y respondents. The most recommendations relates to maintaining impartiality +&.BL!, and using the internet *BL! to facilitate effective recruitment. The rest are setting goals and "udget limits 10L!, outsourcing 10L!, use of #al)/in applicants 10L! and proper application trac)ing &.BL!. T6%0( 4.2:: S522(,*(& S$05*+$., Frequency Percent /se 8al2-in )$$licant 4 10.0 4nternet /sa%e 10 25.0 1nsurin% Fairness 15 3 .5 '""d 5ec"rd >ee$in% 3 .5 .uts"urcin% 5ecruitment 4 10.0 9ettin% '"als and (ud%et 4 10.0 !"tal 40 100.0 Valid Percen t 10.0 25.0 3 .5 .5 10.0 10.0 100.0

Valid

S$5)3(: R(,(6)34(), F+(0& S5)'(1

CHAPTER FIVE SUMMARY OF FINDINGS< CONCLUSION AND RECOMMENDATIONS

5.1. INTRODUCTION This chapter present the findings of the research #or) conducted at three ma4or financial institutions operating in the Tamale metropolis, namely 1arclays 1an) 'hana 2imited, 'uaranty Trust 1an) 'hana 2imited and Agricultural 3evelopment 1an) 2imited. The study sought among other things to evaluate the recruitment methods of the target "an)s, and help identify the "est recruitment strategies that organizations can employ to ensure the existence of the "est possi"le pool of -ualified applicants from #hich they can fill vacancies as and #hen re-uired. 3ra#ing on a sample size of forty respondents and #ith the aid of -uestionnaires, significant among of data #as gathered and analyzed "y the researcher. The ma4or findings of the study are presented "elo#. 5.2 RECRUITMENT NEEDS OF THE BANKS The study revealed that the selected "an)s share similar recruitment needs #hich can "e categorized "roadly as planned, anticipated and unexpected needs. The planned needs of the "an)s arise due to changes in the organization and retirement policies. Anticipated needs are those movements in personnel, #hich the HR can predict "y studying trends in internal and external environment. The unexpected needs occur as a result of resignation, deaths, accidents, and illness of staff mem"ers. 5.3 RECRUITMENT PROCESS The recruitment process is the first step to#ards creating competitive strengths and strategic advantages for the selected "an)s. Though the process differs slightly from process "egins #ith the human resource units receiving re-uisitions for recruitment from BB

one "an) to another, they all seem to follo# similar pattern. 0n "road terms, the recruitment

process "egins #ith the human resource units receiving re-uisitions for recruitment from BD

other units of the "an)s. The re-uisition specifies the post and the num"er of persons re-uired, duties to "e performed, -ualification, among other things. 1elo# are the steps involved in the recruitment process9 1. 0dentify vacancy *. Erepare 4o" description and person specification +. Advertising the vacancy

8. Managing the response B. (hort/listing D. Arrange intervie#s &. ,onducting intervie# and decision ma)ing The recruitment process is immediately follo#ed "y the selection process i.e. the final intervie#s and the decision ma)ing, conveying the decision and the appointment formalities. 5.4 SOURCES OF RECRUITMENT The findings of this research have sho#n that all the three "an)s ma)e their recruitment from t#o ma4or sources9 internal and external sources. 0nternal recruitment involved filling vacancies from #ithin through promotions, transfers, upgrading and demotions. There are sound reasons for recruiting from sources #ithin the "an)s. 0n the first place, the a"ility of the recruit is )no#n so it is easy to assess potential for the next level. 1y contrast, assessments of external recruits are "ased on less relia"le sources, such as references, and relatively "rief encounters, such as intervie#s. (econdly, :0nsiders; )no# the organization, its strengths and #ea)nesses, its culture and, most of all, its people. Aurthermore, promotions from #ithin "uild motivation and foster a sense of commitment to the "an). ()illed and am"itious employees are more BD

li)ely to

B&

"ecome involved in developmental activities if they "elieve that these activities #ill lead to promotion. Ainally, internal recruitment is cheaper and -uic)er than advertising in various media and intervie#ing :outsiders;. Time spent in training and socialization is also reduced. Ho#ever, internal recruitment does not al#ays produce the num"er or -uality of personnel needed "y the "an)s and can also lead to infighting5 in such an instance, the "an)s rely on external sources for recruitment. The external recruiting entails searching the la"or mar)et more #idely for candidates #ith no previous connection to the "an). The methods #idely used "y the "an)s include 4o" advertisement, employment agencies, 4o" fairs, employee referrals, on/line= internet recruitment, and college recruitment.

5.5 FACTORS AFFECTING RECRUITMENT Recruitment activities of the selected "an)s are influenced "y "oth internal and external factors. The internal factors fall #ithin the control of the "an)s and these include the cost of recruitment, size of the "an), gro#th and expansion plans, and recruitment policy. The external on the other hand lies outside the control of the "an)s and they include company image or good#ill, political/social and legal environment, competitors, unemployment rate and the la"our mar)et. 5.! EVALUATION OF RECRUITMENT METHODS The study sho# that the vacancies in the "an)s are filled through different recruitment methods. The #idely used ones include the follo#ing 1. J$% A&'()*+,(-(.* The findings sho# that #hen the "an)s decide to communicate their vacancies to the pu"lic, advertising is the most popular methods used. 0n the case of 'T1, the most popular medium for advertisements is advertising in the leading ne#spapers. The B&

goal is

B<

al#ays to select a medium that is #idely circulated, #ith full national coverage and li)ely to "e read "y people #ith the re-uisite -ualification and s)ills. The 3aily 'raphic and 1MAT are the preferred choice "ecause of their #ider coverage and large audience. The main advantage of 4o" advertisement lies in its a"ility to generate large pool of applicants from #hich the "an) can select people for employment. This method has some fe# dra# "ac)s. 0t is relatively expensive and time consuming. 3espite these short/comings, 4o" advertisement remained the preferred and effective method of recruitment in the selected "an)s. (ome of the "an)s also engage in #hat is referred to as a "lind advertisement, one in #hich there is no identification of the organization. T#o of the "an)s J A31 and 11' J constantly used "lind advertisements to fill "oth upper and lo#er level positions. 0n the case of A31 and 11', applicants are as)ed to apply to a post office "ox num"er or to an employment firm that is acting as an agent for the employing "an). The 4ustifications for using "lind advertisement include the need to cut do#n the num"er of applications and also the desire not to pu"licize the fact that the "an) is see)ing to fill a high position. Ho#ever, "lind advertising has some fundamental challenges, chief among it is that many individuals are reluctant to ans#er them. (ometimes there is fear that the advertisement has "een placed "y the organization in #hich the individual is currently #or)ing. 2. E-/0$1(( R(7())60, 7mployee referral is also one of the "est sources for external recruitment used "y the selected "an)s to fill vacancies. 0t is simply a recommendation of someone from a current employee for employment. ?ften referred to as :#ord of mouth;, employee referral is an accepted practice in all the "an)s "ecause it is deemed to "e cost/ effective5 it saves advertising cost. Also, since the reputation of the recommender is B%

at sta)e the recommendation is expected to "e "ased on sound 4udgment.

D0

Though good as the intentions may "e, employee referral as a method of recruitment is open to a"use for personal rather than organizational gains. 0n 'hana, the concept of employee referral is so a"used to the extent that it is referred to as :#hom you )no#;, a practice of recommending ones family relations, classmates, tri"esmen, for employment. This implies that if you don@t :)no# someone; or :someone doesn@t )no#; you through family, religious, tri"al or political ties, you are li)ely not to "e recommended for employment, no matter ho# competent or -ualified you are. The study confirmed that the tendency to a"use the practice of employee referral for personal gains is -uite high in the selected "an)s, and that the practice of :#hom you )no#; is no longer a perception "ut a reality in 'hana. 3. E-/0$1-(.* A2(.3+(, 1esides 4o" advertisement, employment agencies are the next most important source of external recruitment for the selected "an)s. Also referred to as :head/hunters;, recruitment agencies provide the "an)s #ith details of suita"le candidates for vacancies at a fee or on commission. The nature and the needs of the "an) determine the type of employment agency to engage for staff recruitment. The study sho# that A31 mostly engaged the services of pu"lic=state recruitment agencies to recruit their staff since it is an entity o#ned "y the state. 1arclays "an) and 't"an) on the other hand prefer the services of private employment agencies and management consultants to that of pu"lic agencies. The main advantage of using employment agencies is that they can match candidates to 4o"s much faster than the "an)s can do. 0n addition, employment agencies maintains large data"ase of applicants #hich ma)es it easy for them to locate the competencies needed "y the "an)s.

D1

The limitation of this method is that activities of employment agencies cannot "e monitored to ensure strict adherence to guidelines. This can lead to some form of a"use in the process of screening and presenting applicants for employment in the "an)s. (peculations are rift that some of the recruiting agencies may "e guilty of demanding huge sums of monies from 4o" see)ers "efore offering them for employment in the "an)s. (uch speculations, though unconfirmed, give credence to the fact that employment agencies may not "e as effective as people thought. Another ma4or dra#/ "ac) of recruiting via this medium is that it is expensive. 4. E&536*+$.60 I.,*+*5*(,A C$00(2( R(3)5+*+.2 7ducational "odies are another important recruitment sources to the "an)s. 0t typically involved sending a representative of the "an) to university campuses to prescreen applicants and create an applicant pool from the graduating students of that year. This forms an important source for recruiting management trainees, entry level candidates, and professional and technical employees in to the "an)s. Fniversity of 'hana, 0nstitute of Erofessional (tudies and 6#ame H)rumah Fniversity of (cience and Technology are the top places that the "an)s do most of their recruitment of fresh graduates. ,ollege recruitment offers an opportunity for the "an)s to select the potential employees #ith the personal, technical and professional competencies they re-uire in their organization. The personal competencies identified may include a positive #or) ethic, strong interpersonal s)ills, leadership capacity and an a"ility to function #ell in a #or) team. The opportunity to discuss a student@s current strengths and potential future value to an organization cannot "e replicated in any other setting. T#o ma4or advantages of this strategy are the lo# cost and the convenience /since many candidates can "e intervie#ed in a short time in the same location #ith space and administrative D*

support provided "y the university itself.

D+

Fnfortunately, suita"le candidates "ecome availa"le only at certain times of the year, #hich may not al#ays suit the needs of the hiring "an). Another ma4or disadvantage of college recruiting is the lac) of experience and the inflated expectations of ne# graduates and the cost of hiring graduates for entry/level positions that may not re-uire a college degree. 5. U.,$0+3+*(& A//0+36.*,A 60>BI.,

The "an)s generally receive unsolicited application from 4o" see)ers at various points of time. The num"er of such applications usually depends on economic conditions in the country, the image of the "an), and the applicant@s perception of the type of 4o" that might "e availa"le. (uch applications are used to create a talent pool or data"ase and #henever a suita"le vacancy arises, the "an) #ould inform the candidate. This is perhaps the cheapest and the easiest means to recruit people to fill vacancies in the "an)s. Fnsolicited applicants are sometimes considered a nuisance to the daily #or) activities of the "an)s due to the fre-uency and sheer volumes involved. The huge volumes of applications that the "an)s receive on daily "asis are fuelled largely "y lac) of 4o"s and also the general perception that "an)s pay higher salaries than other sectors of the economy. Managing such applications "ecomes a nightmare and time/consuming to the "an)s. !. J$% F6+), The study sho#ed that the "an)s organized 4o" fairs periodically to "ring 4o" see)ers together for recruitment. The $o" fairs afford the "an)s the opportunity to exhi"it the "est their companies have to offer so that 4o" see)ers can ma)e informed choices. They are considered one of the most effective #ays for 4o" see)ers to land 4o"s. The "an)s have access to a large pool of candidates on #hich to dra#, #hile 4o" see)ers have the D8

opportunity to shop around for dozens J sometimes hundreds J of employers, all in one place. The main set"ac) of 4o" fair is that it is organized periodically and this may not coincide #ith the time that vacancies exist in the "an)s. $o" fairs are -uite difficult and expensive to organize since the usual format of 4o" fairs is to have several companies set up information des)s, #ith at least one representative of the company present to provide information. #. EB )(3)5+*-(.* The use of the internet as recruitment method is gaining grounds in the selected "an)s. The study sho#s that vacancies are advertised on the #e" either through the "an)s@ o#n #e"site or on specialized 4o" #e"sites. The #e"sites of all the three financial institutions contained lin)s inviting prospective 4o" applicants to apply for existing or yet to "e announced vacancies. $o" see)ers are also permitted to upload their curriculum vitas and applications directly to the "an)s@ applications data"ase for processing. The "enefits of e/recruitment to the "an)s are huge. Fsing the 0nternet is faster and cheaper than many traditional methods of recruiting. $o"s can "e posted on 0nternet sites at minimum cost and are availa"le t#enty/four hours a day. Erospective 4o" see)ers can vie# detailed information a"out the 4o" and the "an) and then respond electronically. (u"mitted applications and resumes are processed immediately. 0nternet recruiting is not all positive5 there are dra#"ac)s for the "an)s to ta)e note. (ome applicants still place great value on face/to/face interactions in the hiring process. (uch applicants are li)ely to ignore 4o"s posted, impersonally, on/line. (econdly, the volume of rNsumNs generated "y the 0nternet can "e over#helming for the "an)s to handle or processed. This can, in fact, lengthen the short/listing process. 0f DB

the

DD

screening process is not #ell done, the -uantity of applications=rNsumNs logged/on may "e more of a hindrance to the process than an aid to selection. Ainally, 4o" see)ers #ho demand confidentiality in the recruitment process may "e reluctant to use the 0nternet as a 4o" search mechanism. 8. S*677 P$634+.2 (taff poaching is not exactly a recruitment method in a technical sense, "ut nonetheless a very popular #ay of addressing staffing needs in the selected "an)s. The study revealed that poaching in the "an)ing sector is on the ascendancy, employed "y "an)s to gain competitive advantage over one another. The practice involved the inducement of experience and s)illful staff of a competing "an) to :defect;. This may not "e ethical "ut the "an)s freely and openly poach from one another. 0t has therefore "ecome a challenge for "an)s to face and tac)le poaching, since the practice can #ea)en their competitive strengths.

5.# CRETERIA FOR EVALUATING RECRUITMENT METHODS .hich recruitment method is the "est> .hich recruitment techni-ues should a "an) use> The ans#er to these -uestions depends on the recruitment goals and o"4ectives of the "an) as outlined "elo# 1. C$,* C$.*)$0 0f the goal of the "an) is to fill vacancies at minimize cost then the "est option is to recruit internally "y means of staff transfers, promotions, demotions, recall from retirement, etc. Apart from "eing cheaper, internal recruitment has other advantages such as employee morale "oosting, encourages competent individuals #ho are am"itious, improves the pro"a"ility of good selection since information on the individual@s D&

performance is the

readily availa"le, those chosen internally are familiar #ith

D<

organization thus reducing the orientation time and energy and also acts as a training device for developing middle/level and top/level managers. ?ther suita"le methods include #al)/ins and employee referrals. *. A**)63*+.2 6//0+36.*, 06)2(

0f the o"4ective of the "an) is to attract large num"ers of applicants from #hich suita"ly -ualified people can "e recruited, then the appropriate recruitment techni-ues to adopt are 4o" advertisements, #al)/ins and on/line recruitment. These methods have the a"ility to generate large pool of applicants +. Q560+*1 6//0+36.*, $7

The aim of the "an) may "e set on attracting the "est possi"le cali"er of people #ith the re-uisite s)ills, -ualification and experience. 0f this is the case then the ideal recruitment methods to achieve this goal are college recruitment, employee referrals, staff poaching and private recruitment firms. 8. T+-( C$.,+&()6*+$. The availa"ility of time or a"sence of it can influence the selection of recruitment method. 0f the "an) has lots of time to spare "efore filling a particular vacancy, it may consider using 4o" advertisements and executive search firms "ecause they tend to have long lead time. Ho#ever, if the "an) has limited time to find someone to fill a vacancy it may rely on unsolicited applicants, referrals and poaching. B. R(*5). $. R(*(.*+$. I.'(,*-(.* 6.&

The "an) may "e loo)ing to maximize return on investment i.e. to recover the cost incurred in the recruitment process. That is, the performance of the employee must 4ustify the resources expended in using a particular recruitment method. 0f the D%

recruitment policy of the "an) is to achieve high retention rate and cost/ effectiveness, then 4o" advertisement and private employment firms must "e considered for adoption.

&0

D. C$-/01+.2 ?+*4 )(2506*+$., 6.& (.,5)+.2 76+).(,, ,omplying #ith internal employment policies and government regulations may "e the top recruitment priority of the "an). The "an) may #ant to protect the sanctity of its recruitment processes, ensure fairness and avoid accusations of discrimination. 0f such is the case, then the ideal recruitment methods to achieve these goals are 4o" advertisement and e/recruitment. These methods have #ide circulation and audience and therefore provide fair opportunity to prospective 4o" see)ers. 5.8 CHALLENGES RECRUITMENT 7ffective recruitment re-uires "usiness perspective and expertise to find and match the "est potential candidate for the organization. 0t also re-uires diplomacy, mar)eting s)ills and #isdom to align the recruitment processes to the strategic goals of the organization. The human resource managers J handling the recruitment function of the selected "an)s/ are constantly facing ne# challenges in recruitment. The "iggest of these challenges relates to the source and ho# to recruit the "est people or potential candidate for the "an). 0n the last fe# years, the 4o" mar)et has undergone some fundamental changes in terms of technologies, sources of recruitment, competition etc. 0n an already saturated 4o" mar)et, #here the practices li)e poaching and raiding are gaining momentum managers of recruitment practices are constantly facing ne# challenges in one form or the other. They have to face and con-uer various challenges to find the "est candidates for their organizations. Aindings from the study have highlighted the follo#ing challenges faced "y "an)s in 'hana.

&1

1. A&6/*6%+0+*1 20$%60+C6*+$.

*$

The "an)s in 'hana are expected and re-uired to )eep in tune #ith the changing times of recruitment practices i.e. e/recruitment, automated application processing and other changes ta)ing place across the glo"e. This proved to "e a formida"le challenge to recruiters in the selected "an)s. 2. C$,* C$.*)$0 This relates to the challenge of ensuring that the cost of recruitment fall #ithin approved "udget and do not go out of control. The main challenge for "an)s is ho# to )eep trac) of hiring cost and activities.

3. T+-( C$.,*)6+.*, Most of the recruitment methods tend to have longer lead/time, resulting in hiring delays and #or)/flo# disruptions. Time constraint is therefore one of the ma4or recruitment challenges faced "y "an)s. 8. +.705(.3( E@*().60

The recruitment process is suscepti"le to a"use and interference. The challenge is ho# to protect the sanctity and fairness of the process, ensuring that the interest of the organization is not compromised for personnel gains. 5. T60(.* A3D5+,+*+$. 0t is "ecoming difficult these days for the "an)s to ac-uire the services of hard#or)ing, experienced and s)illful personals. .or) in the "an) is stressful and full of ris). The challenge is therefore ho# to attract the right talents #ith the different recruitment methods. &*

!. R(*(.*+$. $7 E-/0$1((, (taff retention is one of the "iggest pro"lems facing "an)s in 'hana. The stiff competition in the "an)ing sector has resulted in a free for all :poaching; or :raiding; of #or)ers from one another. The "an)s must therefore find #ays of managing this challenge to stay competitive.

5.9 RECOMMENDATIONS The follo#ing recommendations can help the selected "an)s improve their recruitment practices9 1. 0n order to ma)e recruitment more effective, there is the need to implement a functional human resource information system to support recruitment. An effective information system #ould flag imminent vacancies throughout the "an) to ensure that the recruitment process is timely. 0n addition, it #ould assist in analyzing hiring, transfer and exit trends and provide other information that are helpful in planning, evaluating and auditing the recruitment process. Ainally, it #ould help identify any adverse impacts of the recruitment process.

*. Recruitment must commence #ith clear strategy and o"4ectives. The strategy must include the type of candidates to target, the sources to recruit from and the resources re-uired to accomplish the tas). The o"4ective of the recruitment process should "e specific, measura"le, attaina"le, relevant, and time/"ound. +. The "an)s are encouraged to use different recruitment methods #hen sourcing for candidates. Recruiting through different sources #ould ensure that vacancy announcements reaches a #ider audience and may turn up a greater num"er &+

of potential candidates from #hich the "an) can choose.

&8

8. The internet holds the )ey to successful future recruitment. To this end, the "an)s are encouraged to incorporate e/recruitment into their overall

recruitment strategies to reap the full "enefit that goes #ith it. A comprehensive #e"site to receive and process 4o" applications as #ell as application trac)ing system should "e developed. B. 0t is fre-uently said that the "est 4o"s are not advertised5 their availa"ility is communicated "y #ord of mouth. Het#or)ing, therefore, continues to "e a via"le mechanism for recruiting, especially at the senior management level. 0t is therefore an imperative for "an) officials to deepen their contacts and net#or)s #ith friends, "usiness associates and partners as a mechanism to facilitate recruitment. D. There are several alternatives to recruitment that "an)s can ta)e advantage of to save money and reduce #or)load. (ome of these options in this regard include overtime, su"contracting, temporary employees, employee leasing and outsourcing. These options are cheaper and easy to implement compared to recruitment. 5.1: CONCLUSION 0n conclusion, this study has highlighted the gro#ing importance of the #e" as a uni-ue tool for effective recruitment in the 'hanaian "an)ing industry. The study has also indicated that the traditional recruitment methods are less effective in sourcing for competent #or)force #hen used separately. Therefore, multiple methods should "e used to attract large pool of -ualified applicants for selection

&B

REFERENCES Amadasu, 3. *00+!. Eersonnel and the Higerian Management ,risis9 A4eo)uta 0ron and (teel Mill 7xamined. The Abuja Management Review. < 8! p. 1/10 1edia)o, 6. *00<!. Professional skills in Human Resource Management. 6asoa9 Asare/1edia)o and Associates Ayagi, A. *001!. 'lo"alization and the Higerian 7nvironment9 A .a)eup ,all for the Human Resource Eractitioners. Human Resource Management Review. 8B +! p. 18/1B 1rannic), M., 1rannic) $. M 2evine 7. 1%%*!. $o" Analysis, Eersonnel (election, and the A3A. Human Resource Management Review. * +! p. 1&1/ 1<+. ,handan, $. 1%<&!. Management Theory and Practice. He# 3elhi9 Ii)as Eu"lishing House 3e ,enzo, 3. M Ro""ins, (. 1%%8!. Human Resource Management: once!ts and Practices. He# Cor)9 $ohn .iley Eress. 3elany, 6. *00+!. (urvey lin)s9 HR strategies and profits. "nde!endent Human Resource Review. +& *! p.*1/*8 7d#in, A. 1%<8!. Personnel Management. He# Cor)9 Mc'ra# J Hill. Alood, E. M 'i"son, ,. *00*!. Management and #m!loyment: The recruitment$ develo!ment and motivation of !eo!le. ,ape To#n9 Ampersand Eress. '"erev"ie, 3. 7. *00<!. %taff Recruitment$ Retention %trategies and Performance of %elected Public and Private &rgani'ations in (igeria. A Thesis (u"mitted in partial fulfillment of the Re-uirement of ,ovenant Fniversity for the 3egree of 3octor of Ehilosophy. ?ta9 ,ovenant Fniversity. 'ro"let, H.A. et al *00B!. Human Resource Management in %outh Africa. 2ondon9 1edford Ro# Halcro#, A. 1%<<!. #m!loyees Are )our *est Recruiters. 2ondon9 Eearson Hammersa), (. *00*!. The secret of (trategic Recruiting9 Ho# to hire "etter, faster and less expensively in any mar)et. Resource and Recruitment +uide. O?nlineP 1* p.B/D. Availa"le from9 http9== ###."hrc.ca=RRguide Accessed &=D= *011! Hilltrop, $. M 3espres, ,. 1%%8!. 1enchmar)ing the performance of Human Resource Management. &D

2ong Range Elanning. Human Resource Review. *& D!. p. 8+/B&.

&&

Huang, T. 1%%%!. The 7ffects of 2in)age "et#een 1usiness and Human Resource Management (trategies. Personnel Review. +0 *!. p.1+*/1B&. $ago, A. 1%%&!. (electing your team9 ho# to find the right people. Asian ,ibraries. D 1*!. p.18/1%. $ain, H.,. M (aa)shi, 6. *00B!. Personnel Management and Human Resources. 3elhi9 A0T1( Eu"lishers $i)e, I.T. *00+!. ?rganizational 1ehaviour and Hegative Attitudes in Higeria@s Eu"lic

7mployment (ector9 The 7mpirical Hexus. The Abuja Management Review. B <!. p. 8B/D0 $ones, '., 'eorge $, Hill, ,. *000!. ontem!orary Management. *nd 7dition. 0r#in9 Mc'ra#/Hill 6ador, $. 1%%&!. The Managers *ook of -uestions: +reat interesting .uestions for hiring the best !erson. He# Cor)9 Mc'ra# J Hill. 6hatri, H. *000!. Managing human resources for competitive advantage9 A (tudy of ,ompany@s in (ingapore. "nternal /ournal of Human Resource Management. 11 *!. p.++D/+DB 2ind-uist, R. M 7ndicott A.( 1%<D!. Trends in the #m!loyment of ollege and 0niversity +raduates in

*usiness and "ndustry9 1th Annual Re!ort. 7vanston 029 Horth#estern Fniversity Eress Mc,ormic), 7. 1%&D!. Handbook of "ndustrial and &rgani'ational Psychology. ,hicago9 Rand McHally. Hic)els ..'. et al 1%%%!. 0nderstanding *usiness. Bth 7dition. F(A9 0r#in=Mc'ra#/Hill. Eeretomode, I. M Eeretomode,?. *001!. Human Resources Management: Princi!les$ Policies and Practice. 2agos9 ?g"ina)a Eu"lishers. Erasad 2.M. 1%&%!. Princi!les of Management. He# Cor)9 Mc'ra#/Hill. (andra, (. 2. *00%!. Human Resource Management. He# Cor) 9 Mc'ra#/ Hill (chuler, $. M Randall, (. 1%<<!. Personnel and Human Resource Management. Third 7dition. 2ondon 9 Mc'ra#/Hill. (#anepoel, 1.et al *000!. %outh African Human Resource Management. ,ape To#n9 Qe"ra

Eu"lications Terpstra, 3.7. 1%%D!. The search for 7ffective Methods. HR 2ocus. O?nlineP 8. p.1D/1&. Availa"le from9 http9==###.vanguardngr.com OAccessed 1*=<=*011P .al)er, $. 1%%*!. Human Resource %trategy. (ingapore9 Mc'ra#/Hill 1oo) ,o.

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.ayne, 2. *00*!. ,reating recruitment ads that #or). HR Autur. %outh African "nde!endent Human Resource Maga'ine. +0. p.8B/B0

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Agricultural

3evelopment

1an)

*011!.

Historical

Milestones

O?nlineP.

Availa"le

from9

http9==###.agric"an).com=en=get/to/)no#/ad"=historical milestones.php OAccessed9 *B $une *011P 'uaranty Trust 1an) 'hana 2imited *011! ,orporate Erofile O?nlineP. Availa"le from9

http9==###.gt"ghana.com=a"out/us=our/"an)=corporate profile.html OAccessed910 $une *011P 1arclays 1an) 'hana 2imited *011!. 1arclays in 'hana O?nlineP. Availa"le from9

http9==###."arclas.com=africa=ghana="arclaysRin.httm OAccessed9 *B $une *011P Mayo,7. 1%8%!. The Hawthorne and the 3estern #lectric om!any. The %ocial Problems of an "ndustrial ivili'ation. He# Cor)9 Routledge Taylor, A... 1%11!. The Princi!le of %cientific Management. He# Cor)9 Harper M 1rothers

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APPENDICES APPENDI" A ADB BRANCH NET BRANCHES ORKS IN NORTHERN REGION LOCATION NO. EMPLOYEES T6-60( M6+. A%$6%$ B)6.34 S6'(0525 M6)>(* 60(?60( Y(.&+ T6-60( A%$6%6< T6-60( S6'50525 60(?60( Y(.&+ 25 15 1: 1: 11 OF

APPENDI" B BARCLAYS BANK BRANCH NET BRANCHES T6-60( M6+. G5-6.+ B)6.34 ORKS IN TAMALE METROPOLIS NO. OF EMPLOYEES 18 12 LOCATION T6-60( G5-6.+B T6-60(

APPENDI" C GUARANTY TRUST BANK BRANCH NET BRANCHES LOCATION ORK IN NORTHERN REGION NO. EMPLOYEES T6-60( M6+. T6-60( M(*)$/$0+, 13 OF

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INSTITUTE OF DISTANCE LEARNING K AME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY COMMON EALTH E"ECUTIVE MASTERS OF BUSINESS ADMINISTRATION QUESTIONNAIRE 3ear respondent, this -uestionnaire is designed to collect information on the research topic9 :7valuation of Recruitment Methods9 A case study at selected "an)s in 3odoma Municipality.; The research is part of the re-uirements for the a#ard of Masters in 1usiness Administration Human Resource "y (t. $ohn@s Fniversity. Elease do not sign your name J your responses #ill "e confidential. Cour co/operation #ould "e greatly appreciated. Than) for your time. SECTION AE RESPONDENT=S PERSONAL INFORMATION 1. Elease #hat is your gender> Tick where a!!ro!riate! O P male O *. Elease select your age group O P "elo# *0 yrs O P *0 J *% yrs O P +0 J +% yrs O P 80 J 8% yrs O P B0 yrs and a"ove +. .hat is your marital status> O P single O P married O P divorced 8. .hat is your academic -ualification> O P diploma O P degree O P professional -ualification B. Elease indicate "y tic)ing the "an) you #or) #ith O P H1, O P A601A O P ,R31 D. Ho# long have you #or)ed #ith your current employer> O P "elo# B yrs O P B J 10 yrs O P 10 J 1B yrs O P 1B yrs and a"ove &. .hat is your current 4o" grade in the "an)> O P 7xecutive Assistant O P 7xecutive Trainee O P Assistant 1an)ing ?fficer P female

O P 1an)ing ?fficer O P 3eputy Manager O P Manager= (enior Manager O P ?thers, please stateSSSSSSSSS. <. .hich of the follo#ing 4o" positions do you fall into> O P ,ashier O P ,ustomer information officer O P Aunds Transfer officer O P ,redit officers O P Relationship officer O P ,ash officer O P others, specifySSSSSSS %. Cour position in the "an) isSSSSSS. O P Eermanent O P ,ontract O P ?utsourced

SECTION BE RECRUIMENT METHODS OF SELECTED BANKS 10. Ho# #ill you descri"e the recruitments needs of the "an) you #or) in> O P planned O P anticipated O P unexpected

11. Ho# often does your "an) recruit people to fill vacancies in a year> O P at least once O P at least five times in a year O P more than five times 1*. Iacancies occur in the "an) as a result of the follo#ing factors please tic)! O P transfers= redeployment O P retirements &8

O P resignations

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O P "usiness expansion O P dismissals O P death 1+. Ho# does your "an) source for people to fill existing vacancies> O P source for people internally O P source for people externally O P "oth

18. .hen sourced internally, vacancies are filled through please select! O P transfers O P promotions O P upgrading O P demotions O P retired employees O P dependents or relatives of deceased employees 1B. .hen sourced externally, vacancies are filled throughSSS.. O P Advertisements O P placement agencies= outsourcing O P unsolicited applicant O P employee referrals O P 7ducational 0nstitutes O P 4o" fairs O P 4o" centers O P others, please specifySSSSS. 1D. .hich of the methods "elo# does your "an) use fre-uently> O P Radio Advertisement O P He#spaper Advertisement O P TI Advertisement O P 7mployee referrals O P 1an) &D

#e"site O P Recruitment Eosters

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O PErivate recruitment agencies O P(pecialized recruitment #e"sites O P Ariend=family of staff 1&. .hat do you thin) is the reason for your "an)@s selection of a particular method s! of recruitment in the a"ove> O P #ide reach O P saves lot of time O P attract the right people O P 0ncrease the pool of 4o" candidates at minimum cost. O P help the "an) to meet its legal and social o"ligations O P help increase the success rate of selection process. O P others, stateSSSSSSSSSSSSSSSSSSSSSSSSSSS. 1<. .hich of the follo#ing do you thin) is the most effective recruitment method> O P local paper O P centres 4o" please

O P #ord of mouth O P agency recruitment

O P apprentices=national service O P #e"site O P employees referrals O P educational institute O P others 1%. .hich of the sources listed "elo# do you thin) are less effective> O P local paper &<

O P centres

4o"

O P #ord of mouth

&%

O P agency

recruitment

O P apprentices=national service O P #e"site O P employees referrals O P educational institute O P others *0. .hich of the follo#ing external factors influence recruitment in your "an)> O P availa"ility of s)illed la"our O P company good#ill image=

O P political/legal/social environment O P competitors O P unemployment rate *1. The internal factors that influence recruitment decisions are the SSS O P cost of recruitment O P gro#th and expansion O P size of the company O P others, stateSSSSSSSSSSSSSSSSSS please

**. 3oes your company put out adverts #ithout revealing its identity> O P yes O P no 0f yes #hat is the reason for doing that>........................................................................................................... *+. 3oes your company engage in Gpoaching@ or G"uying talents@ from its competitors> O P yes O P no <0

0f yes, #hat is the reasons that>....................................................................................... *8. .hat are the challenges facing recruitment in your organization>

for

doing

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O P multiple candidate sourcing channels due to shortage of talents O P increased volume of application due to high unemployment O P use of connections and informal contacts to get employment O P difficulty in )eeping trac) of recruitment cost and activities O P poor #ider coverage of recruitment methods O P others, please stateSSSSSSSSSSSSSSSSSSSSSSSS. *B. Ho# can these challenges "e overcome> O P encouraging #al)/in applicants O P advertising on/line via the internet O P ensuring openness and transparency O Pcomputerizing handling and trac)ing applications O P outsourcing recruitment activities O P setting recruitment goals and "udget *D. .hat recommendations #ill you ma)e to improve recruitment activities in your company> SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS

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