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Running Head: The impact of E-recruitment on organizational performance of Telenor

The impact of E-recruitment on


organizational performance of Telenor

Haseeb Ahmed (58214)

Research Report

Submitted to Ma’am Qurat Ulain Kazmi

Methods of Business Research

PAF Karachi Institute of Economics and Technology


The impact of E-recruitment on organizational performance of Telenor

Acknowledgement

Starting with the name of ALMIGHTY ALLAH subhanawa`ta`aalah who gave me courage and
inspiration to complete this research case study. I would like to acknowledge the enthusiastic
supervision of Ma’am Qurat Ulain Kazmi who emboldens me in my project. I greatly appreciate
her skillful efforts and contribution which enabled me for introducing my idea. Due to her deep
and valuable guidance and advice throughout every phase of my project, I have completed my
Research report on an impact of E-recruitment on organizational performance.

On successful completion of the report, I would like to take the opportunity to acknowledge the
contributions of a number of people who helped in making this report a reality.

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The impact of E-recruitment on organizational performance of Telenor

CHAPTER 1

1.1 Introduction:

The e-recruitment system is also sometimes referred as an online-recruitment system.


This is the process of recruiting staff with the use of technological resources especially on the
Internet. It makes the recruitment process most effective and proficient with a reduced amount of
utilization of time. This is an adaption of manual hiring into swift development of recruiting
system. The many benefits of online recruitment are the great mobility of candidates, the rapid
exchange of information between employers and potential job seekers, little cost of advertising,
availability of dates and accessibility, smaller communication costs and improved organizational
attractiveness. As a result, many organizations have changed their recruitment into an Internet-
based recruitment system. But e-recruitment also has its disadvantages, particularly with regard
to the quality of the candidates, its greater diversity, over-exaggerated CVs, reduced response to
the candidates and the confidentiality of the questions. On the other hand despite the fact that
online recruitment is translated more effectively and efficiently by being the fastest way to find
the right job seekers for the right job, it is convenient than manual recruitment system.

Free use of online hiring methods seems to have developed a gap between online
recruiting and research. As an addition in the contribution of research, many have targeted the
insight of candidate of career sites, commercial hiring recruitment website plan and system’s
design of e-recruitment. The standpoint of organization can be said as the organizing and
committed process of hiring activities and errands within the company and in the context of
company’s atmosphere.

Telenor was launched in Pakistan on March 2005. It became one of the largest mobile
telecommunication company in the country. For staff selection, recruiting is responsible for
Telenor. For Telenor, recruitment is the primary area of focus through which brings most
effective ways for attracting and recruiting high performance applicants to the organization.
Telenor is conducting its recruitment process via web-based and Telenor's public web site,
known as the electronic recruitment system.

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The impact of E-recruitment on organizational performance of Telenor

1.2 Background:

Researchers broadly agree on the growing importance of the recruitment system for
organizations in the strategic development of HRM and human capital. To attract and identify
potential applicants is the main objective of recruitment. Recruitment is the practice process and
carries out activities by the company with the main purpose of analyzing, engaging and
influencing the choice of competent jobseekers. The course of recruitment activities is either for
current employees working in the organization known as internal recruitment or for external job
seekers known as external recruitment. This report focuses on externally recruited applicants, as
the applicant's internal recruitment system addresses other issues, such as career development or
planning.

Electronic recruiting can be considered as a recruitment using various electronic


techniques. Website, internet or online hiring can be described as the process of examining and
attracting possible candidates through the use of the Internet, such as a vacancy announcement
attracts the pool of candidates through the organization's web sites and its work place. An
electronic recruitment is the back office system where the recruitment process is administered.
Electronic recruitment is perceived as an umbrella covering various recruitment activities
through electronic and online techniques involving online recruitment and e-recruitment systems.

There are variations in complexity and the magnitude of difficulties in the recruitment
process depends on the goals and sources of recruitment chosen. For external recruitment, the
most frequently used sources are newspapers, public and private agencies, business websites, job
offers, recruitment agencies, placement agencies, universities and colleges, etc. The only goal of
e-recruitment, using its recruitment source, i.e online job advertisements, is on the recruitment
system through advertising for candidate sourcing.

Conventional recruitment methods employing formal sources such as job offers begin
with the identification of candidates, their placement and position on the job market and induce
the applicant to attract activities and persuade them to apply. Then, job applications obtain, filter,
arrange and proceed to the draw up of the shortlist. The end of the procedure is the
announcement of pre-screening results to candidates.

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The impact of E-recruitment on organizational performance of Telenor

1.3 Research Objective

 To determine whether the introduction of E-recruitment system enhances the


performance of the company.
 To identify the degree of persuasiveness of e-recruitment on the performance of the
employees.

1.4 Research Question:

To attain the objective of the report, following research question are addressed:

 What is the impact on organizational performance of enterprise after the adaptation of E-


recruitment system?
 What is the degree at which e-recruitment can persuade the improve performance of
employees?

1.5 Significance of the research:

The research on impact of e-recruitment on organizational performance is very critical


and valuable for the administration of organization, recruitment practitioners and officers,
employees, influencing agents and the government. This research reveals the impact of e-
recruitment procedure that will be on organizations and workforce performance.

These discoveries would be of great importance to the organization as they would allow a
comparison of the recruitment procedures modified of the organization. It helps the organization
achieve organizational goals, increase efficiency and align the long-term achievement of the
results. Furthermore, it also helps employees to have a clear idea and to become aware of the
different processes and recruitment policies.

1.6 Problem statement:

The problem with the e-recruitment process concerns the quality and quantity of
applicants who have applied through web-based techniques, data protection and privacy and the
assurance of diversity of applicants. It is complicated to quantify the effectiveness, as there is
often a high response rate among candidates where some job applications may not be applicable
depending on the job application.

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The impact of E-recruitment on organizational performance of Telenor

1.7 Limitations:

Although the research has reached its aim, there were some unavoidable limitations.
First, because of limited time, this research was conducted on very small population sample size
of Telenor. Therefore to generalize for larger groups, the research study should have involved
more participants at different levels. Secondly, the biasness of employees may affect on the
result of research study.

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The impact of E-recruitment on organizational performance of Telenor

CHAPTER 2

Literature Review

2.1 Online recruitment as the process of hiring:

The meaning of recruiting procedure has made an addition of a complete functional series
to simple recruitment. This means that the company makes choices and decides whether the
candidates meet the specific requirements of the and whether they should be hired or not. The
second step is to complete the transaction and make sure that a new employee joins the
organization and adapts to the existing corporate culture. This means that the organization's
recruitment policies have been characterized; there is an intake process, which is defined in the
following steps:

 Analyze, describe and draw job offers


 Enticing candidates
 Classifying applicants
 Notifying candidates
 Closing the deal
 Conversing new employees

(Parry & Tyson, 2008) conducted a survey on the recruitment activities of organizations
using six-year interviewing and survey methods to determine whether respondents use electronic
recruitment or not, if they foresee their use of the Internet to change recruitment and what impact
they hope in online recruitment to use other recruitment methods: human resources managers,
directors, general managers, CFOs and HR specialists recruitment

A study was conducted by (Kar & Bhattacharya, 2009) in which these factors were
determined that could contribute to the effectiveness of the elements of the job portal and work
portals that could contribute to increasing user satisfaction with respect to use of portals.
Personal interviews and methods of investigation were conducted to achieve these goals. In the
study, 250 specially selected respondents participated.

The study showed that groups aged 18 to 22 and 33 years old and above is more
interested in finding vacancies through job portals. The key factors are the distribution of
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The impact of E-recruitment on organizational performance of Telenor

recovery and face-to-face interaction in the contribution of the popularity of job portals.
Respondents believe that they would be more satisfied with job portals if online tests, chat
services and call centers were available in job portals.

2.2 Web-based communication:

(Mol & Sylvia, 2009) studied the perception of candidates for Internet-based processes.
In the United Kingdom, Belgium and the Netherlands, 1360 respondents were candidates for
jobs in multinational financial administration associations. As regards demographics, it emerged
that external candidates, Belgian candidates and Internet experts were more satisfied with the
online application process. It was also revealed that the characteristics of the website, the
friendliness of the users and the perceived effectiveness were the main determinants of the
satisfaction of the candidates.

(Haroon & Zia-ur-Rehman, 2010) also examined e-recruitment in Pakistan. Sixty five
(65) respondents from large and small organizations from various industrial sectors in Pakistan
participated in the research. Data collection was carried out by telephone interviews. (Haroon &
Zia-ur-Rehman, 2010) have shown that small businesses were more preferred than larger
organizations in terms of using electronic recruitment. They also verified that large organizations
had their own job portals and use them to hire applicants as compared to small organizations.
They have shown that Internet recruitment has become a new medium that could replace other
traditional methods of recruitment and offer greater benefits, such as reducing recruitment costs,
reducing time capacity, rapid response functionality to check status and development of CV on
the Internet.

Finally, the influence of Internet recruitment on the design of the recruitment process was
also examined. Three exploratory case studies were conducted by (Holm, 2012) in three
multinational companies between 2008 and 2010 in Denmark. The research examined the
possible variation of activities, tasks and sub-tasks of the company's recruitment system that had
been attributed to the use of Internet assumptions. In-depth use of semi-structured face-to-face
interviews with key informants ( for instance Recruitment Planners, Human Resources Partners,
Employer Trademark Managers and others involved in the recruitment system), has revealed that
the recruitment of online recruitment method in independent space and time, a collaborative

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process of recruiting candidates. These conclusions were in agreement with the studies presented
previously. It was also revealed that the increase in the divisibility and sequence of the main
recruitment activities and secondary activities were more important changes in the procedure.

2.3 E-ways impact on organizational performance:

The popularity of the Web as a source of recruitment is currently seeing a variety of


vacancies advertised online, deriving from traditional trades / blue collar jobs and professional
jobs and white collar (Baxter, 2005). The costs of corporate recruiters could be significantly
reduced by a measure that currently pays taxes to publish vacancies on commercial portals /
bulletin boards and have the opportunity to remove commercial portals / bulletin boards from the
market in case they would never be able to capitalize on it (Zappe, 2005).

Three most widespread ways of hiring by technology tools are:

 Adding recruitment pages to the website of the existing organization (as mentioned by
(Lee, 2005), mainly due to the increase in costs and rigidity of using traditional media
and other recruitment tools on the Web site, this path becomes common to a large extent.
 The practice of specialized recruitment sites that provide support between companies and
potential candidates such as job portals, online job sites, online recruiters and
employment agencies.
 Practicing the media means inserting advertisements in more traditional media such as
newspapers that have their own websites where they advertise simultaneously, especially
for free

With the use of internet (Duncan & Hausdorf, 2004) an attempt was made to link the size
of the organization by assuming that larger companies are more likely than small businesses,
which are more likely to use a more traditional recruitment process to use the Internet as a
source. Their conclusion indicates that although the size of the company has an impact on the use
and knowledge of alternative Internet sources (work sheets), the size of the organization does not
affect the size of the organization. Use of the website for recruitment or the types of positions
advertised or the amount of information provided on the job. This discovery again provides an
indication of the growing popularity and use of electronic recruitment in the organization's hiring
strategies, regardless of the size of the organization.

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The impact of E-recruitment on organizational performance of Telenor

The use of e-recruitment has also being fostered and motivated by the organizations
through the integration of online recruitment with the company's global branding and marketing
strategies by including internet address of the company in the main and classified advertisements
(Challapalli, 2005). There is no doubt that we are studying the possibility of linking the
organization's advertising to the increasing quality of candidates (Han & Collins, 2004). The
results of their research indicate that the organization's publicity is the only predictor that still has
direct convincing consequences on the applicant's quality measures (education and work
experience of one year) and the applicant's amount (the total number of requests) .

2.7 Conceptual Framework:

Quality
applicants

Organization
E-recruitment
performance

Individual
performance

2.4 Description of Framework:

The conceptual structure indicates the relationship between the efficiency perspective of
the individual, organizational and recruitment system in terms of quality and quantity of the
candidate's pre-superior recruitment score. It has obtained independent and dependent variables
while also revealing the effectiveness and efficiency of online recruitment, which improves our

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organizational performance. This is a comparison between electronic recruitment and the


traditional recruitment system. Depending on individual and organizational perspectives to
evaluate the effectiveness of generating quality candidates. This shows that the Internet attracts
more candidates than traditional sources, which increases the option for the organization to
choose more prospective and appropriate applicants for the right position.

Among the wide range of candidates, the company selects people with the skills and
qualifications required that ultimately improve organizational results. Furthermore, it reduces the
cost incurred by organizations such as the official source of vacancies such as newspapers and
pay agencies is more expensive

2.5 Hypotheses of Research:

Ho: Online recruitment decreases the number of received quality applications.

H1: Online recruitment results an increase in the number of received quality applications.

H2: Online recruitment has positive impact on organizational performance.

H3: Online recruitment has positive impact on employee performance.

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The impact of E-recruitment on organizational performance of Telenor

CHAPTER 3

Methodology

3.1 Research Design:

1) Exploratory Strategies:
 Case study

Case studies indicate that candidates find vacancies by checking the most common
sources of intake. Usually, candidates take into consideration advertisements in newspapers,
Internet advertising, word of mouth through relatives and friends or others for the application of
the work they would be qualified to request. Furthermore, these are the most common
recruitment sources used by the organization.

In market, methods for recruitment are done in 3 ways;

1) The conventional method is through the old techniques such as newspapers advertising,
momentary recruiting firms, the head hunter etc.
2) Recruitment of the "new look of conventional method that constitutes real old techniques
in the new face for instance online newspaper announcements, online momentary
recruitment firms, online head hunter etc.
3) The most used medium is the “E-WAY” in the today’s state of affairs. It merely
incorporated electronic recruitment methods such as organization’s website, career
boards, portals etc.

2). Approach:

The deductive approach was used for data collection and data analysis. The chronological
data gathered through the researches reveals that since the opening of internet as a resource of
recruitment, more applications are received and numbers are increasing. This is mainly due to the
increase in the number of vacancies advertised by the company. The effectiveness of electronic
recruitment is particularly related to the greater validity of the data analysis of the applicant.

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3.2 Research Philosophy:

 Interpretivist:

Recruitment through internet is one of the most trendy procedure of enrollment that is a
non-conventional method. Electronic recruitment has bridged the gap between recruitment
processes by overcoming the challenges that organizations face in a hungry market and reducing
the number of resources needed to administer the hiring process. Online recruitment has emerged
as a valuable way to find potential people who are open to the appropriate opportunity. Because
of the rapidly changing technologies, companies have changed the way they drive, increasing the
use of technology demonstrated by the number of people and organizations that use email and
the Internet. Medium and small sized companies endow electronic recruitment as instrument of
success, considering two compulsory trends. The first is the demographic trend that has
improved technology and a simpler approach to information created between employees and
companies has increased the likelihood of looking for the right candidate for the right opening.
Secondly, lowering the cost of applications encourages an increase in the demands of suitable
job seekers, which triggers greater organizational effort to improve screen mechanisms.

The negative side of electronic recruitment is also due to the recruitment of people
electronically, a large number of candidates submit their CV because it requires less costs and
involves less effort, so hypotheses have been made to increase the size of the pool of candidates
in the organization at the end. For this reason, companies must be more selective, which could
lead to an increase in the cost of selection and the recruitment system. It is therefore essential to
identify whether the introduction of the Internet as a source of employment would lead to
organizational development.

3.3 Sampling Technique:

Random non-probability sampling will be used within Telenor, which involves selecting
an individual as a random responder. The task to acquiring a random sample is somewhat
complex but it is also a significant element.

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3.4 Sampling Criteria Size:

Given that the company's population is known and due to time constraints, the sampling
size is 30 respondent employees of Telenor company.

3.5 Data Collection:

The quantitative data collection method would be used to gather information, based on
random sampling and a structured data collection tool. The quantitative data collection strategy is
administrating survey, it would be questionnaire (Likert scale).

3.6 Sampling Formula

For sampling formula, raosoft.com was used where confidence level was 95% with
margin of error of 5%.

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References

Baxter. (2005). Modelling predation as a capped rate stochastic process, with applications to fish
recruitment. Journal of the Royal Society Interface .

Challapalli. (2005). Those grand job ads. Business Line .

Duncan, & Hausdorf. (2004). Firm Size and Internet Recruiting in Canada: A Preliminary
Investigation. Journal of Small Business Management , 325–334.

Han, & Collins. (2004). Exploring applicant pool quantity and quality: The effects of early
recruitment practice strategies, corporate advertising, and firm reputation. Blackwell Publishing ,
685-717.

Haroon, & Zia-ur-Rehman. (2010). E-recruitment: Across the small and large firms in Pakistan.
Interdisciplinary journal of contemporary research in business , 179-191.

Holm. (2012). E-recruitment: Towards an Ubiquitous Recruitment Process and Candidate


Relationship Management. German Journal of Human Resource Management (GHRM) , 241-25.

Kar, & Bhattacharya. (2009). E-Recruitment and Customer Satisfaction: An Empirical Study in
and Around Kolkata. ICFAI Journal of Management Research , 34.

Lee. (2005). The Evolution of E-Recruiting: A Content Analysis of Fortune 100. Journal of
Electronic Commerce in Organizations , 57-68.

Mol, & Sylvia. (2009). E-Recruitment: A study into applicant perceptions of an online
application system. International Journal of Selection and Assessment , 311-323.

Parry, & Tyson. (2008). An analysis of the use and success of online recruitment methods in the
UK. Human Resource Management Journal , 257-274.

Zappe. (2005). Jobs could transform recruiting arena. Workforce Management , 54-55.

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Questionnaires

Demographic form

Name: __________________________ Age: ______________________________

Gender: ________________________ Educational status:__________________________

Years of Experience: _______________________

Strongly Disagree
Strongly Agree
S.No. PLEASE CIRCLE THE ONE NUMBER FOR EACH
QUESTION THAT COMES CLOSEST TO REFLECTING

Disagree
Neutral
Agree
YOUR OPINIONABOUT IT.
1 E-recruitment helps in developing positive image of the 1 2 3 4 5
organization.
2 Company’s website provides relevant information about the
job to the candidates. 1 2 3 4 5
3 Applying for jobs through online-recruitment is the most
highly developed way. 1 2 3 4 5
4 E-recruitment is more effective way than the old
conventional method for the storing of resumes? 1 2 3 4 5
5 Better qualified individuals can be attracted for job openings
with the help of E-recruitment. 1 2 3 4 5
6 Large pool of applications can be attained through E-
recruitment. 1 2 3 4 5
7 Cost of online job posting is less than the cost incurred for
advertizing jobs in the newspaper. 1 2 3 4 5
8 Recruitment and Selection cost decreases because of E-
Recruitment. 1 2 3 4 5
9 Storing huge amount of resumes takes time in E-
Recruitment. 1 2 3 4 5
10 Organizational performance increases due to recruitment of

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qualified employees via E-Recruitment. 1 2 3 4 5


11 Current employees appointed through job boards/portals
feels motivated that they were not hired by an referral? 1 2 3 4 5
12 E-recruitment helps in reduction of employee turnover
appointed through e-recruitment? 1 2 3 4 5
13 Applicants who are willing to apply for the job find social
networks and job portals more approachable? 1 2 3 4 5
14 In today’s challenging environment, E-recruitment helps in
hiring qualified persons? 1 2 3 4 5
15 E-Recruitment plays as a fundamental component in
organizational success? 1 2 3 4 5

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