The Impact of Recruitment and Selection Criteria on Organizational Performance
It is statistically proved that there is a positive correlation between the recruitment and selection process and the performance of a company (Kanyemba, Iwu and Allen-ILE, 2015), and the probability of achieving the goals and objectives of a company with an effective recurrent process is higher (Djabatey, 2012).
In
statistics, correlation coefficients are used to measure how strong a
relationship is between two variables (Taylor, 1990). As Table 02
and Table:02 show, the correlation coefficients of the recruitment and
selection and the other factors associated with the organizational performance are
greater than zero. A positive correlation coefficient indicates a strong
positive relationship between recruitment and selection and organizational
performance.
Table
01: Correlation analysis of the recruitment process and the organization performance
Most
studies have explained the improvements in organization performance through a
good recruitment process as given below.
Table
02: Correlation analysis of the recruitment process and the other factors
Source:
(Gamage,
2014)
1. Due to recognizing the
right people in the organization, the quality of work-life and productivity
have increased significantly (Abraham et al., 2015).
2. Companies have
accomplished many organizational innovations with high levels of trust in
management and high levels of cooperation among employees (Christensen
Hughes and Rog, 2008)
3. Financial
performance indicators such as sales growth, return on invested capital and
return on assets have shown favorable values when there is an effective
recruitment methodology in the organization (Saifalislam, Osman and
AlQudah, 2014)
Drawbacks of Poor Recruitment and Selection
Process on Organizational Performance
Research
done by Bacon
and Hoque (2005) has identified that
the organization's success will be directly affected by diversifying skills,
working as a team, and the existing customer base. Therefore, they have
suggested that having an ineffective recruitment and selection methodology will
drive the company to financial and non-financial losses.
Ineffective
recruitment decisions can lead to limit goal achievement. When the HR team cannot
acquire the candidate with the required knowledge, skills, and proficiency, it
creates unwanted costs and adverse outcomes, such as high training costs, loss
of customers, bad reputation, and poor productivity (Djabatey,
2012).
Companies
should understand that company image developing methods will support to attract
customers and the best-talented employees. Therefore, the company should always
try to create a proper relationship between the recruitment process and the
marketing strategy as it helps build better financial performance in the long
run (Kashive
and Khanna, 2017).
In
conclusion, recognizing the most talented candidate impact the sustainability
of the organization. Employees are considered the biggest asset of the
company. Effective recruitment and selection process recognizes candidates'
right skills and quantity and improves employees' expertise, skills, and
capabilities. However, it is recommended that implementing training and
management development programs further enhance the company's performance.
Also, sophisticated technologies need to be used to plan and develop the recruitment
process.
Reference
Bacon,
N. and Hoque, K. (2005). HRM in the SME sector: valuable employees and coercive
networks. The International Journal of Human Resource Management, 16
(11), pp.1976–1999. [Online]. Available at: doi:10.1080/09585190500314706.
Christensen
Hughes, J. and Rog, E. (2008). Talent management: A strategy for improving
employee recruitment, retention and engagement within hospitality
organizations. D’Annunzio‐Green, N. (Ed). International Journal of
Contemporary Hospitality Management, 20 (7), pp.743–757. [Online].
Available at: doi:10.1108/09596110810899086.
Djabatey,
E. N. (2012). Recruitment and Selection Practices of Organisations: A Case
Study of HFC Bank (Gh) Ltd. Kwame Nkrumah University of Science and
Technology. [Online]. Available at:
http://oatd.org/oatd/record?record=oai%5C%3Ahttp%5C%3A%5C%2F%5C%2Fir.knust.edu.gh%5C%3A123456789%5C%2F4294
[Accessed 8 May 2021].
Gamage,
A. S. (2014). Recruitment and Selection Practices in Manufacturing SMEs in
Japan: An analysis of the link with business performance. 1 (1), p.16.
Kanyemba,
M., Iwu, C. and Allen-ILE, C. (2015). Impact of recruitment and selection on
organizational productivity. Evidence from staff of a university in South
Africa. CORPORATE OWNERSHIP & CONTROL, VOLUME 12, pp.177–185.
[Online]. Available at: doi:10.22495/cocv12i2c1p1.
Kashive,
N. and Khanna, V. (2017). Study of Early Recruitment Activities and Employer
Brand Knowledge and Its Effect on Organization Attractiveness and Firm
Performance. Global Business Review, 18, p.097215091769333. [Online].
Available at: doi:10.1177/0972150917693334.
Saifalislam,
K., Osman, A. and AlQudah, M. (2014). Human Resource Management Practices:
Influence of recruitment and selection, and training and development on the
organizational performance of the Jordanian Public University. IOSR Journal
of Business and Management, 16, pp.43–46. [Online]. Available at:
doi:10.9790/487X-16554346.
Taylor,
R. (1990). Interpretation of the Correlation Coefficient: A Basic Review. Journal
of Diagnostic Medical Sonography, 6 (1), pp.35–39. [Online]. Available at:
doi:10.1177/875647939000600106.
Agreed with you Harsha, Adding to your article Sunday, et al., (2015) state that recruitment and Selection is a vital process for every successful organization because having the right staff improves and sustains organizational performance. The impact of an organization's selection system influence bottom-line business outcomes, such as productivity and financial performance a dream for any organization.
ReplyDeleteThanks for your comment. Organizational performance ,i.e., financial and non-financial returns, is affected by the human determinant design in the recruiting process. Hence, it is relevant to connect infinite schemes and attempt to achieve comprehensive and authoritative learning about the applicant's job profile, to discover his or her appropriateness for the position and the gain to the company and to discover the motivation of the candidate, and the understanding why the candidate is interested in the post (Vetráková et al., 2011).
DeleteAdding to what you have explained organization should adopt the valid recruitment and selection method that identify the competent individuals who exactly match company requirement and culture. If right talent is acquired the performance of the organization will improve (Ekwoaba, Ikeije and Ufoma, 2015).
ReplyDeleteYes indeed! Furthermore, to build stability in many organizations, the HR team must improve, implement, and control the critical factors of a great hiring and evaluation method. By comparing market trends and directions and past company data, the HR team should analyze the performance management methods and guidance aligned with recruitment stratergies (Smith, 2009).
DeleteAgree with the above points Harsha, Mohammad et al., (2014) asserts that proper a recruitment plan which is aligned with the strategy of an organization and selecting the best candidates ensures the high quality and skills of the organization which in turn impact the performance of the organization.
ReplyDeleteAppreciate your time and ideas. Successful HR practices, such as hiring and training people, helps to retain skilled and fruitful employees. Established businesses attain their competitive advantage from the performance management system, allowing them to recruit capable personalities and allocate them to suitable positions. Meanwhile, consolidate their accomplishment with the company's collective purpose (McMahon,2013).
DeleteAgree with you. People are an organizations most valuable resources. The performance of an organization depends on its staff, and their training, organization and discipline. Good Quality work depends on good quality people. Consequently, an organization that has a poor recruitment process is unlikely to recruit the right people. This may lead to poor performance, low profitability and eventual demise(Mohammed,2012)
ReplyDeleteAppreciate your time and ideas. As I have explained in the post, there is a positive correlation between the hiring process's effectiveness and overall performance. Moreover, as Treen (2000) reveals, businesses expect the most desirable possible yield from the employees, and producing the most excellent workouts will assist in meeting the goals and objectives of the business. The most beneficial exercises improve the abilities of the company's current workforce and help in hiring extremely skillful candidates (Mullins, 2005).
DeleteAgree Harsha, Effective selection technique can acquire right candidate to the right position that helps to improve organization efficiency & effectiveness at the end that will positively impact to organization goals(Darkoh, 2014).
ReplyDeleteAppreciate your time and ideas. Employee's demotivation and underperforming could be a consequence of the recruitment and selection process. Selecting the right employees could be expensive, and if not undertaken correctly, companies will suffer from many problems later. A robust execution should be inserted into the recruiting process when it is being planned and developed. For instance, when outlining a job description, the HR team should try to make it realistic. Also, a job description has to be time-bound and represent the exact requirements of the job. It should explain the most critical regular services the employee will meet in completing his duties (Djabatey, 2012).
DeleteI agree Harsha, The selection of right candidates for the right positions will help the organization to achieve its desired objectives. When selection of the employees takes place, it is vital to ensure that they possess the desired qualifications, skills and abilities that are required to perform the job duties in a well-organized manner (Radhika, 2018).
ReplyDeleteAgree with you on your points. Employee achievement could be influenced by numerous factors, such as support from subordinates, work overload, and relationships with co-workers (Klassen & Chiu, 2010). At present various enterprises have diverse capabilities to create a competitive advantage. The majority in the dynamic environment faces difficulties acquiring the best personality for the right job while securing the organizational performance (Chyna, 2002).
Delete