THE EFFECT OF STRATEGIC HUMAN RESOURCES PRACTICES ON

EMPLOYEE PERFORMANCE: A CASE STUDY OF NIGERIAN NATIONAL

PETROLEUM CORPORATION (NNPC)

BY

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 AMAL ABUBAKAR

BU/16A/BS/1855

BUSINESS
MANAGEMENT

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Abstract

Strategic human resource management (SHRM) has been defined as the planned pattern of
human resource (that is workforce) and human resource management (that is, functional)
deployments and activities intended to enable the organization to meet organizational goals
and objectives (McMahan, Virick and Wright, 2009). Human resource (HR) practices are the
primary means by which firms can influence and shape the skills, attitudes, and behaviour of
individuals to do their work and thus achieve organizational goals (Collins and Clark, 2013).
Mayhew (2015) noted that HR functions are significantly different from HR practices and it
is important to heed these differences. She states that functions are comprised of transactional
activities that can be handled in-house or easily outsourced. Whereas practices are part
conceptual, part implementation of a HR strategy, comprised of systems that follow the
normal or customary way of doing business. This study sought to determine the effect of
strategic human resource management practices on employee performance with a key focus on
NNPC Abuja. This study will focus mainly on the effect of recruitment and selection on
employee performance as part of HR function. It has to find out the recruitment and selection
policy or practice, the impact of recruitment and selection process, the challenges associated
with the recruitment and selection practice and ways to help improve human resource planning
and development. The study revealed that the selecting and recruitment process are
also characterized with lots of challenges, Among the recommendations made were that
potential employees should all be treated fairly in the recruitment and selection
process, more so employees must be appraised constantly to ensure that they improve upon
their performance.

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

The business environment is changing rapidly in this era and it made the business units to adopt
the human resource management practices to compete in their industries and to make success.
The impact of human resource management practices on employee performance has been
conducted to validate this relationship. This study found a positive relationship between almost
each human resource management practice and employee performance (Mathison and Vinja,
2010)

Human resource management (HRM) is an essential factor for sustained competitive

advantage. Research highlights that organizations develop sustained competitive advantage
through management of scarce and valuable resources. This realization has led to the new role
of human resource managers as strategic partners in formulation and implementing
organizational strategy.

Strategic human resource management (SHRM) has been defined as the planned pattern of
human resource (that is workforce) and human resource management (that is, functional)
deployments and activities intended to enable the organization to meet organizational goals
and objectives (McMahan, Virick and Wright, 2009). Human resource (HR) practices are the
primary means by which firms can influence and shape the skills, attitudes, and behaviour of
individuals to do their work and thus achieve organizational goals (Collins and Clark, 2013).
Mayhew (2015) noted that HR functions are significantly different from HR practices and it
is important to heed these differences. She states that functions are comprised of transactional
activities that can be handled in-house or easily outsourced. Whereas practices are part
conceptual, part implementation of a HR strategy, comprised of systems that follow the
normal or customary way of doing business.

SHRM focuses on aligning internally consistent Human Resource Management (HRM)

practices to build employees’ knowledge, skills, and abilities in an effort to support
competitive strategies and achieve business objectives (Huselid, Jackson and Schuler, 2007).
These practices are classified in different ways: Delery and Doty (2012), drawing on three
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dominant modes of theorizing, identified seven key strategic human resource practices,
including career ladders, training, results-oriented appraisal, compensation, employment
security, employee voice, and broadly defined jobs, and used them to develop theoretical
arguments consistent with each of the three perspectives. In addition, Collins and Clark

Recruitment and Selection is a vital process for every successful organization because having
the right staff improves and sustains employee 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.

In the operations of any organization, recruitment and selection is the major function of the
human resource department and recruitment process is the first step towards creating the
competitive strength of organizations. Recruitment process involves a systematic procedure
from sourcing the candidates to arranging and conducting the interviews and requires many
resources and time. Accordingly, Recruitment and selection are conceived as the processes by
which organizations solicit, contact and interest potential appointees, and then establish
whether it would be appropriate to appoint any of them, Sisson (1994).

Recruitment and selection are the two phases of the employment process but there is a
difference between the two. The recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization while selection involves
the series of steps by which the candidates are screened for choosing the most suitable persons
for vacant posts.

Similarly, the basic purpose of recruitments is to create a talent pool of candidates to enable the
selection of best candidates for the organization, by attracting more and more employees to
apply in the organization whereas the basic purpose of selection process is to choose
the right candidate to till the various positions in the organization. The recruitment process is
immediately followed by the selection process, which is the final interviews and the
decision making, conveying the decision and the appointment formalities.

Recruiting is seen as a “positive process of generating a pool of candidates by reaching the

right audience, suitable to till the vacancy” (Leopold, 2002), On the other hand, he stated that
once these candidates are identified, the process of selecting appropriate employees for

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employment can begin. This means collecting, measuring, and evaluating information about
candidates‟ qualifications for specified positions.

Selection therefore, is a process that involves the series of steps by which the candidates are
screened for choosing the most suitable persons for vacant posts.

Recruitment of candidates is the function preceding the selection, which helps create a pool of
prospective employees for the organization so that management can select the right candidate
for the right job from this pool. The main objective of the recruitment process is to expedite the
selection process. Therefore, organizations use these practices to increase the likelihood of
hiring individuals who have the right skills and abilities to be successful in the target job, and
better recruitment and selection strategies result in improved organizational outcomes.

The more effectively organizations recruit and select candidates, the more likely they are to
hire and retain satisfied employees. In addition, the effectiveness of an organization’s selection
system can influence bottom-line business outcomes, such as productivity and financial
performance. Hence, investing in the development of a comprehensive and valid selection
system is money well spent. Recruitment and

Selections are vital processes for a successful organization, having the right staff can “improve
and sustain employee performance” (Petts. 1997).

The basic purpose of recruitments and selection is to create a talent pool of candidates to enable
the selection of best candidates for the organization, by attracting more and more employees to
apply in the organization as well as to choose the right candidate to fill the various positions in
the organization which process must be based on merit or technical knowhow.

The NNPC Towers in Abuja is the headquarters of NNPC. Consisting of four identical towers,
the complex is located on Herbert Macaulay Way, Central Business District Abuja. NNPC also
has zonal offices in Lagos, Kaduna, Port Harcourt and Warri. It has an international office
located in London, United Kingdom.

1.2 Statement of the Problem

Through observation it is found that HRM practices are not or very less implemented, although
it is very important for organizations to implement these practices to make success.
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In recent years, there has been increase in the rate of business failure, closure and at best low
productivity and in most cases; it was due to low level of employee performance. To explain
the situation, various factors have been looked into including competitive strategy in an
organization. Despite the conflict between the stakeholders and the employee, the personnel
have crucial roles to play in ensuring the resolution of impending conflicts between the
management and the employees for the achievement of goals and objectives of the organization.

Unfortunately, some organizations pay more attention on factors like money incentives, and/or
physiological factors without giving much attention to the recruitment and selection of work
force.

Recruitment and selection practice is the only HR practice discussed in this research due to time
factor. Recruitment and selection practice has been a very big issue to employee performance in
industries, most especially in NNPC. When an employee is being recruited and fixed in an
office that does not relate to what He/She studied, it creates room for future damage. This
problem can be resolve if there will be proper recruitment and selection practice, people
working in their field of study and practicing what they studied. Also, if they conducted proper
examination and let them pass through thorough interview, recruitment and selection problems
can be resolved.

1.3 Research Questions

1. Do human resource management practices significantly effect the employee’ performance?

2. What is the effect of compensation practices on employee performance?

3. Is there any form of recruitment and selection policy in the organization?

4. What are the various selection processes in the organization?

5. What is the effect of performance evaluation practices on employee performance?

1.4 Objective of the study

The main objective of this work is to establish the effect of strategic human resources
management practices on employee performance with regard to NNPC ( Headquarters ). The

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relationship that exist between strategic human resources practices on her employees’
performance

Consequently, this study seeks to

1. Examine the recruitment and selection policy.

2. Analyse the recruitment and selection process.

3. Assess the impact of recruitment and selection on the employee performance.

4. Determine whether human resource management practices has an effect on the

performance of employees.

1.5 Research Hypotheses

The research hypotheses are:

H0: Recruitment and selection does not significantly enhance getting competent staff.

H1; Recruitment and selection significantly enhance getting competent staff

H2: Recruitment and selection have no significant impact on employee performance.

H2; Recruitment and selection have significant impact on employee performance.

H3; Promotion practices has a positive relationship to the employee performance

H3; Promotion practices has no positive relationship to the employee performance

1.6 Significance of the Study

Human resource management is the area of core importance for any kind of organization to
make success. The relationship of human resource management practices to the employee
performance is very important for organizations because these are the employees who make
organizations successful. The present study will provide with a usable information and
knowledge for the management of NNPC about the importance of human resource
management practices for getting more involved and productive employees with improved
performances. The study will also contribute valuable information to the existing empirical

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knowledge about the link of human resource management practices to the employee
performance in the developing economy of Nigeria.

1.7 Scope of Study

This study is limited to recruitment and selection part of strategic human resource
management which entails a lot. The research has explored existing studies of focus groups
carried out within the human resource management realm. Academic journals have been
incorporated as vital points of reference during the study.

HRM practices include a lot of variables i.e, training, development, career progression,
recruitment and selection, rewards and incentives, employee benefits, employee welfare,
flexible timing, bonuses etc. But due to time constraints and limited resources we cannot study
the whole list of HRM practices, so the present study focuses on only three HRM practices
which are compensation, performance evaluation and promotion practices. No moderating or
intervening variables are included in the framework. We are concentrating our research to
NNPC headquarter federal capital territory Abuja, so the generalizability of results will also be
limited to this sector only.

1.8 Definition of Terms

Strategic human resource management (SHRM)

SHRM has been defined as the planned pattern of human resource (that is workforce) and
human resource management (that is, functional) deployments and activities intended to
enable the organization to meet organizational goals and objectives (McMahan, Virick and
Wright, 2009).

Compensation

This is the total cash and non-cash payments that you give to an employee in exchange for the
work they do for your business. It is typically one of the biggest expenses for businesses with
employees.

Employee Compensation is the total amount an employee can expect to receive when working
for an organization.

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Employee benefits include various types of non-wage compensation provided to employees in
addition to their normal wages or salaries.

Employee Performance can be defined as the ability of an employee to accomplish his

mission based on the expectations of the organization. Vroom, a motivational theorist alluded
that employee performance is the individual’s natural ability coupled by acquired skill
(Vicher Vroom as cited by Bagul, 2014).

Employee Performance Management is a process for establishing a shared workforce

understanding about what is to be achieved at an organization level. It is about aligning the
organizational objectives with the employees’ agreed measures, skills, competency
requirements, development plans and the delivery of results (Huselid, Jackson and Schuler,

2007).

Employee Selection

This is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people.

Employment is a relationship between two parties, usually based on a contract where work is
paid for, where one party, which may be a corporation, for profit, not-for-profit organization,
co-operative or other entity is the employer and the other is the employee.

Human Capital

This is the collective skills, knowledge, or other intangible assets of individuals that can be used
to create economic value for the individuals, their employers, or their community

Human Resources are the people who make up the workforce of an organization, business
sector, or economy.

Human-Resources Department (HR department) of an organization performs human resource

management, overseeing various aspects of employment, such as compliance with labour law
and employment standards, administration of employee benefits, and some aspects of
recruitment and dismissal.

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Human Resource Management (HRM) is the term used to describe formal systems devised for
the management of people within an organization. The responsibilities of a human resource
manager fall into three major areas: staffing, employee compensation and benefits, and
defining/designing work.

Human Resource Practices are the primary means by which firms can influence and shape the
skills, attitudes, and behaviour of individuals to do their work and thus achieve organizational
goals (Collins and Clark, 2013).

Organization

This is a group of individuals working together to achieve one or more objectives. They are
composed of individuals and groups of individuals. They are oriented towards achieving
collective goals. They consist of different functions.

Performance Appraisal is a regular review of an employee's job performance and overall

contribution to a company.

Professional development is learning to earn or maintain professional credentials such as

academic degrees to formal coursework, attending conferences, and informal learning
opportunities situated in practice.

Promotion

A promotion is the advancement of an employee's rank or position in an organizational

hierarchy system. Promotion may be an employee's reward for good performance, i.e., positive
appraisal.

Recruitment (hiring) refers to the overall process of attracting, shortlisting, selecting and
appointing suitable candidates for jobs (either permanent or temporary) within an organization

Salary is a form of payment from an employer to an employee, which may be specified in an

employment contract.

Staff: the group of people who work for an organization: A person who works for an
organization

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Staff transfer: A transfer is a horizontal or lateral movement of an employee from one job,
section, department, shift, plant or position to another at the same or another place

Staff Training is a program that helps employees learn specific knowledge or skills to improve
performance in their current roles.

Staff development means sponsoring programs that offer training or continuing education to
employees, or help employees plan their own professional growth. Organizations that support
staff development expect to benefit from having employees with greater skills and deeper
expertise

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Chapter two

Review of Related Literature

2.1 Conceptual Issues

Delery and Doty (1996) have identified seven human resource practices considered to be
strategic: career opportunities, formal training systems, appraisal measures, profit sharing,
employment security voice mechanisms, and job definition.

The human resource of an organization is conceptually realized it terms of it playing a

strategic role in the success of the organization. This leads to the field study of strategic human
resource management (SHRM). There is an intersection between strategic management and
human resource management with relatively early studies (Boxall, 1998; Boxall and Purcell,
2000). Wright and Mcmahan (1992) defined strategic human resource management as “ the
pattern of planned human resource deployments and activities intended to enable the firm to
achieve its goals” (1992:298).

2.2 Theoretical framework

The dependent variables of employee performance are influenced by almost each practice of
human resource management. But for the present study, I am choosing one independent
variable which is; recruitment and selection practices. The variable is decided on the basis of a
study conducted for Kano state university lecturers to understand the relationship among
human resource management practices with perceived performance of university lecturers.

An independent variable is defined as one that is antecedent to the dependent variable. The
dependent variable,” performance of NNPC Towers Abuja is the subject of this study and is
the one that is influenced by the independent variables (employee selection and Strategic
recruitment). Company performance is indicated by staff input, number of Management
Staff, number of Contract Staff and number of permanent Staff.

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 Recruitment
practices

Performance

Selection
practices

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

Goal Theory

Goal theory as developed by Latham and Locke (2006) highlights four mechanisms that connect
goals to performance outcomes:

1. They direct attention to priorities,

2. They stimulate effort,

3. They challenge people to bring their knowledge and skills to bear to increase their
chances of success; and

4. The more challenging the goal, the more people will draw on their full repertoire of skills.

This theory underpins the emphasis in performance management on setting and agreeing
objectives against which performance can be measured and managed.

Goals inform individuals to achieve particular levels of performance, in order for them to direct
and evaluate their actions; while performance feedback allows the individual to track how well
he or she has been doing in relation to the goal so that, if necessary, adjustments in effort,
direction or possibly task strategies can be made.

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Goal theory supports the agreement of objectives, feedback and review aspects of performance
management.

Control Theory

Control theory focuses attention on feedback as a means of shaping behaviour. As people

receive feedback on their behaviour they appreciate the discrepancy between what they are
doing and what they are expected to do and take corrective action to overcome it. Feedback is
recognized as a crucial part of performance management processes.

Social Cognitive Theory

It is based on his central concept of self-efficacy. This suggests that what people believe that
they can or cannot do powerfully impacts on their performance.

Developing and strengthening positive self-belief in employees is therefore an important

performance management objective.

2.3 Empirical Review

It has been said that one of the most critical determinants of an organization’s success in global
ventures is the effective management of its human resources (Cascio, 1995). This idea became
even more and more relevant as companies realized that the most valuable asset that they
possess is its employee. Ultimately, an effective management of the human capital can
maximize the knowledge asset value within any enterprise which resides in the minds of the
employee that work in it. Employee’s experiences, background, education, ideas, and creativity
constitute an intangible, valuable asset that can leverage the competitiveness of companies and
enable them to determine how to make the right moves in the organization (Meche, 2001). One
experienced consulting firm points out that in the globalization context, many organizations rely
on knowledge to create strategic advantage. If they fail to do so, they will only waste time to
reinvent what already exists, missing out the amount of expertise already available. They
continue by saying that knowledge management helps companies to share best practices, to
foster successful innovation and to enhance the value of products and services (Skyrme, 2003).

Evidently the complexity of managing global operations increases the need of the use of
technology in the Human Resource Management, but also the increase of technology has helped
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organizations to increase levels of productivity and efficiency. One of the companies who
realized this is Rexel group, a worldwide leader in the distribution of electric materials, whose
growth in the last few years has been increasing mainly through acquisitions. Rexel group is
now present in over thirty countries and employs approximately 25,000 people. The structural
criteria aiming to operations abroad, a high number of subsidiaries and an international
orientation of management define this as a Multinational Corporation (Tixier, 2004).

The Human Resource Management plays a strategic role to structure this group seeking mainly
to harmonize HRM practices to develop any changes between subsidiaries, while providing a
global vision to the head office. In order to accomplish this goal, the group’s human resource
management decided to establish a common Human Resource Information System across all the
subsidiaries’ HR department. The HRIS seeks to provide an efficient coordination mode by
developing reporting tools to give global visibility of all the activities and operational tools to
help give local application. The implementation of this system also should facilitate
convergence, consistency and uniformity of all HR practices and policies. The HRIS has served
its purpose for the MNC and proven not only to be successful, but also necessary to achieve
global and local coordination in HR practices (Tixier, 2004).

2.4 Employee Performance

Employee performance is one of the most factors that affect on the performance of the
organization. The successful organization understands the importance of HR as a critical
factor directly affects and contributes on the performance. The success of any organization
depend on its employees behavior and their decision, although there are many other factors
contribute in that success, such as the organization size, the environment in what it operate
and its activities. Often, human resource management practices are employed to evaluate the
performance of the employee in the organization, and in modern era and highly competitive
climate between the organizations, the tendency to improve employee performance is by
improving the HRM practices. The employee‘s performance is use of knowledge, skills,
experiences and abilities, to perform the assigned mission required by their managers efficient
and effectively. The importance of the employees performance can be in form of several
points such as 1) help to considering the cost of the resources used, 2) a measure of the
quantity and quality of work done, 3) help to survive and excel between the firms, 4) help

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to assess and attain of established performance goals, and finally, 5) increase the
efficiency of the employee performance helps to make the right decisions. Kaplan explained
the main methods of evaluating employee performance based on: 1) employee attributes
which confirm characteristics or qualities important to the firm, 2) employee behaviors
which are widely used for evaluating or defining employee behaviors necessary to complete a
job successfully, and, 3) employee achievements which show the extent to which specific
objectives or aims have been met, exceeded, or not met.
2.5 Performance evaluation
According to (mullins, 1999), the process of performance management includes continous
evaluation of employee’s behaviours and performance. Employees should clearly know that
what is expected of them and how their performance will be measured. An ideal and formalized
appraisal scheme should measure properly, the individual’s performance, highlight the
potential of employees and determine the future needs for training in development. The
effective appraisal practice should improve the performance of employees in future. It can also
suggest for the rewards and career development of employees. The system which only
measures the performance of employees once in a year without providing a continous feedback
and coaching is just a performance appraisal not the complete performance management
system because performance management is much more than only measuring the performance
(Halachimi, 2005). Performance appraisal is an obligatory process in which a rater measures
the employee’s trait/behaviours individually and described in a specific time period and the
record is maintained by the organization (Coen and Jenkins, 2000).
2.6 Recruitment practices
Hiring managers should focus on recruiting activities aiemed at attracting the right candidates
for the job. Recruiting activities can include internal efforts, college hiring fairs, technical and
vocational events, and traditional newspaper advertisements. Based on the needs of current
openings and forecasts for future needs, a hiring manager will need to direct efforts toward the
best option for recruiting the right candidates. For instance, focusing on college hiring fairs and
traditional newspaper advertisement is appropriate for entry-level positions with your
company.
2.7 Selection practices

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Selecting the right candidate requires identifying the specific skills, knowledge and qualities
you seek and desire in an employee. This can pertain to the necessary skills and knowledge for
the position itself, such as a specific degree or certification, and the desired personal qualities,
such as a preference to hire employees with good moral and ethical standards. Other important
parts of the selection process include conducting any necessary aptitude tests and conducting a
thorough background check to ensure the employee meets the basic qualifications of both the
position and the company.
2.8 promotion practices
Promotion always go with a salary increase, either it is done within a grade or the higher grade.
A continuous process which is based on the length of service and professional “competency” is
adopted at the time of promotion to higher step in the job within a grade promotion. It is or
maybe “continuous” in which test, review or competition is given which entitle for simple
decision or selection (Hdiggui, 2006).
2.9 The Concept of Recruitment and Selection
Recruitment is the process to fully fill the offered work positions in sufficient
number and qualities of the applicants, as well as to meet the expectations and
requirements of the organization. Recruitment is using the analysis of the job in order to
select and identify the needs and requirements of the organization, and it's related to the
adopted strategy by the organization through human resource management planning.
Organization chooses carefully the policy of recruitment due to what is reflecting from the
general strategy of the organization. There are many factors that affect on the recruitment
process and can be divided to internal and external factors. The restrictions that imposed by
the government and the labor market limit the improvement process of recruitment policies
and it considered as the main external factors. Organization's policy and the vision of the
organization can be considered as an indicator to the efforts of the recruitment and it‘s an
example of the internal factors. As a professional HR manager, it is vital to have the
competency and ability to select appropriate employees and place them in suitable work
positions. Selection is an important element in HR functions, because the employee‘s
selection has close relationship and connection with the organization's development.
Selection is collecting the information about the applicants to decide who is fit and should be
employed each work position.

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According to Costello (2006) recruitment is described as the set of activities and processes
used to legally obtain a sufficient number of qualified people at the right place and time so
that the people and the organization can select each other in their own best short and long
term interests. In other words, the recruitment process provides the organization with a pool
of potentially qualified job candidates from which judicious selection can be made to fill
vacancies. Successful recruitment begins with proper employment planning and forecasting.
In this phase of the staffing process, an organization formulates plans to fill or eliminate
future job openings based on an analysis of future needs, the talent available within and
outside of the organization, and the current and anticipated resources that can be expanded to
attract and retain such talent.

Also related to the success of a recruitment process are the strategies an organization is
prepared to employ in order to identify and select the best candidates for its developing pool
of human resources, Organizations seeking recruits for base-level entry positions often
require minimum qualifications and experiences. At the middle levels, senior administrative,
technical and junior executive positions are often filled internally. The push for scarce, high-
quality talent, often recruited from external sources, has usually been at the senior executive
levels. Most organizations utilize both mechanisms to effect recruitment to all levels.
Jovanovic (2004) said recruitment is a process of attracting a pool of high quality applicants
so as to select the best among them. For this reason, top performing companies devoted
considerable resources and energy to creating high quality selection systems. Recruitment
and selection process are important practices for human resource management, and are
crucial in affecting organizational success Jovanovic (2004).

Due to the fact that organizations are always fortified by information technology to be more
competitive, it is natural to also consider utilizing this technology to re-organize the
traditional recruitment and selection process through proper decision techniques, with that
both the effectiveness and the efficiency of the processes can be increased and the quality of
the recruitment and selection decision improved.

Additionally, recruitment is a positive process i.e. encouraging more and more employees to
apply whereas selection is a negative process as it involves rejection of the unsuitable
candidates. Recruitment also, is concerned with tapping the sources of human resources
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whereas selection is concerned with selecting the most suitable candidate through various
interviews and tests, and finally, there is no contract of recruitment established in recruitment
whereas selection results in a contract of service between the employer and the selected
employee.

Recruitment of candidates is the function preceding the selection, which helps create a pool
of prospective employees for the organization so that the management can select the right
candidate for the right job from this pool. The recruitment process is immediately followed
by the selection process i.e. the final interviews and the decision making, conveying the
decision and the appointment formalities, Wanous, J. P (1992) .

Recruitment is the process of identifying and attracting a group of potential candidates from
within and outside the organization to evaluate for employment. Once these candidates are
identified, the process of selecting appropriate employees for employment can begin. This
means collecting, measuring, and evaluating information about candidates‟ qualifications for
specified positions. Organizations use these practices to increase the likelihood of hiring
individuals who have the right skills and abilities to be successful in the target job, Leopold
(2002).

2.10 The Effect of Recruitment and Selection on Employee Performance

Recruitment and selection are integrated factors that affect the performance of the employee.
Recruit and select appropriate employee for suitable position of work have close
relationships and connections with the organization's development. Many studies have found
positive relationship between recruitment and selection and employee performance. Huselid
stressed that by adopting best practices in recruitment and selection, it allow the good quality
of skill in the organization. He also stressed on importance of training as complement of
selection practices through which the organizational culture and employee behavior can be
aligned to produce positive results. Tessema and Soeters the extent of HR practices affect
performance at the employee level in Eritrea‖. Since performance is a multi-faceted and
complicated concept, HRM outcomes were used as mediating factors between HR practices
and employee performance and the result was positively with the relationship between
recruitment and selection and performance at the employee level. Alnaqabi identified HR
practices and other factors such as job satisfaction, organizational commitments and
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leadership practice that affect employee performance in UAE with emphasis on public
organizations. Alnaqabi showed the positive impact of recruitment and selection toward the
performance of the employee. A related study by Smith and Lynch , showed that
recruitment and selection is the first step in employee evaluation process. This is linked with
identify, attract and select the appropriate applicant to meet the requirements of the jobs in the
organization. This process is important to make sure about the outcomes of the recruitment
and selection process in the organization. Qureshi and Ramay stated that HRM practices are
positively and significant linked with the performance of the employee and training and
selection is the most factor affecting on the employee performance between all the others
practices. Based on the previous mentioned studies it can be safely assumed that employee
performance is positively affected by recruitment and selection.
2.11 THE RECRUITMENT AND SELECTION PROCESS

A number of recent studies have suggested that some recruitment processes are more
effective than others in terms of the value of the employees recruited.

Miyake, (2002) indicated that while advertising is usual for job vacancies, applicants were
sometimes recruited by word of mouth, through existing employees. Besides being cheaper,
the “grapevine” finds employees who stay longer (low voluntary turnover) and who are less
likely to be dismissed (low involuntary turnover). People recruited by word of mouth stay
longer because they have a clearer idea of what the job really involves. Miyake, (2002)
reviewed five studies in which average labour turnover of those recruited by advertising was
51 per cent. The labor turnover for spontaneous applicants was 37 per cent and turnover for
applicants recommended by existing employees was 30 per cent. One hypothesis proposed to
account for this was the “better information” hypothesis. It was argued that people who were
suggested by other employees were better and more realistically informed about the job than
those who applied through newspapers and agencies. Thus, they were in a better position to
assess their own suitability. Better informed candidates are likely to have a more realistic
view of the job, culture of the organization and job prospects.

Recruiting is seen as a “positive process of generating a pool of candidates by reaching the

“right audience”, suitable to fill the vacancy” (Leopold, 2002), is the process of searching the
candidates for employment and stimulating them to apply for jobs in the organization”.
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Leopold (2002), states further that the first step of recruitment is to put forward a job analysis
which is important for both the organization and the candidates. If a job is not needed in an
organization, recruitment and selection of a candidate is not necessary.

However, if the job is needed, a job description usually consists of the job title, where the job
is located, what the key purpose of the job is, what are the main duties that the job entails and
what role it plays in the success of the organization, is compiled.

In agreement with Leopold, Wanous (1992) , highlights that the steps involved in the formal
recruitment and selection process are often fairly standard, but there are a number of factors
to consider along the way. Initially, the recruiting manager should draw up a job description
and person specification for the vacant role if these are not already available, and steps are;

Step 1: Identify vacancy

Step 2: Prepare job description and person specification, Step 3: Advertising the vacancy

Step 4: Managing the response

Step 5: Short-listing

Step 6: Arrange interviews

Step 7: Conducting interview and decision making

The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the
recruitment strategic advantage for the organizations. Recruitment process involves a
systematic procedure from sourcing the candidates to arranging and conducting the
interviews and requires many resources and time, Sisson (l994).

Similarly, Hall and Torrington (1998), states that a general recruitment process is as follows:
The recruitment process begins with the human resource department receiving requisitions
for recruitment from any department of the company. These contain: Preparing the job
description and person specification. Locating and developing the sources of required number
and type of employees (Advertising etc.).

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Short-listing and identifying the prospective employee with required characteristics as well as
arranging the interviews with the selected candidates, conducting the interview and decision
making. The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the appointment
formalities.

2.12 THE SOURCES OF RECRUITMENT

Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the organization
itself (like transfer of employees from one department to other, promotions) to fill a position
are known as the internal sources of recruitment.

Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known
as the external sources of the recruitment, Schmidt and Hunter (1998).

They further explain that internal recruiting seeks to fill vacancies with current employees. It
is the most common approach; Notify present employees and encourage them to apply for
positions in which they are qualified, ask present employees for referrals; often those referrals
are other current employees. According to them internal recruitment is advantageous in a
sense that it increases morale, retains employees, attendance and work records are known,
and less training necessary. However, they say is disadvantages because it encourages lack of
new ideas, may settle for less qualified to avoid hurt feelings, and bring ripple effect creating
other vacancies.

In addition, Schmidt and Hunter (l998) demonstrate also that external recruiting may be
effective in certain situations it includes the ability to attract the most qualified individuals, a
reduction in resentment, the ability to bring in new ideas, and recruitment from minority
groups but to the contrary it calls for the need for more training, the chance of losing current
employees to new opportunities elsewhere, and the risk of the unknown regarding the new
employee.

External Recruiting Resources can be used to locate, identify, and attract qualified applicants,
and they include; Newspaper ads, specialized journals and publications, Professional
organizations, Educational institutions, Public employment services, Private employment
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agencies, Labor unions and trade associations, Walk-ins and mail-ins, and The Internet as a
new resource ,Taylor and Collins (2000), and are the present Employees , Unsolicited
Applicants , Educational and Professional Institutions , Public Employment Offices , Private
employment Agencies, Employee Referrals , Help wanted Advertising , Walk-Ins , Schmidt
and Hunter(l998).

In their literature Taylor and Collins (2000), and Schmidt and Hunter (1998), they agree that
a combined Approach is probably the most common to make the most of the advantages of
each, and further highlights the factors that influence both sources.

Factors affecting recruitment Taylor and Collins (2000), and Schmidt and Hunter (1998).
From the above, the sources of recruitment and selection are through the internal and external
sources. However recruitment and selection is faced with lots of challenges.

2.13 CHALLENGES OF RECRUITMENT AND SELECTION

According to Kaplan and Norton, (2004) a common problem in recruitment and selection is
poor HR planning. Rigorous HR planning translates business strategies into specific HRM
policies and practices. This is particularly so with recruitment and selection policies and
practices. The key goal of HR planning is to get the right number of people with the right
skills, experience and competencies in the right jobs at the right time at the right cost.
Detailed and robust recruitment and selection policies, such as recruitment and selection
procedures, assessing criteria, talents auditing and processing the information about the labor
market are important in recruiting and deploying appropriate employees at the right time. Past
research shows that the competency level of HR managers has a major influence on
recruitment and selection and experienced HR experts within the HR department will not
only shorten vacancy duration, but also improve the quality of the applicants. Moreover,
effective recruitment and selection is possible only if there is a dedicated and competent HR
team, Kaplan and Norton (2004).

In the strategy implementation phase, the extent of recruitment and selection strategic
integration can be gauged through four distinctive indicators. These indicators are: the timely
supply of an adequately qualified workforce, effective job analysis and descriptions, effective
selection, and the involvement of line managers in the recruitment and selection practices. A

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key source of uncertainty in the business strategy implementation is whether there is a
timely supply of adequate qualified people, and to a great extent this uncertainty
involves the quality of employees. For instance, a firm might decide to leverage a different
human capital pool in terms of skills and education level than its rival films as a competitive
strategy even within the same industry to develop specific capabilities or to develop a HR
process advantage.

An organization can successfully eliminate this uncertainty if its recruitment and

selection policies and practices are strategically integrated with business, Whitmell
Associates (2004). Effectively conducting job analysis and targeting right potential
candidates ensures a good match between applicants and the jobs. Argument has been given
that under qualified employees may not able to effectively perform their job positions due to
lack of knowledge and competencies, while on the other hand over qualified employees tend
to experience less job satisfaction due to their higher qualification than a desired level for a
given job. For every job in the organization, a thorough job analysis, which includes job
description and job specifications, is necessary and based on this, an appropriate selection
criteria is vital. The job description provides indications of the duties to be undertaken,
and the job specification usually prescribes relevant personal qualities and attitudes as
well as skills and knowledge required for the job, Johnston (1999).

A range of methods, such as application forms, interviews, formal tests, references,

assessment centers and official transcripts are used by firms in the selection process.

A firm needs to choose a method that is most appropriate to the job positions. HR experts
generally drive the staffing process and the purpose of the staffing is to fulfil the requirements
of business, and the skill levels presented by each new recruit is likely to be judged better if
the line managers are involved in the recruitment and selection process. Dess and Jason
(2001) suggest that in business strategy implementation the involvement of line managers in
the entire staffing process (i.e., drafting of job descriptions, setting selection criteria and
being on the panel of recruitment) is vital for ensuring recruitment and selection to meet
business needs. In other words, the line managers are the owner of the recruitment and
selection process along with HR playing a facilitator role.

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Taking heredity and environment as bases for granting or denying access to an organization
and job is now legally unacceptable. The argument presented by Blackford and Newcomb
(2002), particularly in relation to skin, colour and its predictive properties, could be seen as a
product of its time and place, However, it is important to note that the study is based on what
was then seen as a sound scientific set of ideas and tests, which proved the premises
underlying the suggested practice.

Recruitment may be conducted internally through the promotion and transfer of

existing personnel or through referrals, by current staff members, of friends and family
members. Where internal recruitment is the chosen method of filling vacancies, job openings
can be advertised by job posting, that is, a strategy of placing notices on manual and
electronic bulletin boards, in company newsletters and through office memoranda. Referrals
are usually word-of-mouth advertisements that are a low-cost-per-hire way of recruiting.
Internal recruitment does not always produce the number or quality of personnel needed; in
such an instance, the organization needs to recruit from external sources, either by
encouraging walk-in applicants; advertising vacancies in newspapers, magazines and
journals, and the visual and/or audio media; using employment agencies to “head htu1t”;
advertising on-line via the Internet; or through job fairs and the use of college recruitment.

2.14 THE SELECTION TECHNIQUES

Organizations employ a variety of selection techniques, and statistical theory is used to give
credibility to techniques that attempt to measure people. Organizations also need to consider
reactions of applicants to selection methods and an important factor is the perception of fair
treatment, Gatewood and Field( 1994). Tl1e interview is the oldest and most widely used of
all the selection techniques, along with application forms and letters of reference, referred to
as „the classic trio‟.

Once applications have been received for the role, the selection process should he clear and a
timetable drawn up, There are a number of methods a company can use at the selection stage.
These include identifying whether the candidate has the required skills and experience from
their application or CV, face-to-face interviews, assessment centers and completion of case
studies or presentations. Many companies like to conduct initial telephone interviews to draw
up a short list of candidates, Dipboye (1992).
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Furthermore, Schmidt and Hunter (1998), states a good selection requires a methodical
approach to the problem of finding the best matched person for the job Selection Process;
Preliminary Interview, Selection Tests, Employment Interview, Reference and Background
Analysis, Physical Examination, Job Offer and Employment Contract, and the stages in
Selection Process include:

Stage 1: Screening Of Application Forms.

Stage 2: Tests--Intelligence, Aptitude, Technical, Psychometric, Ability, Interest. Stage 3:

Selection Interview.

Stage 4: Selection Decision

Lastly, according to Dipboye (1992), selection methods vary between applications and
resumes used to select qualified applicants which both include written documents that can be
used to determine if a candidate meets basic job requirements, employment tests used to test
job skills, personality, or written intelligence/aptitude; they must be reliable and valid. Others
are personal interviews used to compare information on the application, and usually allow a
chance to discuss the job face-to-face; the interviewer can ask questions, but so can the
applicant as well as reference checks that provide additional information about the applicant.

2.15 IMPORTANCE OF RECRUITMENT AND SELECTION

The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the
recruitment strategic advantage for the organizations, Phillips (1998).

In today‟s rapidly changing business environment, a well-defined recruitment policy is

necessary for organizations to respond to its human resource requirements in time.

Therefore, it is important to have a clear and concise recruitment policy in place, which can
be executed effectively to recruit the best talent pool for the selection of the right candidate at
the right place quickly Petts, (1997).

The Purpose and Importance of Recruitment are given below by Dessler (2000): Help
increase the success rate of selection process by decreasing number of visibly under qualified
or overqualified job applicants, Increase the pool of job candidates at minimum cost, Create a
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talent pool of candidates to enable the selection of best candidates for the organization,
Attract and encourage more and more candidates to apply in the organization, Recruitment is
the process which links the employers with the employees, Determine present and future
requirements of the organization in conjunction with its personnel planning and job analysis
activities, and Help reduce the probability that job applicants once recruited and selected will
leave the organization only after a short period of time. Others according to him are; Meet the
organizations legal and social obligations regarding the composition of its workforce.

Begin identifying and preparing potential job applicants who will be appropriate candidates,
and Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants.

2.16 THE RELATIONSHIP BETWEEN RECRUITMENT AND SELECTION, AND

EMPLOYEE PERFORMANCE.

The effective recruitment and selection of employees is a fundamental HRM activity, one that
if managed well can have a significant impact on employee performance as well as lead to a
more positive organizational image, recruitment and Selection are vital processes for a
successful organization, having the right staff can improve and sustain employee
performance.

Also, effective recruitment and selection is central and crucial to the successful functioning of
the organization as it depends on finding people with the necessary skills, expertise and
qualifications to deliver the organization’s strategic objectives and the ability to make a
positive contribution to the values and aims of the organization, Sisson (1994).

0n the other hand, better recruitment and selection strategies result in improved
organizational outcomes. The more effectively organizations recruit and select candidates, the
more likely they are to hire and retain satisfied employees. In addition, the effectiveness of an
organization’s selection system can influence bottom-line business outcomes, such as
productivity and financial performance. Hence, investing in the development of a
comprehensive and valid selection system is money well spent Hall and Torrington (l998).

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

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

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

2.17 THE RELEVANT PERFORMANCE DIMENSIONS;

The performance standards or expectations associated with different performance levels;

How situational constraints should be weighed (if at all) when evaluating performance;

The number of performance levels or gradients;

The extent to which performance should be based on absolute or comparative standards.

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There are different views on what performance is. It can be regarded as simply the record of
outcomes achieved. On an individual basis, it can be a record of the person‟s
accomplishments.

Performance is something that the person leaves behind and that exists apart from the
purpose. Performance could be defined as the outcomes of work because they provide the
strongest linkage to the strategic goals of the organization, customer satisfaction, and
economic contributions. Also performance is about outcomes but the concept is linked to the
idea of a balanced scorecard.

Fletcher (2001) mentions, contextual performance deals with attributes that go beyond task
competence and that foster behaviours that enhance the climate and effectiveness of the
organization.

The Oxford English Dictionary defines performance as:„The accomplishment, execution,

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

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

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

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

This is the mixed model of performance management that covers competency levels and
achievements as Well as objective setting and review. And it is this model that research
(Armstrong and Baron, 2004) has shown to be the one that is now interesting many

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organizations. Performance can be said to be more concerned with measuring performance.
Performance is the behaviour or action relevant to the attainment of the organization’s goals
that can be scaled, that is, measured.

2.18 PURPOSE OF PERFORMANCE MANAGEMENT

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

2.19 Strategic Recruitment and Selection Practices and Employee Performance

A study conducted by Waiganjo, Mukulu and Kahiri (2013) showed that selective resourcing
which is a key component of strategic recruitment and selection, influenced firm
performance of corporate organizations in Nigeria in the manufacturing sector. The researcher
also found that recruiting and selecting the right employees increased employee performance
and effectiveness, and contributed to employee retention in the organization. Chen and
Huang (2009) on the other hand, examined pre-employment tests as a key component of
selection and the researcher found out that when employed, these tests showed that selected
employees stayed with the organization longer and had the potential to perform.

Passing employment tests gave an applicant a stronger sense of belonging and increased the
degree of commitment to the organization when implemented as indicated by a study
conducted by Huselid and Becker (2011). The Sabwami, Gachunga and Kihoro (2014) study
also showed a possible indirect link between strategic recruitment and selection and
employee performance was the forging of internal link between employer and employee
which then created the right culture for employee performance. Paul and Anantharaman
(2003) note that a strategic selection and recruitment process ensured that the employees with
the right qualifications were identified and selected, and this led to production of quality
products and services by employees.

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A stringent strategic recruitment and selection system gives selected employees a sense of
elitism which imparts high expectations of performance, and conveys a message of their
importance to the organization (Pfeffer, 2007). Strategic recruitment and selection is about
matching human resource to the strategic and operational needs of the organization where it
keeps the number and quality of employees required (Sabwami et al., 2014). Mutembei and
Tirimba (2014) in their study on staffing process, found that strategic recruitment and
selection positively correlated to employee performance as it brought to the organization
employees who matched the abilities of the present human resource and fitted into the
existing interpersonal structure, which in the long run lowered training costs. Chand and
Katou (2007) demonstrated that strategic recruitment and selection was strongly correlated
with profitability and suggested that management of an organization should focus on those
methods of recruitment, policies, and selection tests for improved employee performance.

2.20 Existing Gaps for the Study

Technology has revolutionised the way we access information, and thereby the way we do
business. Regardless of industry, every company and every industry can now be digital — and
has the potential to be global. An abundance of information makes it possible for companies to
segment and personalise products and services. It also enables companies to quickly move into
other new spaces of innovation.

These changes will have a deep impact on the workplace. The way workforces are structured
and organised will have to change fundamentally, leading to many knock-on effects in human
capital management. Thus organisations will need to rethink the way they hire, engage,
develop, reward and lead their workforces.

HR can navigate this new landscape by taking advantage of the advancement in technology –
most notably by utilising AI and big data to open up opportunities for strategic value creation.

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