Recruitment and Its Impact on Organizational Performance at Al-Rayan Bank - Research Paper Example

Thesis topic: Recruitment and Selection and their impact on organizational performance: A case study of Al-Rayan Bank. Proposal The establishment of effective recruitment policies is often considered as a key criterion for the success of organizations in the global market. In this study, the same area would be on consideration to see how organizations find recruitment practices significant for their overall performance of the system and what relationship recruitment stands for organizational performance. Al-Rayyan Bank is one of the leading banks based in Qatar. It seems that in particular organizations HR managers are highly based on their own perceptions for evaluating the appropriateness and suitability of candidates for a particular position. In this way, the bank’s recruitment process can negatively be perceived, as of its failure in promoting diversity, equality and fairness. This problem could negatively affect the bank’s image in the market but also its performance since employees who are not appropriately skilled could not respond to the needs of their position. Employers use different selection methods to recruit and select appropriate people for the organization, because it is not possible to extract maximum output from the employees if they are not hired according to the right selection process. Positivistic paradigm will be adapted for the research that supports quantitative research approach. The present research will apply regression analysis to evaluate questionnaire. Moreover, Cronbach Alpha will be used for testing validity and reliability of the responses, which will be collected from the employees of the bank. For evaluating interview with HR manager, Thematic Analysis will be used by the research for making the result more authentic. The sample size of the questionnaire will be 50, and it will be based on simple random sampling. On the other hand, the HR manager of Masraf Al Rayan bank will be interviewed to find out the relationship of recruitment and selection process with performance of the bank. 2 Chapter 1: Introduction 2.1 Background The establishment of effective recruitment policies is often considered as a key criterion for the success of organizations in the global market. In highly competitive industries, such as the bank industry, banks tend to use recruitment processes, which have been successfully used by competitors. Still, there are banks that prefer to keep their recruitment process simple, probably believing that the ability of each employee to respond to the needs of his position can be only proved in practice, i.e. after exposing the employee to daily organizational problems. It has been seen from past empirical studies that financial institutions like banks consider recruitment to be the most significant area of concern (Taylor & Collins, 2000). They consider it as an area, which puts a major impact on the performance of the bank system. With best recruitment practices, banks are able to select and train best employees who become central organs on which organizations could rely on the long-term basis. In this study, the same area would be on consideration to see how organizations find recruitment practices significant for their overall performance of the system and what relationship recruitment stands for organizational performance (Clark, 2001). Company Profile Al-Rayyan Bank is one of the leading banks based in Qatar. The organization is present with a standardized setting where the idea is to optimize their employee recruitment and selection methods in order to improve overall performance of the system. The issue is there with Al-Rayyan Bank where top managers think that recruitment holds a significant impression for the performance of the bank. On this node, they have decided to improve their recruitment practices to see how much impact it could develop for overall organizational performance. This would be part of analysis in the study to understand HRM practices and their influence on organizational work performance. Research Objective Following will be research objectives of this research: To understand relationship of recruitment practices and organizational performance. To analyze and comprehend Al-Rayyan Bank’s recruitment structure, to get evolved for the organizational performance. To determine successful factors which are required to be considered for the success of Al-Rayyan Bank. To find out shortcomings of current recruitment and selection process of Al-Rayyan Bank. To examine the role of HRM functions in achieving organization’s primary objectives. 3 Problem Definition Al-Rayyan Bank is a major competitor in Qatari bank industry. The bank’s success in the local market has been highly related to the quality of its customer services. However, it seems that in the future the bank will have to face severe challenges as of its recruitment process. Until today, the bank’s recruitment process has been quite simple, incorporating two key phases: a recruitment event and an interview. There are distinctively three positions, which the bank recruitment offers, managerial, administrative and general respectively. On the review of bank’s recruitment process, all the above three positions do not fall in the right setting, as the bank holds a simple recruitment process which is not able to identify skilled candidates at the time of selection. Indeed, as described in the bank’s website the recruitment process of the bank consists of the following sub-processes: the candidate who is interested in applying for a particular position comes to one of the bank’s recruitment events; the candidate needs to be appropriately dressed and have a CV. In each recruitment event, candidates meet bank’s HR managers and give their CVs for accessing their bio data. At the next level, successful candidates are asked to pass an interview. According to recruitment policy of the bank, candidates are not allowed to present any references at the first phase of selection. Another thing which recruitment practice lacks is that the bank do not provide criterion of selection for which the employee finds it difficult to judge and meet to the requirements of the interview. It seems that in particular organizations HR managers are highly based on their own perceptions for evaluating the appropriateness and suitability of candidates for a particular position. In this way, the bank’s recruitment process can negatively be perceived, as of its failure in promoting diversity, equality and fairness. This problem could negatively affect the bank’s image in the market but also its performance since employees who are not appropriately skilled could not respond to the needs of their position. 4 Problem Statement How do recruitment practices affect Al-Rayyan bank organizational performance? 5 Research Questions The research aim and objectives of the study comprise the following research questions, which need to be answered on the later aspect of the study: Q1. What are the current recruitment and selection practices at Al Rayyan Bank? Q2. What are the shortcomings of the current recruitment and selection at al Rayyan bank? Q3. What are the success factors to achieve the desired organizational performance at al Rayyan Bank? Q4. What role does HRM function plays in achieving the organizational performance objectives? Q5. What is the relationship between recruitment and selection and organizational performance? Chapter 2: Literature Review Theoretical Framework Becker (1964) presented Human Capital Theory in which he has explained operating capabilities of the employees working for the organizations. The knowledge, abilities, and expertise of the employees are responsible for building strong value because they can increase overall productivity of different operations of the organizations. The human capital is extremely valuable in the marketplace but it is only recognize by cooperation of other people. Therefore, organizations make investment in the human capital so they can be able to extract maximum output in the future. The recruitment and selection process is a component for building human capital because without proper recruitment and selection of the employees, the organizations cannot build human capital that is valuable for their operations. Jensen and Meckling (1976) presented Agency Theory in which focus is given to the contracts between parties. There are two parties involved in this contract in which one is known, as Principle that hand over work whereas other is an Agent who works for the principle. This theory addresses different issues related to agency as the main issue between relationships of agency is diverse objectives and it is possible for the principle to evaluate agent’s performance all the time. This theory is helpful for the organizations because different suggestions are provided for monitoring behaviour for the contracts. The Five Fold Grading System (1954) presented by Munro Fraser suggested formal criteria for the organizations to make a grading system in which abilities of the employees can be enhanced, and organizations can make more effective recruitment and selection. The characteristics of Five Fold System include “Impact on other, Acquired qualifications, Innate abilities, Motivation, and Adjustment”. If organizations are able to implement this model in their recruitment and selection process, then performance of the organization can be enhanced with help of this model. Past studies conducted by Holbeche (2012), Jackson (2011), Nankervis, Compton and Morrissey (2006), and York (2009) will be included in this research for supporting primary and secondary data. HRM Practices In today’s global business order where the core challenge is of market competition, organizations rely on key resources to come out well in such market expectations. Their high value targets force them to improvise their viable resources like manpower for increasing the performance ratio in good aspect of time. This has been seen in latest organization studies, that human resource is the most vibrant asset for organizations striving in global business order. In China, labour has been playing a fundamental role in companies’ successes, which is why Chinese organizations keep employees to their highest consideration (Asif, 2010). In attaining competitive advantage small or medium enterprises like banks rely on HRM practices to improve their organizational performance. The success of the organizations is dependent on the HRM policies and this is the reason that companies strives hard to improve their HRM policies (Andrew, 2009). This has been seen in recent times where banks have started to concentrate on human resource management, as they consider it a composite element to improvise their work performance (Clark, 2001). Recruitment and Selection The process of recruitment and selection is important for the organizations as the performance of the employees are dependent on proper recruitment and selection process. It has been stated by the scholars that selection of employees is not only dependent on the vacancy, but it is aimed to select employees that can boost the performance of the firm. The recruitment and selection is a basic part of HRM activities and HR managers try their best to recruit and select best employee for the organization (Taylor & Collins, 2000). Impact of Recruitment and Selection on Organizational Performance Recruitment and selection plays an integral part in organizing and managing people on regular basis. Most of the organization in recent time perceives their employees as a source of competitive advantage therefore; the process of recruitment and selection has become more significant (Clark, 2001). Employers use different selection methods to recruit and select appropriate people for the organization, because it is not possible to extract maximum output from the employees if they are not hired according to the right selection process. Motivating employees is also necessary for improving their problems because if employees are not motivated, then they cannot give their maximum output (Ajai, 2009). It has observed in the past few decades that human behaviour is responsible for influencing employers to hire people according to their preferences, but standard of recruitment and selection has increase after realizing the importance of right recruitment and selection for the organization (Rioux & Bernthal, 1999). There is a positive correlation between recruitment and selection, and organizational performance. Conceptual Framework The present research work is based on the studies conducted by Sohail, Tanveer, and Muneer (2011) because they have tried to find out human resources practices as a performance tool for the organizations. Recruitment and selection process was evaluated with help of a questionnaire in which regression analysis was applied. The result of their research indicated that recruitment and selection process is positively correlated with organizational performance therefore the present research work is aimed to find out positive relationship of recruitment and selection with performance of the organizations. Chapter 3: Methodology Research Approach Positivistic paradigm will be adapted for the research that supports quantitative research approach (Creswell 2009). The quantitative research approach is useful for the researchers when variables of the research are compared with each other. The research hypothesis is accepted or rejected in the quantitative research based on different tools and techniques. The researcher will use deductive research approach in which data is presented in more generalized form (Marlow and Boone 2011). Data Collection The primary data of this research will be collected with the help of a survey questionnaire and interview will be conducted from three managers of the bank that are designated in HR department of Al-Rayyan Bank. Interview will be taken from the HR manager Mr.XYZ, Deputy HR manager Mr.XYZ, and junior HR manager Miss XYZ. The questionnaire will be based on Likert scale in which 14 questions will be asked from the respondents in two sections. The first section will contain questions related to recruitment and selection process, whereas questions related to organizational performance will be asked in the second section. Both open and close-ended questions will be asked from the employees of Masraf Al Rayan bank. The interview will be conducted with managers of the bank in which different questions related to recruitment and selection process will be asked. The aimed of the interview is to find out whether bank has been able to achieve its objectives with help of recruitment and selection process. The secondary data will also be collected for the present research that will help researcher to support primary data. Data Analysis The present research methodology will be similar to the study conducted by Sohail, Tanveer, and Muneer (2011). Regression analysis was used to evaluate questionnaire of that previous research (Sohail, Tanveer, & Muneer, 2011). Similarly, the present research will apply regression analysis to evaluate questionnaire. Moreover, Cronbach Alpha will be determined for testing consistency and reliability of the responses. For evaluating interview with HR manager, Thematic Analysis will be used by the research for making the result more authentic. Sample Size The sample size of the questionnaire will be 50, and it will be based on simple random sampling. Different employees working in different departments of the bank will be randomly selected for sampling. On the other hand, three managers of Al-Rayyan Bank working in the HR department will be interviewed to find out relationship of the recruitment and selection process with performance of the bank. Gantt chart 1 week 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9 week 10 week 11 week 12 week Initial Research Formulating Theoretical Framework Deciding upon Methodology Preparation of Proposal Ethical Approval Preparation of Questionnaire and Interview Questions Conduct Survey and Interview Chapter 2 Write up Chapter 3 Writer up Chapter 1 Write up Chapter 4 Write Up Chapter 5 Write up Submission of First Draft References Adai, J. (2009) Leadership and Motivation: The Fifty-Fifty Rule and the Eight Key Principles of Motivating Others. London: Kogan Page Andrews, S. (2009). 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Advances in Culture, Tourism and Hospitality Research. UK: Emerald Group Publishing Limited. Conley, Ch. (2007) Peak: How Great Companies Get Their Mojo from Maslow. New York: Jossey-Bass. Deci, E. et al. (1985). Intrinsic Motivation and Self-Determination in Human Behavior. New York: Plenum. Derek, T. (2011). Human Resource Management. Essex: Pearson Education Limited. Elliot, P. (1997). Job Satisfaction: Application, Assessment, Causes, and Consequences (Advanced Topics in Organizational Behavior). Lose Angeles: Saga Publications, Inc. Ennis et al (2008). Practicing Hospitality: The Joy of Serving Others. Wheaton: Crossway. Geen, R. (1994). Human Motivation: A Psychological Approach. New York: Wadsworth Publishing Halepota, J. (2009). Job Satisfaction: The Role of Manager and Attitude of Employee. Retrieved June, 29, 2012 from http://www.brunel.ac.uk/__data/assets /file/0017/90521/phdSimp2007JamshedAdilHalepota.pdf Hanks, K. (2004). How to Motivate Others to turn them into Super Performers? New Delhi: ParamaOffsetters. Hayes, D. &Ninemeir.J. (2007). Operations Management. New Jersey: John Wiley & Sons, Inc. Herzberg, F., et al (1959). The Motivation to Work. New York: John Wiley. Kandampully, J. et al (2000). Service Quality Management in Hospitality, Tourism and Leisure. New York: The Haworth Hospitality Press. Koontz, H.&Weihrich, H.(2007). Essentials of Management: An International Perspective. New Delhi: Tata McGraw-Hill Publishing Company Limited. Latham, G. (2005). Work Motivation Theory and Research at the Dawn of the Twenty-First Century. Retrieved from: http://home.ubalt.edu/tmitch/642/Articles%20syllabus/Latham %20%26%20Pinder%20wk%20mot%20theory%20an%20rev%2005.pdf [Accessed 10 April 2012]. Latham, G. (2011). Work Motivation: History, Theory, Research, and Practice. Lose Angeles: Sage Publications, Inc. Latumahina, D. (2010). Work Environment: Personal Growth and Effectiveness. Retrieved June, 27, 2012 from http://www.lifeoptimizer.org/2010/07/30/positive-work-environment/ Lindner, J. (1998). Understanding Employee Motivation. Retrieved June, 28, 2012 from http://www.joe.org/joe/1998june/rb3.php/ Maslow, A. (2011). Maslows Hierarchy of Needs. Retrieved from: http://www.abraham-maslow.com/m_motivation/Hierarchy_of_Needs.asp [Accessed 12 February 2012]. McClelland, D. (1988). Human Motivation. Cambridge: Cambridge University Press McGriff, M. (2011).The Role of a Receptionist in a Front Office Department. Retrieved June, 29, 2012 from http://www.ehow.com/about_6067838_role- receptionist-front-office-department.html Petri, H. & Govern, J. (2012). Motivation: Theory, Research, and Application. New York: Wadsworth Publishing. Pizam, D. &Tesone, A. (2010).Principles of Management for the Hospitality Industry. Oxford: Jodran House. Pride, M. et al (2010). Business. Mason: South-Western Cengage Learning. Robbins et al (2009). Organizational Behaviour: Global and Southern African Perspectives. Cape Town: Pearson Education South Africa Robbins, A.(1997). The New Science of Personal Achievement. New York: Free Press. Saari, L. & Judge, A. (2004). Employee Attitudes and Job Satisfaction. Retrieved June, 29, 2012 from http://www.valdosta.edu/~mschnake/SaariJudge2004 Shanks, N. (2012). Management and Motivation. Retrieved June, 28, 2012 from http://www.jblearning.com/samples/076373473x/3473x_ch02_4759.pdf Silva,Sh. (2009). Does Empowerment Motivate Employees in the Hospitality Industry to Increase Performance? Munich: GRIN Verlag. Strauch, A. (1993). The Hospitality Commands. Delaware: Lewis & Roth Publishers. Thompson, D. (2008). Motivating Others: Creating the Conditions. New Jersey: Eye on Education, Inc. Walker, J. & Miller, J. (2010). Supervision in the Hospitality Industry: Leading Human Resources. New Jersey: John Wiley & Sons, Inc. Read More