CHAPTER ONE

1.0 INTRODUCTION

1.1 Statement of the Problem In spite the fact that in both developed and developing countries People are the organizations most valuable resources. The recruitment process perplex lacks credibility as influenced by nepotism, bribery and corruption, specifically in the banking industry in Tanzania outsourcing of recruitment process perplex performance of organizations specifically in the Banking industry in Tanzania. In merica, !urope and frica the effectiveness of an organization depends on its staff, and their training, organization and discipline. The "ood #uality of $ork depends on good #uality of people available in the organisation. %onse#uently, an organization that has a poor recruitment policy process is unlikely to recruit the right people and this may lead to poor performance, lo$ profitability and eventual demise. &e %enzo et, al. '())*+ $rote, -.ecruitment is that set of activities an organization uses to attract /ob candidates $ho have the abilities and attitudes needed to help the organization achieve its ob/ectives0. The recruiting efforts thus consist of $here to search 'source+ and ho$ to notify applicants of positions 'methods+. It is an undeniable fact that most of organization including the Banking industry recruitments in Tanzania lacks credibility and often influenced by nepotism, bribery and corruption, as $ell as the much talk about $hom you kno$0 culture 'the practice $hereby people recommend their o$n relatives and friends to be employed by their organizations+. %onse#uently, s#uare

pegs are put in round holes, resulting in poor service delivery. The recruitment and selection procedure therefore becomes a formality as opposed to an ob/ective means to ensure the selection of the best candidates fit for the /ob. Bediako '1223+ asserts that 4.5 in Tanzanian organizations relies heavily on assertive norms, $ith decisions being influenced by personal relationships bet$een managers and employees and this intend affects the recruitment and selection procedure. 4o$ever, Bediako '1223+ is #uick to add this does not mean merit is out of the #uestion but rather it is in line $ith personal interest rather than organizational, this situation promotes the organization to undertake employee recruitment process through outsourcing so as to achieve its organization goals. Therefore this study is conducted to evaluate the effects of employees recruitment process outsourcing on the organization performance in the Banking industry in Tanzania.

1.2 Bac !ro"n# of the Problem "lobal $ise it is $idely accepted that the human resource management field is build upon four main pillars, $hich are staffing, training and development, motivation, and maintenance and retention respectively '&essler, 12(1+. The staffing pillar is mainly broken do$n into three main functions, namely human resource planning, also kno$n as $ork force planning, recruitment, and selection functions respectively '&e%enzo and .obbins, 12(1+.

The established firms, organizations and even Banking industry in the developed countries of !urope, sia, merica and even frican countries

have realized that human resource planning function is concerned $ith detailing out the plan of the number of employees that $ill be hired throughout the year, $here, $hen, and budget of each. The recruitment function is concerned $ith creating a large pool of #ualified candidates that are both $illing and capable to perform the re#uired /ob. The selection function is concerned $ith selecting the best out of the best previously mentioned candidates that most fit the organizational culture, possess the right attitude, mindset, and are more prone for future development.

6n average, all previously mentioned functions, under the staffing pillar, are performed inside the organization. This has proved to be both expensive and time7consuming processes for organizations to perform in house. Therefore, a need aroused to study the likelihood of outsourcing the staffing pillar to achieve higher efficiency and cost effectiveness levels.

There is little dispute recently that the success or failure of most Banking industry and other organizations lies in the competitiveness of their human resource. s such, 4uman .esource 5anagement '4.5+ has made a

transition from a state of insignificance to one of strategic importance academically and business $ise '8ago, ())9+.

The current disposition of 4.5 is largely associated $ith the drastic expansion of businesses globally, technological innovations and fierce competition that characterizes the environment in $hich businesses operate today and the Tanzanian business environment is no exception to this global

development. Tanzania, a country once characterized by political and economic instability has recently developed into one among of the fastest gro$ing economies on the !ast frican regional and is gradually developing

into the financial hub of :ub :aharan frica.

The liberalization of the banking sector in 12(2 $itnessed the proliferation and influx of many banks into the country. %onse#uently, the banking sector has significantly been transformed and continued to improve $ith ne$ regulations and guidelines seeking to maintain stability. ;ith almost t$enty banks in operation, the sector has become more efficient, innovative, competitive and profitable. It is therefore a step in the right direction to vie$ recruitment practices in some selected emerging and vibrant banks in the country. The <ational 5icrofinance Bank is the only selected bank.

The recruitment and selection process is one of the most important 4.5 function at <5B bank, though sometimes the recruitment processes involve outsourcing the point of entry into the bank and also $here the bank recruit talents is to drive their goals and interest. To this end, banks must be interested in attracting a larger pool of /ob candidates because it $ill provide them a higher chance in hiring #ualified employees ';ayne, 1221+.

1.$ A br%ef Re&%e' of the e(%)t%n! *%terat"re

6utsourcing is a $ay of contracting for the service or good or implementation of a task, previously carried out in7house, to a third party, in order to perform

on the organizations behalf0

'%ooke et al. 122=+. 6utsourcing is a

considerably ne$ understanding of the subcontracting term. Together $ith the expansion of this technical labour market sector, organizations faced an increasing need for #ualified employees $ho possess the re#uired expertise and kno$ledge. In such environment, the only solution to fulfil gro$ing recruitment needs $as to contract third7party recruitment service providers, resulting in extra high cost of recruitment. >ater on, management started to analyze ho$ and by $hat means they can reduce costs on recruitment, at the same time still ac#uire #ualified specialists from the market. It lead to the development of recruitment steps and procedures, in addition to building internal databases and IT infrastructure, therefore, adding a value to their businesses. 4o$ever, the .P6 service providers also started to develop added services, in order not to run out of business. s time passed, the

concept of .P6 gained popularity among 4. professionals, because not only it reduced costs on staffing, but also it helped to assure the excellence and completion of the labour market. :ince these days, .P6 services have been considered as an effective instrument to accomplish organizational re#uirement needs %ooke et al. '122=+.

6utsourcing is gradually becoming an essential element of the $orld economy due to globalization. The global economic instability has considerably accelerated and intensified the competition in many fields, forcing organizations to overlook their strategies and find ne$ $ays to deal $ith the challenging environment. side from cost cutting, BP6 allo$s

management to allocate more time and resources and concentrate on

developing core competencies 'Plunkett .esearch, 122?+.

5a/or reasons for outsourcing are to reduce operational costs and paying more attention to the core processes of variable the firm. dditionally, the

cost predictability, improved #uality, conserve capital and increase

speed, among the other key aspects that enable outsourcing in the global environment ':uyash, 122@+.

ccording to a study conducted in

ugust 1223 by the :ociety of 4uman

.esources 5anagement ':4.5+, some of the 4. related functions that are currently outsourced by Anited :tates of merica based organizations

include, but not limited to, conducting background checks, employee development programs, in addition to legal and administrative functions. Thus, it is becoming obvious that the previously mentioned reno$ned organizations are eager to compete in the global environment via minimizing their costs to sustain a competitive advantage on the global arena.

%ooke et al. '122=+ examined the impact of 4.6 on the 4. functions and groups of people affected by the decision. They found that 4.6 allo$s the full time on board 4. professionals to perform more strategic tasks. Burthermore, they argued that 4.6 are -both fragmented and inconclusive0 '%ooke et al., 122=, *(*+.

Their study highlights on the lack of academic researches and narro$ literature availability on the financial and strategic reasons for outsourcing.

.P6 is an activity carried out by organizations to attain talent by delegating to a third party, kno$n as recruitment service provider, $ho partly implements the organizations recruitment needs. In the recent years, '.P6+ became very popular, due to its efficiency in cutting costs of in7house recruitmentC ability to attain talents and facilitate the managerial efforts to achieve deadlines 'Delly, 122@+.

1.+ Def%n%t%on) of ,e- term) an# Conce.t) (.*.(.ecruitment &efined The $ord Erecruitment has many meaning and plays an important role. !mployees leave the organization in search of greener pastures7 some retire some die in saddle. The most important thing is that enterprise gro$s, diversifies, and takes over other units7all necessitating hiring of ne$ men and $omen. In fact recruitment functions stop only $hen the organization ceases to exist. (.*.1 6utsourcing 6utsourcing is used in business strategy, in public and private organizations 'Dremic et al., 122?+ and it is a po$erful tool $hen used appropriately. 6utsourcing can be described as $hen an organization delegates parts of its business to another company, and many companies outsource divisions the company used to handle itself 'Dremic et al., 122?C !lmuti F Datha$ala 1222C ubert et al., ())?+. ubrey et al., '())?+ $rite in their article that the

decision to outsource should be $hat is going to be outsourced and not $hether to outsource or not, this is something companies need to look at before the outsourcing decision is made.

1./ Re)earch Ob0ect%&e) 1./.1 1eneral Ob0ect%&e The general ob/ective of the study is to understand the effects of employees recruitment process, outsourcing on the organization performance.

1./.2 S.ec%f%c Ob0ect%&e) The specific ob/ectives of the study are as follo$s, (. 1. To identify recruitment activities of the banking industry. To examine the effectiveness of the recruitment methods in banking

industry. @. *. To identify the obstacles of recruitment in the banking industry. To measure the $ay recruitment process affect the organization

culture. =. banks To provide recommendations on recruitment practices in the selected

1.2 Re)earch 3"e)t%on) In vie$ of the problems associated $ith recruitments process outsourcing in the Banking industry, the research #uestions $hich this study hopes to find ans$ers include the follo$ing,7 (. ;hat are the recruitment methods adopted by the selected banking

industryG 1. @. 4o$ effective are these methodsG ;hat are the obstacles to recruitmentG

*. =.

4o$ recruitment affect the banking organization cultureG 4o$ can recruitment practices can be enhanced in the banking

industryG

1.4 S%!n%f%cance of the re)earch The study aims in building a$areness on the issues related to the impact of human resources outsourcing in the Banking institutions and other organizations in Tanzania. Burthermore the study $ill pave a $ay to theories to be developed based on the impacts of the findings in this study. The study also $ill be so significance in dra$ing strategies, policies and procedures that can assist in outsourcing recruitment processes in the banking industry $hich is among the financial market and are catalytic agents in the development process of the country. Therefore, the findings and recommendations of this study $ill provide a frame$ork for the adoption of sound recruitment practices in the banking sector in Tanzania. The study can also serve as the basis for further research for those $ho intend to research into related areas. Binally, the research can also serve as source of reference to other related studies.

CHAPTER T5O *ITERATURE RE6IE5 2.1 Theoret%cal Re&%e' In reality the study have revie$ed different theories $hich reveal the fact about the effects of employees recruitment process outsourcing on the organization performance as it is bello$ here,

2.1.1 A!enc- Theorgency theory is the theory based on the relationship bet$een an agent and a principal '&onaldson F 6HToole, 1229C !isenhardt, ()3)+. In the theory the principal party delegates $ork to the agent party, $ho accomplishes the principals orders. !xamples of agent7principal cases can be employer7employee, %!67o$ner or buyer7supplier '!isenhardt, ()3)+. The parties in this dissertation used as principal7agent are the recruitment agency 'agent+ and the company hiring the agency 'principal+, $here the agent needs to assure the principals re#uirements. !isenhardt '()3)+ $rites that the model of the principal7agent supposes t$o problems, the first one is a goal conflict bet$een the t$o parties, a simple outcome to measure, and the second is $here the agent has less risk capability than the principal.

These t$o problems can create dissatisfaction for the parties leading to a closure of the agreement. Theorists believe that there is a reason for this and it is because the agents are putting their o$n interests over the

10

principals, making it hard to perform as agreed ' brahamson F Park, ())*+.

:upposedly the company hiring the agency has been affected in any $ay, taking into mind if the recruitment agency is taking or not taking any risks in the evaluation process, can lead to bad influence on the employees already $orking there.

2.1.2 Re)o"rce #e.en#enc- Theor- 7RDT8 .esource dependency theory '.&T+ is a theory trying to explain the behaviour of the organization and inter7organization through analyzing the critical resources an organization is re#uired to have to be able to survive and function '8ohnson 8r., ())=+. Pfeiffer and :alanciks '()93C 122@+ vie$ on the theory described that the resources needed from the organization are dependent on the external sourcesC the resources needed are financial, physical, and information 'Pfeiffer F :alancik, 122@C Bink, !delman, 4atten F 8ames 122?+.

There are t$o different theoretical dimensions of resource dependency discovered by %asciaro and Piskorski '122=+, po$er imbalance and mutual dependence. These t$o dimensions are combined in the original theory, but %asciaro and Piskorski '122=+ do not believe in the combined dimension because they have opposite effects on the ability to reduce

dependencies of the external sources an organization has 'ibid.+.

11

The resources of a company are areas this dissertation $ill focus on as $ell as the human resources. :ince the .&T is used to explain the behaviour of the organization and inter7 organization, it is useful in this type of research $here resources are examined.

2.1.$ Soc%al9Relat%onal e(chan!e theor:ocialI.elational exchange theory is one of the most conceptual theories in order to understand the behaviour of an organization. The theory presumes that the mutual transactions have the ability to generate a relationship of high #uality, yet it only occurs in certain situations 'Barker F %amarata, ())3C %sopanzano F 5itchell, 122=+. It is a theory used as a social po$er in different areasC some of these areas have already been investigated by researchers, net$orks, board independence,

organizational, psychological contracts and leadership '%sopanzano F 5itchell, 122=+. .esearchers of this theory see the cooperating parts motivated by three issues, the first one is to exploit their costs, the second is valuation of re$ards and the last one is reduce the costs. 5ost see the valuation of costs and re$ards as a steady process '%asmir, ())*+.

%ook F !merson '()93+ $rite in their article about t$o different $ays to enlarge the exchange vie$C the first one is that organizations need more than one member in the management and the second one is to have three or more employees in a /oint net$ork. The .elations bet$een internal and external parties $ithin or outside an organization are defined by the behaviour of employees, disregarding position and external forces affecting

12

an organization. :imultaneously, the 4. departments role is based upon these relations making them ambassadors bet$een all the different parties involved $ith an organization.

The behaviour of a specific party can of course, naturally, affect the behaviour of another, $hich in definition means that there are no completely independent characters, person can affect person B and vice

versa. .egarding the previous statement, it is concluded that behaviour can increase or decrease the value of an assignment an employee has.

2.2 Recr"%tment .ecruitment is the prime issue for managers in companies according to 5Jnstermann et al., '12(2+. The recruitment process has become a significant process not /ust for researches but also in practice and it is also the process $hich takes most time and costs of all 4. processes. 4. assets are the key parts of organizations $hich make the recruitment process important '>ee, ())*+. Being effective and hiring the right people is significant for the organization to clearly identify their needs so that the hiring process is done in a proper and effective $ay '5Jnstermann et al., 12(2+.

The process model from 5Jnstermann, !ckhardt F ;eitzel '12(2+ is presented belo$ to understand ho$ companies recruit. The different steps in the process may not al$ays be easy to understand /ust by looking at them, so here is an explanation of each step,

13

Em.lo-er Bran#%n! %reating an attractive image of the employer to$ards potential candidates as $ell as customers $ho may also be potential candidates.

Can#%#ate Attract%on "aining potential candidates vie$s of the organization as a constructive $ork place '.ynes, ())(+, including creating a positive force to$ards the organization $here the $ill to improve and develop the organization is given ' iman7:mith, Bauer F %able, 122(+.

A..l%cant Trac %n! Deeping track of applicant information

Pre:)elect%on Birst round of candidates approved by the employer

Select%on Binal selection of approved candidates

H%re ;elcoming the applicant as a ne$ member of staff

%ompanies are struggling $ith #uestions regarding the 4. activities and their organisation '6rdanini F :ilvestri, 1223+. :ince recruitment takes

14

most time and costs, companies may choose to outsource this particular 4. process '&asborough F :ue7%han, 1221+. 5oving the recruitment process to a recruitment agency $ill save the managers time to focus on managing and less on the bureaucracy creating more efficient planning 'ibid.+.

The main #uestions are $hich activity they should outsource and $hich to keep internally. n ans$er from 6rdanini and :ilvestri '1223+ is found

logical and can be the easiest $ay for the companies to ans$er their #uestions,

;hen activities are considered more transactional or non7strategic, they should be outsourced. ;hen they represent core practices or are of a relational nature, they should be retained in7house '6rdanini F :ilvestri, 1223, p. @9@+.

>eading experts from Baker F 5cDenzie la$yers and the 5ac#uarie "raduate :chool of 5anagement '122)+ have identified some advantages and disadvantages $ith both internal and external recruiting 'table 1.(+ $hich sho$s ho$ managers also can see if they should outsource or not.

15

Internal Can#%#ate)

E(ternal Can#%#ate) dvantages >arger pool of candidates Increased kno$ledge of the <e$ skills and ideas brought into the organization %an be cheaper than

candidates abilities is available %andidate has kno$ledge of /ob re#uirements and the organisation "ood

for employee morale 6rganisation needs to training internal candidates hire only at base level %an lead to insularity &isadvantages Increased difficulty and risk associated $ith recruitment and selection process >onger training and

%an encourage infighting for promotions .e#uires effective training and appraisal systems

Ansuccessful candidates can become induction periods needed discontented

%onsidering the circumstance of the process, it is directly related to the coercive and environmental factors affecting the decision making. ;ith coercive the definition relates to government la$s, rules, and other legislations the organisation has to abide by for deciding $hether to outsource recruitment or not. '&asborough F :ue7%han, 1221C >ever, ())9+

5oving along to more internal than external factors for the decision making, managers must consider the recruiting agencies offering the service, $here trust is an important ad/ective for the relation bet$een them. >ack of trust $ill lead to no cooperation bet$een the client and the vendor, yet taking into
16

consideration that a long term relation $ill improve the trust $ithin the relationship '&asborough F :ue7%han, 1221C 6rdanini F :ilvestri, 1223+. n

agency in this situation may be opportunistic and cause its client setbacks, so it is a #uestion $hether the costs for maintaining the trust or breaching the trust is cheaper. 6f course the more trust there is the less monitoring costs $ill be dealt to the organization '&asborough F :ue7%han, 1221+.

2.$ O"t)o"rc%n! 6utsourcing is used in business strategy, in public and private organizations 'Dremic et al., 122?+ and it is a po$erful tool $hen used appropriately '"reaver, ()))+. 6utsourcing can be described as $hen an organization delegates parts of its business to another company, and many companies outsource divisions the company used to handle itself 'Dremic et al., 122?C !lmuti F Datha$ala 1222C ubert et al., ())?+. ubrey et al., '())?+ $rite in

their article that the decision to outsource should be $hat is going to be outsourced and not $hether to outsource or not, this is something companies need to look at before the outsourcing decision is made.

There are different divisions companies are able to outsource, and the prime reason to outsource is to reduce the costs 'Kuelin F &uhamel, 122@C <g$enyama F Bryson, ()))C "reaver, ()))C ubert et al., ())?C Bettis,

Bradley F 4amel, ())1+. The basic reason is as mentioned above, to reduce costs, but it is also to specialize the labour '<g$enyama F Bryson, ()))C Kuelin F &uhamel, 122@+. The labour reason is driven by different aspects, employee driven, $hich this dissertation $ill look more deeply into,

17

organizationally driven and improvement driven '"reaver, ()))+. The employee driven reason to outsource is to give the employees a stronger career path and. to increase the employees commitment. The

organizationally driven reasons to outsource are to enhance effectiveness by focusing on $hat each part do best, to transform the organization and, to increase product and service value 'ibid.+. Burthermore, the improvement driven reasons to outsource are to improve different operating performances such as higher #uality, increased productivity and shorter cycle times 'ibid.+.

;hile this stands, Kuelin and &uhamel '122@+ $rite the opposite, they mean that there is more to outsourcing than the effectiveness and the cost reduction, there is a gro$th of the company and its performance leading to a more long7term sustainability of the company. There are different kinds of outsourcingC companies can outsource a $hole business process 'Dim F Lon, 1229+, such as 4uman .esource 6utsourcing '&elmotte F :els, 1229+, or only outsource a part of a business process such as recruitment process as this dissertation $ill focus on.

2.$.1 B")%ne)) Proce)) O"t)o"rc%n! 7BPO8 In Business Process 6utsourcing 'BP6+ a company outsources a $hole business process, $hich another company $ill run and manage

'5ahmoodzadeh, 8alalinia F <ekui Mazdi, 122)C Dim F ;on, 1229C "refen, >ud$ug, &an F ngelov, 122?C Bernandes, 5ills F Bleury,

122=+. Business Process 6utsourcing has gro$n to become one of the biggest leading sub/ects of business and economics of our time '%lick F

18

&uening, 122=C Mang et. al, 122?+. It is an innovation considered to have most discipline, and re#uired to have different kinds of skills for it to run correctly and be successful, due to the fact that human factors need determined attention and to be managed in the right $ay in order to succeed '%lick F &uening, 122=+. The primary motivation for BP6 is globalization and competitive markets, mostly mergers and ac#uisitions in different methods of entering a ne$ market '"hodes$ar F Laidyanathan, 1223+.

>ooking at BP6 through the 4uman .esource perspective it is important to see if the board is $orking to$ards a significant and rapid change in the business process of the companies 4.. There is also a need of a constant innovation in the Business Process of the 4. in companies to be able to have all the specifics of the contract included in the $ork to reduce the risks and strengthen the trust bet$een the t$o parties '%onklin, 122=+. 5ore about the 4. outsourcing and 4. outsourcing as a $hole BP6 $ill be presented belo$.

2.$.2 H"man Re)o"rce O"t)o"rc%n! 7HRO8 4uman resource outsourcing is a specific segment of business process outsourcing. There are t$o different vie$s on 4uman .esource 6utsourcingC the first is an explanation of the opportunity organizations have to change their internal 4. division and the second is concerning the costs. The prime driver of outsourcing the 4. division is reducing the costs, $hich is $hat organisations strive for '&elmotte F :els, 1229C >ievens F &e %orte, 1223C

19

bdul74alim, %he74a F "eare, 122)+.

good definition of human resource

management can be described as all decisions and $ork the organization has in the connection $ith the employees and its relationship $ith them 'Beer, :pector, >a$rence, 5ills F ;alton, ()3*C Pro$se F Pro$se, 12(2+. 4uman resource activities have for years been the activities that organisations have controlled internally. <o$adays, many are outsourcing their 4. practices and it is increasing in a fast range '6rdanini F :ilvestri, 1223+. .ecruitment is a part of 4. 'Beer et al., ()3*+ and the next topic $ill introduce the .ecruitment Process 6utsourcing '.P6+, $here companies only outsource the recruitment part of their 4..

2.$.$ Recr"%tment Proce)) O"t)o"rc%n! 7RPO8 Binding a definition for .P6 $as harder than expected since .P6 is still relatively ne$, therefore from the data collected a definition of .P6 $as able to be created for this paperC .P6 is a process used to increase an organizations efficiency through managerial time saving, moving the recruitment process to external recruiting agencies providing trust and the proper competitive expertise needed.

To have a proper understanding of .P6, a proper explanation of recruitment is re#uired. %ompanies F organizations can, in order to increase their force, use different methods to reach a positive result, they first need to form the organization and then re7form it '>ee, ())*+. !xcept for investing in hard$are resources and technology for example, human assets are re#uired to increase effectiveness and $orkforce.

20

.eorganization or moving to another city may re#uire ne$ faces $ithin the organization forcing them to start a recruitment process '5azur F Dleiner, 1221+.

Bollo$ing simple logic and common sense, it is understood that the managers and higher positioned employees face the task of recruiting. ccording to >ee '())*+ organisations have changed their $ay of thinking and are no$ more focused on the 4. $ithin the organisation. :ince recruitment is a process re#uiring /ob ads, marketing, reading, separating /ob applications, telephone calls, meetings, and intervie$s, the recruiters $ithin the company $ill fall back on their more daily operations at $ork, leading to decreasing effectiveness, less control and monitoring of the employees, basically causing a destructive domino effect. <ext theories that $ill be presented are the organisational culture theories $hich $ill be put against .P6 in this study.

2.+ Em.%r%cal *%terat"re Re&%e' 2.+.1 DE6E*OP;ENT O< HU;AN RESOURCE ;ANA1E;ENT The study of people management has gone through different phases dating as far back as Bredrick Taylors '()2)+ :cientific 5anagement to !lton 5ayos'()1*7()@1+ 4a$thorne experiment giving rise to 4uman .elations movement through the era of Personnel management until the present day concept of 4uman .esource 5anagement. This development has been of interest in many studies 'see for example Blood et,al 1221C :chuler and .andall, ())3C 8ain and :aakshi, 122=+.
21

It is ho$ever refreshing to note that each concept reflected the era and times in $hich it $as developed, and address to a large extent, pressing issues that confront the management of people at the said time $hiles utilizing previous concepts as building blocks for ne$ ones. 4o$ever, the progression from personnel management to 4.5 has not been a smooth one in comparison to previous ones. &ifferences of the t$o phases have attracted several debates and still cause disagreement in management literature 'Terpstra, ())?C :andra 122)+.

Initially, 4uman .esource 5anagement developed as a A: management concept $hich lays emphasis on the individual $orker and the need to treat people as assets rather than cost 'Prasad, ()9) and 4alcro$, ())3+. Though $idely accepted as the ne$ management practice, the concept remains undefined as it is applied in different $ays.

4ammersak '1221+ identifies three main approaches to 4.5, Birstly, 4.5 as a ne$ title for personnel management, pointing that organizations rename their personnel department $ithout necessarily changing practices, secondly, 4.5 as a $ay of re conceptualizing and re organizing personnel roles and describing the $ork of personnel department, and thirdly 4.5 as a totally ne$ approach for management $ith a distinctiveness $hich lies in the integration of human resource into strategic management and the emphasis on full and positive utilization of these resources. 4.5 is therefore defined as,

22

set of policies designed to maximize organizational integration, employee

commitment, flexibility and #uality of $ork. ;ithin this model, collective industrial relations have at best only a minor role0 '4ammersak 1221+. 4ammersak '1221+ definition brings out the individualistic and unitarist nature of 4.5. 4illtrop at, el '())*+ seminal $ork further highlights the unitary aspect of 4.5 as effective management that reaffirm employees commitment to the realization of company goals.

4illtrop at,el '())*+ therefore defines 4.5 as, -

distinctive approach to

employment management $hich seeks to achieve competitive advantage through the strategic deployment of highly committed and capable

$orkforce, using an integrated array of cultural, structural and personnel techni#ue0 '4ammersak '1221+ 4illtrop at.el '())*+ ho$ever, divert from the optimistic vie$ formerly stated by 4ammersak '1221+ arguing that 4.5 policies are adapted mainly to drive managements interest, the $ell being of employees is only factored in, as a means to an end 'achieving organizational goals and targets+. The above statements also reflect both hard and soft aspects of 4.5 as prescribed in the 5ichigan and 4arvard models respectively.

Dhatri '1222+, ho$ever take a different stance a$ay from the hard verses soft debate arguing that there is need to shift from prescriptivism to descriptive analysis of structures and strategy making processes of organization. They point out that, developing the necessary frame$ork for

23

understanding these structures and strategies are essential underpinnings of 4.5. :$anepoel et al. '1222+ in their hologram discourse dissolves the various conflicting vie$s of 4.5 by presenting the concept as a -complex holistic process0 and to gain deeper understanding one has to factor in the different forms it takes /ust like a hologram.

Terpstra '())?+ gives an all inclusive sum up of the various vie$s of 4.5 as, strategic and coherent approach to the management of an organizations

most valued assets, the people $orking there $ho individually and collectively contribute to the achievement of its ob/ective.0 part from the unitarist vie$ of 4.5 expressed in the previous paragraph, another central feature of 4.5 is the decentralization of responsibility to line managers. The general vie$ is that line managers are essential for the effectiveness of 4.5 practices regardless of the type of or version of the concept in #uestion. 4uang '()))+ reaffirms this point adding that line management play a more significant function in the implementation and drive of 4.5. Thus, the function of line managers does not only focus on purely technical responsibilities but also play a role in enhancing the human aspect of 4.5.

Brom the various vie$s presented, 4.5 can then be labelled as a strategic approach $hich is comprehensive and coherent, stresses on commitment, the need to treat human resource as assets, a unitarist approach and finally one $hich factors in line management responsibility in the performance and delivery of 4.5. Based on the different interpretations given to 4.5, the

24

study seeks not to add to the debate but rather present an empirical evidence of ho$ the concept is perceived and practiced in the "hanaian banking sector.

2.+.2 THE HR; PRACTICE There is no agreement on $hat constitutes 4.5 practices let alone a prescribed set of them '&elany, 122@+. .esearchers have over the years proposed countless varied lists of practices ho$everC there is no agreement on $hat or $hich practice #ualifies as an aspect of 4.5 ':$anepoel at el.1222+. It is interesting to note that there are still some practices that form the core of the various practices proposed. These include recruitment and selection, training and development, performance management and re$ard scheme, ho$ever, others such as /ob design and employee involvement are more sporadic and are yet to gain grounds in the 4.5 literature. 4uang '())2+ ho$ever puts for$ard seven practices namely, selection, training, appraisal, re$ards, /ob design, involvement and status and security. 4o$ever, the study focuses on six out of the seven practices in its analysis. :election of the practices for study is based on its recurrence in the literature revie$ed, its significance and measurability. The follo$ing is a list of the practices and definitions in relation to this study.

ccording to !d$in '()3*+, recruitment is the process of searching the candidates for employment and stimulating them to apply for /obs in the organization. .ecruitment is the activity that links the employers and the /ob seekers. Based on the definition provided by !d$in B. Blippo, recruitment

25

can be seen as the process of finding and attracting capable applicants for employment. The process begins $hen ne$ recruits are sought and ends $hen their application are submitted. The result is a pool of applicants from $hich ne$ employees are selected.

There are a number of resources that contribute to$ards the success of any organization, such as manpo$er, money, machine, material, information, idea, and other inputs. ;hile these resources are important, the human factor is the most significant one because it is the people $ho have to coordinate and use all other resources '%handan, ()39+. .ecruitment is an integral part of human resource, and involves the process of identifying and attracting or encouraging potential applicants $ith needed skills to fill vacant positions in an organization 'Peretomode and Peretomode 122(+, matching them $ith specific and suitable /obs, and assigning them to these /obs '%handan, ()39+.

8ob analysis, $hich is the study of $hat is to be done, $here, ho$, $hy, and by $hom in current and predicted /ob, begins the recruitment process '5c7 %ormick, ()9?+. This analysis involves compiling a detailed description of tasks, determining the relationship of the /ob to technology and to other /obs and examining the kno$ledge, #ualifications or employment standards and re#uirements '8ain and :aakshi, 122=+. 8ob analysis does t$o things

'8ones at el, 1222+. Birst, it tells the recruiter about the /ob itself by specifying the essential tasks, duties, and responsibilities involved in performing the /ob. This is called /ob description 'Brannick at el, ())1+. :econd, it describes the

26

skills, kno$ledge, abilities and other personal characteristics needed to perform the /ob. This is called /ob specification 'Blood at el 1221+. 8ob analysis provides essential information for recruitment 'Brannick et al., ())1+, and a thorough /ob analysis helps in the placement decision of an organization by specifying the re#uirements of a /ob and the abilities of the person to meet these re#uirements so that specific /obs are assigned to those people $ho $ill be most productive.

fter the /ob analysis process, the recruiter sources potential applicants by creating a$areness for the existence of vacancies in order to attract the right kind of people to be recruited from the right places and time.

2.+.$ INTERNA* AND E=TERNA* SOURCES O< RECRUIT;ENTS There are basically t$o sources of recruitment $here applicants can be dra$n into any organization. These sources are classified as either internal or external. To $hat extent these sources $ill be used depends upon the specific environment of organization as $ell as its philosophy of operations. ;hen using internal sources of recruitment, the organization turns to existing employees to fill open positions. The employees recruited internally are either seeking lateral moves '/ob changes that entail no ma/or changes in responsibility or authority levels like transfers+, or promotions '8ones et al., 1222+. Internal sources of recruitment are not expensive and are less time consuming, compared to external sources. nother merit of internal sourcing is that the employees are already familiar $ith the system, and the organization also has information about their skills, abilities and actual

27

behavior on the /ob. Internal sourcing boosts morale and motivation of employees.

&espite the internal sources of recruitment, many organizations still rely on external sources. .easons may be that there is limited pool of candidates internally and the system may not have suitable internal candidates. ;hen recruitment is conducted externally, the organization looks outside for potential applicants. !xternal recruitment is likely to be used especially for lo$er entry /obs in periods of expansion, and for positions $hose specific re#uirements cannot be met by present employees $ithin the organization. There are multiple means through $hich an organization can recruit externally, such as advertisements in electronic 'including internet+ and print media, private and public employment agencies 'Prasad, ()9)+, $alk7ins by /ob hunters '8ones et al., 1222+, employee referrals '4alcro$, ()33+, academic institutions '>indguist and !ndicott, ()3?+, professional

associations, unions 'Terpstra, ())?+ and informal net$orks '8ones et al 1222+.

!xternal sourcing has both advantages and disadvantages.

dvantages

include having access to a potentially large applicant pool, being able to attract people to an organization $ho have the skills, kno$ledge, and abilities the organization needs to achieve its goals, and, being able to bring in ne$comers $ho may contribute fresh ideas to solving problems and $ho may be up7to7date on the latest technology. The disadvantages include high costs of recruitment and training, lack of kno$ledge about the inner $orkings

28

of the organization, and uncertainty about the performance of the potential employees. .ecruiting #ualified and competent $orkers may be very difficult for some organizations because of some environmental constraints. :ome organizations have unattractive $orkplaces, have policies that demand promotions from $ithin, operate under union regulations, or offer lo$ $ages, $hich makes recruitment exercise and keeping employees difficult '<ickels et al., ()))+. 4o$ever, the degree of complexity of recruitment is minimized by formulation of sound human resource policies after careful analysis of the strengths and $eaknesses of the environment.

2.+.+ RECRUIT;ENT ;ETHODS 4alcro$ '()33+ compiled the most popular recruitments methods $hich

organizations use to attract potential /ob seekers for employment as follo$s,

8ob

dvertisementC

$ay of communicating the employment needs $ithin

the firm to the public through media such as radio, ne$spaper, television, industry publications, and the Internet. :ometimes, organizations can perform the recruitment function through blind advertisements. In blind advertisements no identification about the company is provided to applicants. %ompanies can use blind advertisements for many reasons e.g. %ompany $ants to keep the recruitment in lo$ profile so that lesser number of applicants should apply in order to discourage the irrelevant people. It can also be due to bad reputation or image of the organization

!mployment

gencies,

n organization that helps firms recruits employees

29

and, at the same time, aids individuals in their attempt to locate /obs. There are t$o types of the employment agencies i.e. Public !mployment and Private !mployment gencies

gencies. Both of these sources provide

coordination bet$een the organizations and applicants $ho are searching for /obs, they charge fees for their services. !mployment agencies are able to tailor their services to the specific needs of the clients Bor example some agencies specialize in a particular employment areas, such as engineering, human resource or %omputer programming

Internship,

special form of recruiting that involves placing a student in a

temporary /ob. There is no obligation on the part of the company to permanently hire the student and no obligation on the part of the student to accept a permanent position $ith the firm. 4iring college students to $ork as student interns is typically vie$ed as training activity rather than as a recruiting activity. 4o$ever, organizations that sponsor internship programs have found that such programs represent an excellent means of recruiting outstanding employees.

6nline .ecruitment, 6rganizations can also use $eb sites and internet sources to recruit people, conduct application submission test and intervie$s and other recruitment activities.

Ansolicited

pplicants, 5any /ob seekers visit the offices of $ell7kno$n

companies on their o$n to look for /ob. :uch callers can help in creating the

30

talent pool or the database of the probable candidates for the organization.

!mployee .eferral, 5any organizations have structured system $here the current employees of the organization can refer their friends and relatives for some position in their organization. lso, the office bearers of trade unions

are often a$are of the suitability of candidates. 5anagement can in#uire these leaders for suitable /obs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

!ducational Institutes, Larious management institutes, engineering colleges, medical %olleges etc. are a good source of recruiting $ell #ualified executives, engineers, medical staff etc. They provide facilities for campus intervie$s and placements. This source is also called campus recruitment.

2.+./ CHA**EN1ES O< RECRUIT;ENT 6rganizational recruitments are not $ithout problems. "roblet et al '122=+ identified time and resources constraints as the ma/or setbacks to effective recruitment. They contend that recruitment is becoming expensive and time consuming these days and advises organizations to put in place mechanisms to monitor and control cost.

;riting on a similar topic, "berevbie '1223+, argues that the greatest challenges organizations face during recruitment relates to ho$ to find and recruit the best candidates. Binding the best possible candidates is becoming

31

elusive for many organizations because of skills shortage in the labour market. Besides the difficulties in getting good candidates, organizations are also faced $ith the problem of retention. nother problem relates to the

challenges posed by globalization and the gro$ing sophistication of recruitment '8ike, 122@+. The traditional recruitment methods are proving to be less ade#uateC organizations are being pushed to explore for ne$ $ays of attracting competent people.

Binally, external interference ':andra, 122)+, poor planning ' ya/i, 122(+ and bad recruiter attitude ' madasu, 122@+ are other challenges that

organizations need to overcome in order to achieve recruitment targets.

2.+.2 A*TERNATI6ES TO RECRUIT;ENT The myriad of problems associated $ith recruitment has led some critics to proposed alternative $ays of meeting the staffing needs of organizations. :ome of the options in this regard may be listed thus,

6vertime, :hort term fluctuations in $ork volume could best be solved through overtime. The employer benefits because the costs of recruitment, selection and training could be avoided and the employee in the form of higher pay.

:ubcontracting, To meet a sudden increase in demand for its products and services, the company may sometimes go for subcontracting N instead of expanding capacities immediately. !xpansion becomes a reality only $hen

32

the firm experiences increased demand for its product for a specified period of time. 5ean$hile the firm can meet increased demand by allo$ing an outside specialists agency to undertaken part of the $ork, to mutual advantage

6utsourcing,

ny activity in $hich a firm lacks expertise and re#uires on

unbiased opinion can be outsourced. 5any businesses have started looking at outsourcing activities relating to recruitment training, payroll, processing, surveys, benchmark studies, statutory compliance etc more closely because they do not have the time or expertise to deal $ith the situation. 4. heads are no longer keeping activities like resume management and candidates sourcing their daily scrutiny. This function is more commonly outsourced $hen firms are in seasonal business and have cyclical stuffing needs.

2.+.4 RECRUIT;ENT IN TAN>ANIA This is largely influenced by the Tanzanian -$hom you kno$0 culture 'the practice $hereby people recommend their o$n relatives and friends to be employed by their organizations+. The recruitment and selection procedure therefore becomes a formality as opposed to an ob/ective means to ensure the selection of the best candidates fit for the /ob. Bediako '1223+ asserts that 4.5 in "hana relies heavily on assertive norms, $ith decisions being influenced by personal relationships bet$een managers and employees and this intend affects the recruitment and selection procedure. 4o$ever he is #uick to add this does not mean merit is out of the #uestion but rather it is in line $ith personal interest rather than organizational. The criteria normally

33

used in recruitment and selection includeC intervie$s, use of curriculum vitae, and recently $ritten and oral examinations set by the company, $hich is more academic in nature than the general assessment offered in psychometric testing.

Dhatri '1222+ reported that the choked /ob market in Tanzania favours the employer rather than the employee, $ith most applicants forced to take desperate measures to secure /obs, the employer has a large pool of applicants to select from on their terms of condition.

2.+.? STRATE1IES <OR SUCCESS<U* RECRUIT;ENT .ecruitment and selection is not only about choosing the most suitable candidate. The recruitment and selection experience can also impact on the likelihood that a candidate $ill accept a /ob offer and on their commitment to remaining $ith the organization. :andra, '1223+ %ommitting time and resources to develop a comprehensive recruitment strategy is a $orth$hile investment. Poor recruitment choices 'i.e., poor person7/ob fit+ can have a range of undesirable conse#uences for the organization and the $orker including, 4igher rates of turnover, reduced performance effectiveness, lo$ered /ob satisfaction and reduced $ork motivation.

2.+.@ AOB DESCRIPTION clear, accurate and up7to7date /ob description is crucial to ensuring a good person7/ob fit. ccording to <ickels at el '()))+ it is $orth$hile spending

34

some time making sure that the /ob description matches the everyday reality of the /ob. /ob description contains t$o types of information, :pecific tasks

and activities re#uired for a particular /ob e.g., conduct counseling sessions, $rite client reports and the kno$ledge, skills and abilities re#uired for effective performance by the /ob incumbent 'e.g., good communication skills, capacity to establish good client rapport+. The accuracy of a /ob description is likely to be improved by gathering information from different sources. &ifferent perspectives on the kno$ledge, skills, responsibilities, challenges and demands of a position are likely to be provided by supervisors and $orkers in the same or similar roles. It may also be useful to consider $hether the organization is $illing to take on less experienced $orkers and provide professional development activities 'in7house or external+ to build up their kno$ledge and skills.

2.+.10 DE6E*OP;ENT O< E<<ECTI6E RECRUIT;ENT STRATE1B T$o important issues to consider $hen developing a recruitment strategy are '(+ The source of recruitment 'i.e., advertisements, personal referrals, employment agencies, direct applications '1+ The recruiter 'i.e., the -personal face0 of the organization+. range of strategies 'e.g., ne$spaper advertisements, personal net$orks+ can be used to recruit ne$ $orkers. There is evidence that hiring ne$ staff through referrals from existing staff or direct 'unsolicited+ applications is likely to result in lo$er turnover rates and higher /ob satisfaction compared to more traditional avenues of recruiting 'e.g., ne$spaper advertisements+.

35

range of people $ithin an organization may be called upon to act as recruiters 'i.e., to ans$er telephone en#uiries, conduct intervie$s, etc.+. recruiter can have a significant impact on /ob applicants, particularly their interest in a position and their intention to accept a /ob offer. ';ayne, 1221+. The supervisor for the position and co$orkers are likely to be the most effective recruiters as they $ill be vie$ed as trust$orthy and credible sources of information about a position and the organization. There is also evidence to indicate that friendly and informative recruiters are associated $ith firmer intentions to accept /ob offers. n experienced recruiter $ho is familiar $ith

the organization can also be an important source of realistic and accurate information for candidates 'i.e., providing a realistic /ob previe$+.

!mphasizing the positive aspects of a position is important in order to attract desired candidates. 4o$ever, an unrealistically optimistic /ob description may create problems in the longer term if a ne$ employees expectations are not met ':andra, 122)+.

2.+.11 AOB INTER6IE5 In order to obtain the best person7/ob fit 'i.e., matching the right person for the right /ob+, a structured intervie$ format is recommended ';ayne, 1221+. structured intervie$ involves asking each candidate the same set of #uestions and assessing their responses on the basis of pre7determined criteria. The #uestions and assessment criteria are based on an accurate, updated /ob description.

The most common types of structured intervie$ #uestions are situational and

36

experience7 based.

realistic /ob previe$ involves providing candidates $ith

an accurate and complete representation of the tasks and responsibilities of the /ob. It presents the pros and cons of the /ob to potential candidates.

2.+.12 E6A*UATION O< RECRUIT;ENT ;ETHODS Periodically evaluating the effectiveness of your recruitment strategy, such as the type of sources used for recruiting, can be a useful activity ':$anepoel at el, 1222+. Bor instance, a cost7benefit analysis can be done in terms of the number of applicants referred, intervie$ed, selected, and hired. %omparing the effectiveness of applicants hired from various sources in terms of /ob performance and absenteeism is also helpful. 6ne could also examine the retention rates of $orkers $ho $ere hired from different sources.

2.+.1$ ORIENTATION O< NE5 STA<< n effective induction helps ne$ $orkers understand their role and $here they -fit0 $ithin the organization. It also e#uips them $ith the tools they need to perform their $ork role. comprehensive induction process can benefit ccording to Peretomade at el, '122(+

$orkers performance and retention.

induction should be treated as an ongoing process to support ne$ $orkers over the first fe$ months of their position. 6rganizing a mentoring or -buddy0 system is a good strategy to ensure a comprehensive induction. T$o useful induction tools are, Induction manual I kit and 5entoring program or -buddy0 system.

37

2./ Re)earch !a. The reality proves that most of the research studies conducted $ere based on the retention and motivations, recruitment processes and the outsourcing processes. Therefore this study has to be conducted on the effects of employees performance. recruitment process outsourcing on the organization

2.2 Conce.t"al <rame'or

INDEPENDENT VARIABLE Recruitment Process Internal Process External Process DEPENDENT VARIABLE Organization Performance

So"rceC Re)earcherD) I#ea

38

CHAPTER THREE

RESEARCH ;ETHODO*O1B $.1 Intro#"ct%on This chapter provides methods, techni#ues and procedures that $ill be used in conducting the study particularly in gathering data. The chapter covers mainly research design, the area of the study, study population, sampling techni#ues, data collection methods, data analysis techni#ues and validity and reliability.

@.1 reas of :tudy This study $ill be conducted at <B%, B .%>!M: and %B Bank Branches

in &odoma 5unicipalityl. The choice of the study area or organization is based on the reason that <B%, B .%>!M: and %B Bank Branches in

&odoma 5unicipality represents other Banking industry in Tanzania. dditionally, the &odoma municipality has been chosen due to convenience in terms of accessibility and affordability follo$ing the limitation of financial resources and time.

$.2.1 *ocat%on &odoma the capital of Tanzania is located in the centre of the country. &odoma 5unicipality is boarded by %ham$ino district in the !ast and Bahi district in the ;est. It lies bet$een >atitudes ? 2< and ?.@2:, and >ongitude @=.@2 and @?.212 !ast. It is *=? km to &ar es :alaam and *1? km to rusha 'A.T, 122=+.
39

$.2.2 Ph-)%cal character%)t%c) The 5unicipality covers an area of 1 9?) s#uare Dm. It is characterized $ith both Arban and rural #ualities. It stands on broad up land plateau $ith an altitude ranging bet$een )227( 222 meters above sea level, $ith beautiful stony hills. The most prominent include Image, Isanga and 5lim$a. 4o$ever, the 5unicipality experiences a long draught season because of scanty rainfall. s such, the area has scanty vegetation such as herbs,

grasses as $ell as conspicuous Baobab and cacia trees 'A.T, 122=+. $.2.$ Cl%mate an# ra%nfall The climate of &odoma is semi7arid, marked seasonal rainfall distribution $ith a long dry season starting from late pril to late <ovember and a short pril. verage rainfall

$et season starting late <ovember to the end of

ranges from ==2 to ?22mm per annum. The minimum average temperatures vary from (2O% in 8uly to 12O% in <ovember. 8uly is the coldest month

$hereas <ovember is the hottest month, $ith mid7day temperatures exceeding @2O% 'A.T, 122=+. $.2.+ A#m%n%)trat%on &odoma 5unicipality is administratively divided into * divisionsE *2 villages and 92 5itaa 'hamlets+. @2 $ards,

t the 4ead#uarters there are (@

departments and ? units $ith a total of @ *22 employees 'A.T, 12((+. $.2./ Po."lat%on The municipality of &odoma has a total population of @11 3(( comprising (=? *3? males and (?? @1= females. The total number of 4ouse hold is 9? ((1

40

$ith an average population gro$th rate of @.@P. The dominant religion found in the city is %hristianity and is follo$ed by 5uslims as $ell as indigenous religion people 'A.T, 122=+. @.@ .esearch &esign .esearch design explains all practical details $hich $ere follo$ed for research including methods to be used for data collection, ho$ many people took part, ho$ they $ere chosen, $hat tools $ere used for data collection, ho$ the data $as analyzed 'Dumar, 122=+. This study used cross sectional study so as to make a full examination of outsourcing recruitment process in the banking industry in Tanzania. %ross sectional research design $as used in analyzing the problem in regard to research ob/ectives. This method allo$ed the researcher to study different groups of respondents at one point at a time 'Bailey, ())*+. 4o$ever, it $as used to enable to use of Qdifferent techni#ues of data collection based on research ob/ectives.

@.* Target Population The target population studied $ill include employees available from various departments in the organization and its coverage involve officers $ho assume line responsibilities and their subordinates. This $ill involve ?22 employees from <B%, B .%>!M: and %B Bank Branches in &odoma

5unicipality from $hich a sample $ill be dra$n.

@.= :ampling Techni#ues Both the probability and non7probability sampling techni#ues $ill be used to select the appropriate respondents from the selected organization to be
41

studied.

ccording to Dothari '122@+ probability samples $ith the use of

simple random sampling assumes that every member of the population has a kno$n and e#ual chance of being selected. ;hile for non7probability sampling is said as convenience sample $here by the researcher selects the easiest population members by picking from $hich to obtain information. Therefore, $ith probability sampling, this study $ill use simple random sampling to pick respondents for intervie$ from different departments of <B%, B .%>!M: and %B Bank Branches in &odoma 5unicipality. But $ith non probability sampling, purposive sampling $ill be used to get response from key informants such as heads of 4.5 departments. @.=.( :ample :ize Asing total employees of ?22 from ll the three Branches of <5B Bank in

&odoma 5unicipality the formula belo$ as described by .$egoshora, '122?+ $ill be used to estimate the sample size. Precision level $ill base on (7(2P. RRRRRRRRRRRRRRRRR.'(+ ;here by n S :ample size, <S Total population @*22 x S Precision '(2P+ (S constant

200 nF ::::::::::::::::::::::::::::::: 1 G 200 710H82

42

200 :::::::::::::::::::::::::::::::::::::::: 1 G 200 70.182 n F @4

Brom the calculation the study $ill use the sample size of )9 respondents $ho are <B%, B .%>!M: and %B Bank Branches employees. This have

ade#uate number of representatives that posses all characteristics of the target population.

@.? &ata types and :ources The researcher collected mainly primary data from the employees $ho $ill be selected using simple random sampling and for key informants such as heads of 4.5 departments from the organization $ill be picked purposively for intervie$. :econdary data also $ill be collected that are relevant to the ob/ectives of the study. :econdary data $ill be obtained by revie$ing relevant reports and various publications such as books, /ournals from libraries and internet surfing.

@.9 5ethods of &ata %ollection and Tools

@.9.( Kuestionnaire :urvey This method involves the use of $ritten #uestions to $hich the respondents individually responded in $riting. %losed ended #uestions include all possible ans$ersIpre$ritten response categories, and respondents are asked to

43

choose among them. 6pen7ended #uestions allo$ed respondents to ans$er in their o$n $ords. The ma/or advantage of #uestionnaire that it is stable and can be revie$ed repeatedly. The #uestionnaires survey $ill be administered to all selected respondents. The #uestionnaire $as administered by the researcher to respondents.

@.9.1 Intervie$ The intervie$ can be guided by structured and semi structured #uestions $hich are used to obtain information from respondents about particular situation, problem or topic. ccording to Dothari '122@+ the techni#ues are

very flexible and can be used to collect large amounts of information. 4o$ever, this method gives a chance to intervie$ers to hold the respondents attention and are available to clarify difficult #uestions. They can guide intervie$s, explore issues, and probe as the situation re#uires. Therefore, this study $ill use semi7structured intervie$ using a checklist to conduct intervie$ to some of respondents to get in7depth vie$ especially to key informants.

@.9.@ &ocumentary .evie$ &ocuments are any $ritten or recorded materials $hich are not prepared at the re#uest of the in#uirer or for the purpose of evaluation. This study $ill use sources of information from reports, professional /ournals and books. These $ill be obtained from higher learning institutions including universities available in &odoma and surfing the internet.

44

@.9.* Pre7testing of research tools In addition, pre7testing of data collection tools $ill be done to fe$ respondents before the actual data collection. This $ill be done by asking people to respond to the sample #uestions of the study. They $ill be measured in terms of length, structure and $ording of the #uestions and ad/ust them conse#uently.

@.3 &ata Processing and nalysis Processing and analysing of data involves a number of closely related operations $hich are performed $ith the purpose of summarizing the collected data and organizing these in a manner that they ans$er the research #uestions 'ob/ectives+ '&a$son, 1221+.

@.3.( &ata Processing The :tatistical Package for :ocial :ciences ':P::+ %omputer program $ill be used in data processing. The collected data $ill be processed and verified prior to analysis. &ata processing $ill begin $ith editing to detect errors and omit them. &ata classifyication also $ill be done and $ill be coded into numerals to make them ready for analysis.

@.3.1 &ata nalysis &ata collected $ill be analyzed by establishing fre#uencies and percentages to get the proportions of respondents in the main issues regarding to each research ob/ectives. This means both ob/ectives $ill be analyzed by

45

commanding an analysis, descriptive statistic for fre#uency and percentage computation. This $ill be done to closed ended nature of #uestions. 6n the open ended nature of #uestions commanded on multiple responses, define variable sets for fre#uency and percentage computation.

@.) Lalidity and .eliability of the tools

@.).( Lalidity Lalidity means that correct procedures have been applied to find ans$ers to a #uestion '&a$son, 1221+. The validity of data collection tools $ill be assured by accommodating comments from the research supervisor, administration of tools by the researcher and conducting pilot study to test data collection tools before the actual data collection.

@.).1 .eliability .eliability refers to the #uality of a measurement procedure that provides repeatability and accuracy '&a$son, 1221+. ll respondents $ill be

influenced by the researcher to make the study reliable for its findings to be obtained. &ifferent #uestions $ill be constructed cutting across the designed ob/ectives, hence the reliability of collected data. 4o$ever, respondents $ill be assured of the confidentiality of the information that $ill be provided to the researcher.

@.(2 .esearch !thics ccording to &a$son '1221+ collecting data through any of the methods may

46

involve some ethical issues in relation to the participants and the researcher, Those from $hom information is collected or those $ho are studied by a researcher become participants of the study. 6r can involve to anyone $ho collects information for a specific purpose, adhering to the accepted code of conduct, is a researcher. The permission to conduct this study came from relevant authorities including from the selected Bank $ith its branches and :t.8ohns Aniversity of Tanzania. These include $ritten permission from both authorities. The collected data $ill be used for the purpose of this research only. In addition, the researcher $ill make sure that all the collected information from respondents are kept anonymous. The study $ill ensure also that after the information has been collected, the source cannot be kno$n especially from an individual.

47

Reference) madasu, &. '122@+. Personnel and the <igerian 5anagement %risis, /eokuta Iron and :teel 5ill !xamined. The '*+ p. (7(2 Bediako, D. '1223+. Professional skills in 4uman .esource 5anagement. Dasoa, sare7Bediako and ssociates yagi, . '122(+. "lobalization and the <igerian !nvironment, ;akeup bu/a 5anagement .evie$. 3

%all for the 4uman .esource Practitioners. 4uman .esource 5anagement .evie$. *= '@+ p. (*7(= Brannick, 5., Brannick 8. F >evine !. '())1+. 8ob :election, and the (9(7 (3@. %handan, 8. '()39+. 5anagement Theory and Practice. <e$ &elhi, Likas Publishing 4ouse &e %enzo, &. F .obbins, :. '())*+. 4uman .esource 5anagement, %oncepts and Practices. <e$ Mork, 8ohn ;iley Press. &elany, D. '122@+. :urvey links, 4. strategies and profits. Independent 4uman .esource .evie$. @9 '1+ p.1(71* !d$in, B. '()3*+. Personnel 5anagement. <e$ Mork, 5c"ra$ N 4ill. Blood, P. F "ibson, %. '1221+. 5anagement and !mployment, The recruitment, development and motivation of people. %ape To$n, mpersand Press. "berevbie, &. !. '1223+. :taff .ecruitment, .etention :trategies and Performance of :elected Public and Private 6rganizations in <igeria. Thesis :ubmitted in partial fulfillment of the .e#uirement of %ovenant nalysis, Personnel

& . 4uman .esource 5anagement .evie$. 1 '@+ p.

48

Aniversity for the &egree of &octor of Philosophy. 6ta, %ovenant Aniversity. "roblet, <. . et al '122=+. 4uman .esource 5anagement in :outh >ondon, Bedford .o$ 4alcro$, .ecruiters. >ondon, Pearson 4ammersak, :. '1221+. The secret of :trategic .ecruiting, 4o$ to hire better, faster and less expensively in any .ecruitment "uide. T6nlineU (1 p.=7?. market. vailable .esource from, and http,II . '()33+. !mployees frica.

re Mour Best

$$$.bhrc.caI..guide ' ccessed 9I?I 12((+ 4illtrop, 8. F &espres, %. '())*+. Benchmarking the performance of 4uman .esource 5anagement. >ong .ange Planning. 4uman .esource .evie$. 19 '?+. p. *@7=9. 4uang, T. '()))+. The !ffects of >inkage bet$een Business and 4uman .esource 5anagement :trategies. Personnel .evie$. @2 '1+. p.(@17(=9. 8ago, . '())9+. :electing your team, ho$ to find the right people. sian

>ibraries. ? '(1+. p.(*7(). 8ain, <.%. F :aakshi, D.' 122=+. Personnel 5anagement and 4uman .esources. &elhi, ITB: Publishers 8ike, L.T. ttitudes in bu/a

'122@+. 6rganizational Behaviour and <egative

<igerias Public !mployment :ector, The !mpirical <exus. The 5anagement .evie$. = '3+. p. *=7?2

8ones, "., "eorge 8, 4ill, %. '1222+. %ontemporary 5anagement. 1nd !dition. Ir$in, 5c"ra$74ill Dador, 8. '())9+. The 5anagers Book of Kuestions, "reat interesting #uestions for hiring the best person. <e$ Mork, 5c"ra$ N 4ill.
49

Dhatri,

<.

'1222+.

5anaging human

resources

for competitive

advantage,

:tudy of %ompanys

in :ingapore. Internal 8ournal of

4uman .esource 5anagement. (( '1+. p.@@?7@?= >ind#uist, .. F !ndicott B.: '()3?+. Trends in the !mployment of %ollege and Aniversity "raduates in Business and Industry, *th !vanston I>, <orth$estern Aniversity Press 5c%ormick, !. '()9?+. Psychology. %hicago, 4andbook of Industrial and 6rganizational .and 5c<ally. <ickels ;.". et al '()))+. nnual .eport.

Anderstanding Business. =th !dition. A: , Ir$inI5c"ra$74ill. Peretomode, 5anagement, Publishers. Prasad >.5. '()9)+. Principles of 5anagement. <e$ Mork, 5c"ra$74ill. :andra, :. >. '122)+. 4uman .esource 5anagement. <e$ Mork , 5c"ra$7 4ill :chuler, 8. F .andall, :. '()33+. Personnel and 4uman .esource L. F Peretomode,6. Policies '122(+. 4uman .esources

Principles,

and Practice.

>agos, 6gbinaka

5anagement. Third !dition. >ondon , 5c"ra$74ill. :$anepoel, B.et al '1222+. :outh frican 4uman .esource 5anagement.

%ape To$n, Vebra Publications Terpstra, &.!. '())?+. The search for !ffective 5ethods. 4. Bocus. T6nlineU *. p.(?7(9. http,II$$$.vanguardngr.com T ccessed (1I3I12((U ;alker, 8. '())1+. 4uman .esource :trategy. :ingapore, 5c"ra$74ill Book %o. ;ayne, >. '1221+. %reating recruitment ads that $ork. 4. Butur. :outh frican Independent 4uman .esource 5agazine. @2. p.*=7=2 vailable from,

50

gricultural T6nlineU.

&evelopment Bank vailable

'12((+. 4istorical

5ilestones

from,http,II$$$.agricbank.comIenIget7to7kno$7

adbIhistorical milestones.php T ccessed, 1= 8une 12(@U "uaranty Trust T6nlineU. Bank "hana >imited '12((+ %orporate Profile from,http,II$$$.gtbghana.comIabout7usIour7

vailable

bankIcorporate profile.html T ccessed,(2 8une 12(@U Barclays Bank "hana >imited '12((+. Barclays in "hana T6nlineU. from,http,II$$$.barclas.comIafricaIghanaIbarclaysWin.httm 8une 12(@U 5ayo,!. '()*)+. The 4a$thorne and the ;estern !lectric %ompany. The :ocial Problems of an Industrial %ivilization. <e$ Mork, .outledge Taylor, B.;. '()((+. The Principle of :cientific 5anagement. <e$ Mork, 4arper F Brothers vailable 1=

T ccessed,

51

APPENDI= A 3UESTIONNAIRE &ear respondent, this #uestionnaire is designed to collect information on the research topic, -!valuation of .ecruitment pro ce ss ou tso u rcin g i n re la ti o n to th e o rg an i za ti on p e rfo rm an ce . Please do not sign your name N your responses $ill be confidential. Mour co7operation $ould be greatly appreciated. Thank for your time.

SECTION AI RESPONDENTDS PERSONA* IN<OR;ATION 1. Please $hat is your genderG 'Tick $here appropriate+

5ale T U female T U 1. Please select your age group T U belo$ 12 yrs T U 12 N 1) yrs T U @2 N @) yrs T U *2 N *) yrs T U =2 yrs and above @. ;hat is your marital statusG T U single T U married T U divorced *. ;hat is your academic #ualificationG T U diploma T U degree T U professional #ualification =. Please indicate by ticking the bank you $ork $ith T U <B% T U %B T U B .%>!M:. ?. 4o$ long have you $orked $ith your current employerG T U belo$ = yrs T U = N (2 yrs T U (2 N (= yrs T U (= yrs and above 9. ;hat is your current /ob grade in the bankG T U !xecutive ssistant T U !xecutive Trainee T U ssistant Banking 6fficer 52

T U Banking 6fficer T U &eputy 5anager T U 5anagerI :enior 5anager T U 6thers, please stateRRRRRRRRR. 3. ;hich of the follo$ing /ob positions do you fall intoG T U %ashier T U %ustomer information officer T U Bunds Transfer officer T U %redit officers T U .elationship officer T U %ash officer T U others, specifyRRRRRRR ). Mour position in the bank isRRRRRR. T U Permanent T U %ontract T U 6utsourced

SECTION BI RECRUI;ENT ;ETHODS O< SE*ECTED BAN,S (2. 4o$ $ill you describe the recruitments needs of the bank you $ork inG T U planned T U anticipated T U unexpected

((. 4o$ often does your bank recruit people to fill vacancies in a yearG T U at least once T U at least five times in a year T U more than five times

(1. Lacancies occur in the bank as a result of the follo$ing factors 'please tick+ T U transfersI redeployment T U retirements T U resignations T U business expansion T U dismissals T U death

(@. 4o$ does your bank source for people to fill existing vacanciesG 53

T U source for people internally T U source for people externally T U both

(*. ;hen sourced internally, vacancies are filled through 'please select+ T U transfers T U promotions T U upgrading T U demotions T U retired employees T U dependents or relatives of deceased employees

(=. ;hen sourced externally, vacancies are filled throughRRR.. T U dvertisements T U placement agenciesI outsourcing T U unsolicited applicant T U employee referrals T U !ducational Institutes T U /ob fairs T U /ob centres T U others, please specifyRRRRR.

(?. ;hich of the methods belo$ does your bank use fre#uentlyG T U .adio dvertisement T U <e$spaper dvertisement T U TL dvertisement T U !mployee referrals T U Bank $ebsite T U .ecruitment Posters T UPrivate recruitment agencies T U :pecialized recruitment $ebsites T U BriendIfamily of staff

(9.

;hat do you think is the reason for your banks selection of a

particular method's+ of recruitment in the aboveG T U $ide reach T U saves lot of time T U attract the right people T U Increase the pool of /ob candidates at minimum cost. T U help the bank to meet its legal and social obligations T U help increase the success rate of selection process. T Uothers, please stateRRRRRRRRRRR. 54

(3.

;hich of the follo$ing do you think is the most effective recruitment

methodG T U local paper T U /ob centres T U $ord of mouth T U recruitment agency T U apprenticesInational service T U $ebsite T U employees referrals T U educational institute T U others

(). ;hich of the sources listed belo$ do you think are less effectiveG T U local paper T U /ob centres T U $ord of mouth T U recruitment agency T U apprenticesInational service T U $ebsite T U employees referrals T U educational institute T U others

12. ;hich of the follo$ing external factors influence recruitment in your bankG T U availability of skilled labour T U company imageI good$ill T U political7legal7social environment T U competitors T U unemployment rate 55

1(. The internal factors that influence recruitment decisions are the RRRRRRRRRRRRR.RRR T U cost of recruitment T U gro$th and expansion T U size of the company T U others, please stateRRRRRRRRRRRRRRRRRR

11. &oes your company put out adverts $ithout revealing its identityG T U yes T U no If yes $hat is the reason for doing thatG................................................................

56

1@. &oes your company engage in Epoaching or Ebuying talents from its competitorsG T U yes T U no If yes, $hat is the reasons for doing thatG..................................

1*. ;hat are the challenges facing recruitment in your organizationG T U multiple candidate sourcing channels due to shortage of talents T U increased volume of application due to high unemployment T U use of connections and informal contacts to get employment T U difficulty in keeping track of recruitment cost and activities T U poor $ider coverage of recruitment methods T U others, please stateRRRRRRRRRRRRRRRRR.

1=. 4o$ can these challenges be overcomeG T U encouraging $alk7in applicants T U advertising on7line via the internet

T U ensuring openness and transparency T U computerizing handling and tracking applications T U outsourcing recruitment activities T U setting recruitment goals and budget

57

1?. ;hat recommendations $ill you make to improve recruitment activities in your companyG

RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

58

APPENDI= B Inter&%e' 3"e)t%on) (. 4o$ do you vie$ the $orking performance of your $orkerG 1. %an you provide the comparison of $orking performance bet$een the outsourced recruited employees and the in house recruited employeesG @. ;hy do your organizations recruit using outsourcing methodG *. ;hat obstacles do you encounter $hen recruiting using outsourcing methodG =. 4o$ is outsourcing recruitment method beneficial to the organizationG ?. ;hat are your recommendations on ho$ to improve recruitment activities in your organizationG

59