CHAPTER 1

Rationale and Background

Introduction

This is the first part of Chapter 1 and it contains of the rationale and

background of the study, theoretical framework, research paradigm, statement

of the problems, significance of the study, scope and delimitation of the study,

and definitions of terms.

Rationale and Background of the Study

Organization is a social unit of people that is structured and managed to

meet a need or to pursue collective goals (businessdictionary.com). In order to

have a better organizational structure of a firm, employer must have

collaborated with the Human Resource Department in recruiting employees

with good background and skilled person that can be an asset to the company.

Human resource, management involves planning, implementing, and managing

recruitment, as well as selection, training, career, and organizational

development initiatives within an organization.

Employers are critical when selecting the best employees for the

company. In this competitive era, where so many companies are adaptive to

what is it now in this world of globalization, employers are challenge to get the

best applicants that will keep survive the companies in this global market place.

Graduates with better qualifications will have gain these expectations.

Choosing the best graduates can also affect what universities or business

schools they have graduated. If the school is known to produce graduates who

1
are ethical and responsible to become a leader and good employee. This can

also affect the credentials of the graduates if the schools created the best

graduates that would fit the choice of the employers. Also, the basis of the

employers on business graduates, are their past employment. But for fresh

business graduates with no work experience, usually their internships on how

well trained they are.

For addition, in finding the right candidate for the position, a job analysis

might help the employer. As the purpose of job analysis specifically in

recruitment and selection process according to Juneja, P. (2015), is it helps the

employer to determine the right person for the specified job, which includes

their educational qualifications, level of experience and their personal, physical,

technical, and emotional skills.

Therefore, the aim of this study is to determine the employer’s

preferences in hiring business graduates.

Theoretical Framework

Employers look for a graduates who could help the company to be

competitive locally and globally. In an article written by Graduateland Editorial

Team (2017), employers already take expectations to applicant who are

business graduates, for they already have acquired some abilities and skills,

both soft and hard skill which could be a solid understanding into their

learnings on how business world works. This for the employers, will be an

advantage for the business graduates as it demonstrates that they have what it

takes for them to be hired in the position needed by the company.

2
 The researchers will anchor the study to The Human Capital Theory as it

is relates to the employer’s preferences in hiring business graduate. The Human

Capital Theory of Becker (1964), as cited by Ross (2015) in an article entitle

“What is Human Capital and how is it used?”, in which he said that it is the

important contribution to the development of employee which relates to training

and in hiring process. The theory refers to aggregate stock of competencies,

knowledge, social, and personal attributes embodied in the ability to create

intrinsic and measurable economic value in which preferences of the employers.

Human capital as a competency in employers hiring process, is the

qualities and skills that a business graduates must possess in order to prove

and be qualified to standard set by the employer. Those preferences of the

employer are a guide for them to be able to select the best candidates for the

position.

Human capital as a knowledge is an important qualities of a business

graduate, as it is part education learning process together with skills. The

relationship between knowledge and skills possessed by business graduates

has been one of the subject of the employer in hiring and selecting an employee.

It is one of the most important factor that business graduates need to possess

to enhance their employability.

Human capital act as a resource of a company, it is like an investment in

future productivity and not just consumption of resources. Preferences of the

employers in selecting employees must be well-determined in order to select the

best employees that can be the greatest asset of a firm. Mostly employers

looking for business graduates are with strong business insight, good

3
 INPUT PROCESS OUTPUT

The interpersonal
profile of the skills, leadership skills, problem-solving skills and effortless
respondents as to;
Form of business
communication abilities. On the other hand, employers tend to hire employees
Size of the enterprise
Business type
whoofhave
Nunber yearsgreater
in opportunities in career progression, and who are dedicated to
operation
The training
preferredand skills
source of development for being ambitious with clear potential
recruitment and
selection of business
graduates in terms of:
Internal sources
External sources
The degree of
importance of preferred
skills and qualities of
business graduates as
to: Descriptive
General skills
Personal qualities Research
Specialized skills Method Using
Survey
Questionnaire

Determine the

Employer’s Preferences

in Hiring Business

Graduates

4
 Figure 1.
Research Paradigm
The Conceptual Framework

The research paradigm shows the input or information needed for the

study which are the profile of the respondents: forms of business, size of the

enterprise, business type, and years of operation, the employer’s preferred

source of recruitment and selection of business graduates in terms of: internal

sources and external sources and the degree of importance of preferred skills

and qualities business graduates as to: general skills, personal qualities and

specialized skills. The paradigm also shows the process or the method the

researchers will be doing to gather the information and the expected output of

the study. The method the researchers will be using is the descriptive research

method using survey questionnaire and the expected outcome would determine

the employer’s preferences in hiring business graduates.

Statement of the Problem

1. What is the profile of the respondents as to;

a.) Form of business;
b.) Size of the enterprise;
c.) Business type;
d.) Number of years in operation;
2. What is the preferred source of recruitment and selection of business

graduates in terms of:

a.) Internal sources;
b.) External sources;
3. What is the degree of importance of preferred skills and qualities of

business graduates as to:

a.) General skills;
b.) Personal qualities;
c.) Specialized skills;

5
Significance of the Study

The result of this research study would hopefully be beneficial for the

following individuals and to the organization:

Employers, this study could help the employers to select the best

candidate for needed position in the company.

Business graduates, this study could help the business employees on

what are the preferences that an employers of the company find for and to

enhanced their potential even more.

Undergraduate students, this study could help the undergraduate

student to gain more knowledge on how employers recruits and selects best

talents for the position.

Future Researchers, It will serve as a reference for students and

researchers to conduct further similar research.

Scope and Delimitations of the Study

This study is about the employer’s preferences in hiring business

graduates and it will focus on the employers in their respective companies. It

will also be based on the certain standards placed down by the research such

that the respondents have meaning for the data collected. The researchers

delimiting the study within the area of Dagupan City. The study will be

conducted by the researchers during the first semester of the academic year

2019-2020.

Definition of Terms

6
Organization, a social unit of people that is structured and managed to meet a

need or to pursue collective goals, but in this study, companies that need

qualified applicant to boost their business in this competitive market place.

Human Resource Department, responsible for hiring and firing employees,

training workers, maintaining interoffice relationships and interpreting

employment laws, but in this study is they collaborate with employer in

recruiting employees with good background and skilled person that can be an

asset to the company.

Employer, a person or institution that hires employees, but in this study, is the

person that is responsible in hiring business graduates that will fit for the

position needed in the company.

Applicant, a person who applies for something, especially a job, but in this

study, is the business graduate who will be one of the focus of this study.

Recruitment, a process of finding and hiring the best qualified candidate for a

job opening, but in this study, it is the method to find business graduates and

what skills, qualities and abilities they need to be qualified for the position.

Globalization, process of interaction and integration among people, companies

and government worldwide, but in this study, it is the reason why employer

need to be competitive and must have strategic plan when finding business

graduates who are locally and globally competitive.

Business Graduates, individuals who has degree in Accounting, Business

administration, Human Resources, etc. But in this study, these are individuals

7
who will be benefited to this study, as the researcher are gathering information

that would determine the employer’s preferences in hiring.

Job Analysis, process of gathering and analyzing information about the content

and the human requirements of job as well as which job to be perform, but in

this study, this is one of employer’s tool in finding and selecting a business

graduates that has the abilities, skills and qualities for the position needed for

the company.

8
 Chapter 2

Review of Related Literature

In this chapter, the researchers presented studies about the research

that has been reviewed by the researchers which serves as a source of

information in building the foundation of the study which are gathered from

Internet, journals, articles, author and other references.

Foreign Literature

According to Breanne Harris (2019), as cited by Arlene Hirsch(2019), that

assessing performance is focused on the present it will tell you how well a new

business graduates can perform the role today. In his study, he mentioned that

the ability to be successful in a role that goes beyond the business graduates

current responsibilities and also potential is all about what’s ahead and how

the persons or the business graduates soon will perform the knowledge or the

skills they have to impress their employers in the future.

Mary Scott (2019), the founder of the Scott Resources Group, a research

and consulting company in West Hartford, which also cited Hirsch, coined out

that companies that plan to convert interns into the full time employees need to

bring the same rigorous criteria to their hiring of interns as they do in hiring

new graduates for entry level positions. Both employers and business graduates

may need to experiment with a variety of options, including the enhanced

internship opportunities and apprenticeships or trainings.

In an article published by Chau Joanna (2019) entitled “What Do

Employers Want from Business Graduates”, stated technical skills can be learn

9
on the job or in school, but the soft skills are more challenging to get right.

Future employees need to have both technical and soft skills to get their

preferred job in the working environment.

According to Mark Mitchell (2018), as cited by business graduates know

that their employability rises when they have completed an internship or work

placements or if they have a position of leadership in a college club or society.

Mitchell, is a director of gradireland.com. The employers attracted if they’ve got

involved in the student competitions, or give all of their time, energy and also

their effort. Employers wants work ready graduates who have the basic people

and work skills needed to do well.

Alex Vanover ( 2016) ,in his article about employer’s choice, whether they

prefer experienced worker or recent workers , shows that it is neutral, as both

shows risks and potential to be qualified for the position they are applying for,

whether the applicants is experienced or new college graduates .

The study written by Lizzi Hart (2019) that through the ten reasons why

you should hire a recent graduate the first was they’re keen to learn and

progress in order to do this you need to show your working hard as a business

graduate you need to impress employers than ever before, next they will take a

lower salary, because competitive salary for a graduate within the business

area or industry will be enough for them, they have different outlook, they’re

willing to adopt because this is their first job they will want to impress, they’re

clean slate, they’ll question the way things work, they have market knowledge,

they’ll be more comfortable with technology, they’re probably used to

10
multitasking and they have competitive backgrounds. Yes all of the mentioned

as a business graduate you all have that.

Employers look in differences varies from salaries as experienced

workers, MBA and has professional licenses expect a deserving pay for the

years in order to develop their skills unlike from a newly graduates who expects

a lower starting salaries. In training and development require by a certain

company, new graduates can easily be train and adapt for basic system and

later the progress of complete knowledge in the system of organization.

However, for the experienced worker, has difficulty in adapting the system for

because of what they established in their methods they have gain their past

work.

According to Allison Doyle (2019), published an article about how an

employer decide in who to be hire. She tackles in the article that supervisors

and human resources professional or the employers draw up a job description

on which inside it is the preferred qualifications that must be met and will the

basis of the graduates’ jobseeker. On the hiring process, the selection criteria

which includes the skills, qualities and specialization will be used by the

employers as their basis for screening and evaluating of the potential

candidates.

The researchers consider it as an important part of the of the process as

it will be one of the strength of the company. Also, employers will be able to

verify that an applicant has met the certain degree and knowledge that is stated

on the form.

Local Literature

11
 In an article by published Jobstreet Philippines entitled “PUP top

employer’s choice survey” in 2016, they conducted a survey for fresh graduates

to the 550 companies. The result shows that PUP fresh graduates top the

survey where most of the companies prefer to get employees. According to their

findings, PUP graduates has the potentials that companies look for in an

applicant. Respondent-employers on the same survey and why prefer pup

graduates for they are very hardworking and eager to learn, often going extra

mile on task vested to them. In this survey, it shows that most of the company

consider the school where applicants are graduated in. But most of the

employers still look for the skills that a graduates possess. As the manager of

Jobstreet Philippines, Philip Gioco say that as long as the applicant is willing to

learn and to be trained, is flexible and has a good behavior, employers will

prefer them. The researchers believe that for fresh graduates, employers not

also look for the qualities and skills, employers also value experience or

previews internship, in which their applicant had learn so many things on how

is work to be done as they face the real work and more confident to job hunting.

Jessica Fenol (2019,) an ABSCBN journalist, has published an article

about employer’s preferences in fresh graduates. He had interviewed Philip

Gioco, JobStreet Philippines Manager, of which he shares top skills employers

are looking for when hiring fresh graduates. These skills are good attitude and

work ethics, good communication skills, analytical thinking, agility, extra-

curricular activities, and standout resume and in the interview.

The researchers believe that having these skills, will be the key and

armor of the of the fresh graduates as these qualities and skills are what really

12
looking for by the employer. And having the mindset and confidence and

proving it to the employer that they are right person for the job they are

seeking.

Foreign Studies

AL-Mutairi, Naser, and Saeid (2014), conducted a study about Factors

Impact Business Graduates Employability in Kuwait in which are the

knowledge, soft skills factors, personal abilities, and working within groups.

They found that these factors help the business to grow more in a competitive

manner. Business graduates have more opportunities to find a job in different

type of business, that’s why employers are more preferred to the applicants who

has a work-experienced, who can apply theories into a reality, who has

leadership skills that can build a better path and good benefit contribution to

their company.

Competencies Needed for 2015: Employers Preference in Business

Graduate Selection by Laila Zaman in Bangladesh. Business world is affected

enormously because of globalization. It has really become a critically challenge

for employers to attain best talent and good employment and at the same time

sustain economic growth in economic era. Considering the situation, employers

are now looking for those applicants graduated having a business degree who

will able to meet the existing competition and survive in the global market

place. This study basically reveals the preferences of the employers in terms of

business graduates’ selection, where it is clear that personal competency that

includes time management, hardworking, and confidence are more highlighted

13
in the Bangladesh. On top of that, this study helps the graduates for them to be

prepared in entering in to the business world.

National Institutions of Adult Continuing Education (2019), that

employability is better understood as social construct and stressed that to see it

as only an individual issue was to miss important aspects of the concepts. In

this study employers look for people who are flexible and adaptive, willing to

learn on the job, have a have a communication to team players and also exactly

competent and committed to excellence.

According to Penny Loretto (2019), employers are not just looking for the

skills, also they look for a graduates’ jobseeker who have the personal values,

characteristics, and personality traits, as these makes a good foundation to be

an employee. As students are preparing themselves in the real world, an

internship for the students is needed. With the help of the company,

supervisors and managers, the internship of one’s student must get meaningful

learning meaningful experience and become better and productive interns. This

can be one of his asset to be ready and become an employee or be a leader in

any company.

A graduates who possess a strong work ethic, who is dependable and

responsible, has a positive attitude, adaptability to the ever changing

workplace, honesty and integrity, self-motivated, motivated to grow and learn,

having strong self-confidence, and loyalty, will determine your chance and

success to be chosen by the employer and will become part of the company your

seeking for a job.

14
Local Studies

Rappler April 18,2018, published an article about the Jobstreet 2018

report in which employers are looking fresh graduates who has the potential to

be a team player. Employers now claim that aside from an applicant’s attitude

or work ethic, they also place more consideration on communication skills and

analytical thinking as top considerations when hiring fresh business graduates.

This inclination toward interpersonal and 21 st century skills has emerged

as JobStreet.com in the Philippines, the country’s larger online job portal,

conducted a survey involving 503 employers from various parts of the country

in February 2018 as part of its annual Fresh Graduates Report. Based on their

survey in 2015 the top determinants in which are experience-based

qualifications – on-the-job training, extra-curricular activities, and part-time

work experience. This shows that more and more employers are opening their

doors to fresh business graduates, presenting a significant shift in what

employers need in these increasingly digital world.

Plantilla (2017) conducted a study about Employers’ Perspective on

Business Graduates in Rizal in which that employers are satisfied with the

graduates’ who have positive attitude, ability to understand and take direction,

integrity and customer service skills. Based on the survey, 90% of the

employers tend to look for the people who are flexible and adaptive, willing to

learn on the job, team players, technically competent and committed to

excellence.

They also more concerned to work experience, written and oral

communication as one of the most important needed in early career graduates.

15
In the overall, employers are very much satisfied with the specialized skills of

the business graduates, because they believed that knowledge, academic

acquired skills and competencies contributed greatly in their job performance.

Chapter 3

RESEARCH METHODOLOGY

This chapter explains the research design used, subjects of the study

and sampling scheme, data gathering procedures, and the statistical treatment.

Research Design

The researcher used descriptive method of research whose main

objective/purpose is to determine the employer’s preferences in hiring business

graduates in Dagupan City. The survey questionnaire will be the main

instrument in gathering data. The method will be descriptive because it

includes finding out direct responses from the respondents through the survey

questionnaires. The use of this method in this study is to support in the

assertions and definitions which will be made by the noted author which

conform the description of the present study. Furthermore, this is the best

method for this particular study because it provided the much needed

description and interpretation of the existing condition and relationship of

16
prevailing practices and points of view of the respondents in the area of the

study.

Sources of the Data

This study will cover the employers of every business in the area of

Dagupan City. The data will be gathered through survey questionnaire.

Locale of the Study

The study will be conducted in Dagupan City. The researchers chose this

city as their locale because it is a center for a wide business.

Population and Sampling

The one-hundred and fifty (150) respondents from different

employers or business establishment will be determine through the level of

saturation which will be obtained by the researchers and availability of

respondents. The researcher will use convenience sampling technique. It is one

type of non-probability sampling where the sample will be taken from a group of

respondents that are easy to contact or reach.

Instrumentation and Data Collection

The instrument to be use by the researchers in this study is the Survey

Questionnaire.

Survey Questionnaire- is used to gather information from people for

various purposes. They are one of the most convenient and popular methods of

doing so. This data is then collated, processed and utilized according to the

needs of the researcher.

The survey questionnaire to be used will be crafted using questionnaires

from different articles and research outputs.

17
Tools for Data Analysis

The researchers will distribute the questionnaires to the targeted

respondents in their respective organization in Dagupan City to gather data and

information that is needed in the research study. The researchers will use

descriptive statistics to facilitate data treatment and analysis. Descriptive

research is also called Statistical Research. The main goal of this type of

research is to describe the data and characteristics of what is being studied.

The idea behind this is to study frequencies, averages and other statistical

calculations. It is mainly done to gain a better understanding of the topic. The

answer in the questionnaires will be tallied, tabulated, analyzed statistically

using the following statistical measures and tools.

Different sub-problem will be strategically treated as:

For sub problem no. 1, along with the profile of the respondents,

frequency count and percentage will be used. Frequency count is the most

straightforward approach to working with quantitative data. Items are classified

according to a particular scheme and an arithmetical count is made of the

number of items (or tokens) within the text which belong to each classification

(or type) in the scheme. While percentage is a way of expressing proportion a

ratio or fraction as a whole number, by using 100 as the denominator.

To answer problem no. (2) What is the preferred source of recruitment

and selection of business graduates; (3) What is the degree of importance of

preferred skills and qualities of business? Another statistical treatment of data

that was used in this study is through a weighted mean.

18
 Weighted Mean (WM) – an average that takes into account the

proportional relevance of each component, rather than treating each component

equally.

∑ fx
Formula: WM = ∑f

Where:

WM = Weighted Mean

fx = Sum of all products of f and x; where f is the frequency of

option and x is the weight of each option.

Weighted Mean. This was used to determine the average score of the

responses by the respondents' appraisal based on the options in the items given

in the questionnaire. This also gives a composite rating per item.

Numerical Value Statistical Limit Descriptive Rating

5 4.21-5.00 Highly Preferred (HP)

4 3.41-4.20 Preferred (P)

3 2.61-3.40 Neutral

2 1.81-2.60 Moderate Preferred (MP)

1 1.00-1.80 Not at all

19
 Bibliography

Articles

Graduateland Editorial Team (2017, October 4). What employers want from
business graduates? Retrieved August 18,2019 from
https://graduateland.com/article/job-search-for-
buisness-majors/

Juneja, Prachi (2015). Employee Selection Process. Retrieved August 17,2019

from https://www.managementstudyguide.com/employee-selection-
process.html/

Ross, Sean (2015, March 27). What is Human Capital and How is it used?
Retrieved August19,2019 from https://www.investopedia.com/ask/
answers/032715/what-human-capital-and-how-it-used.asp

Jobstreet Philippines(2018).Fresh graduates hiring shows shifts in demand and

preferences. Retrieved August 19,2019 from https:// www.jobstreet.com
/career-resources/fresh-graduate-hiring-shows-shift-demandpreferences
#.XVp8F2QRWDY

Pantilla, Ariel (2017) Graduates Performance in the Workplace: Employer’s

Perspective. Retrieved: August 19, 2019
https://www.academia.edu/

20
 32948085/Graduates_Performance_in_the_Workplace_Employers_Perspe
ctive/

Jobstreet Philippines(2016), PUP top employer’s choice survey. Retrieved

August 19,2019 from https://www.jobstreet.com.ph/career-
resources/pup-tops- employers-choice-survey#.XVrq5mQRWDY

Vanover(2016). Comparing Cadidates: Should you hire Experienced Workers or

Recent College Graduates? . Retrieved August 19,2019 from
https://www .business..com/articles/should-you-hire-experienced-workers-or-
recent- college-graduates/

Hirsch, Arlene (2019, April 12). Why Hiring Managers Expectations for New
College Graduates May Be Un Realistics? Retrieved Aug 19, 2019 from
www.shirm.org/resourceandtools/hr-topics/talents-acquisition/pages/
managing-hiring-manager-high-ecxpectation-for-new-college-graduates.
aspx

Chau, Joanna (2019,April 11). What Do Employers Want from Business

Graduates? Retrieved Aug 19 2019 www.mba.com/mbas-and-
business- masters/articles/your-career-path/what-do-employers-want-
from-busi ness-grads

Mitchell,Mark (2018) Musgrave wins best graduate employer of the year

award . Retrieved August 19,2019 from https://www.irishtimes.com
/topics/topics-7.1213540?article=true&tag_person=Mark+Mitchell

Hart, Lizzi (2019,July 17). 10 Reasons Why You Should Hire a Graduate.
Retrieved Aug 19, 2019 from www.glassdoor.co.uk/employers/blog/10-
reason-hire-graduate/

Fenol,Jessica (2019,march 25). Plug-and-Play: What employers look for in a

fresh graduates. Retrieved August 19,2019 from https://news.abs-
cbn.com/business/03/25/19/plug-and-play-what-employers-look-for-in
-fresh-graduates

21
Loretto, Penny (2019,june 08). Developing a Successful Internship Program .
Retrieved August 19, 2019 from
https://www.thebalancecareers.com/developing -asuccessful-internship-
program-1986608
Journals
Abdullah,Naser & Muna (2014) . Factors Impact Business Graduates
Employability: Evidence from Academicians and Employers in Kuwait.
International Journal of Academic Research in Economics and
Management Sciences 3
Others
Busines Dictionalry from www.businesssdictionary.com/definition/organizatio
n.html

22