The Impact Of Recruitment And Selection Practice On Firm Performance (A Study Of Several Firms In Port Harcourt)

Project and Seminar Material for Business Administration and Management (BAM)

Project and Seminar Material for Business Administration and Management (BAM)


The office of Recruitment and Selection practice on firm performance in many firms we investigated upon and analysed.

The 60 respondents from 17 insurance companies in port Harcourt Metropolis, the hypothesis that formalized policies have significant and positive impact on firm performance was tested. The issue between placement o qualified personnel in key functional areas and attainment of on firm performance was also tested.

It was found that through recruitment selection and placement of employees have some effects on firm performance. It was pointed out that the overriding aim of organizational policy should note just only formulating formalized personnel. Such as fringe benefits, remuneration, promotion, higher pay, training and development should also be considered.

From the analysis, it was also found that most organization prefer the placement of qualified personnel in key functional areas, than promoting an employees who rose through the ranks often shy away from challenging responsibilities which may be associated with such promotion.

Table Of Contents

Preliminary Page(s)

  • Title
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Contents

Chapter One


  • 1.1 Background Information
  • 1.2 Statement of the problem
  • 1.3 Research Question
  • 1.4 Objective of Study
  • 1.5 Hypothesis
  • 1.6 Significance of Study
  • 1.7 Limitations of the Study
  • 1.8 Definition of Terms
  • 1.9 Organisation of Study

Chapter Two

Review Of Literature

  • 2.1 Recruitment Police.
  • 2.2 Stages in the Recruitment Process
  • 2.3 Recruitment Defined.
  • 2.4 Recruitment and Human Resources Management Relationship.
  • 2.5 The impacts of Organizational Reputation on Recruitment
  • 2.6 Designing a Recruitment Programme.
  • 2.7 Recruitment Sources
  • 2.8 Developing Sources of applicants
  • 2.9 The effectiveness and Evaluation of recruiting
  • 2.10 Summary
  • 2.11 Selection
  • 2.12 .Types of Selection
  • 2.13 Problems Associated with Selection
  • 2.14 The Selection process
  • 2.15 Selection Method Validity and Reliability
  • 2.16 Conclusion.
  • 2.17 Placement.

Chapter Three

Research Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Sampling Procedure
  • 3.4 Questionnaire Design
  • 3.5 Data Collection
  • 3.6 Data Analysis Technique

Chapter Four

Presentation And Analysis Of Data

  • 4.1 Introduction
  • 4.2 Descriptive Analysis
  • 4.3 Hypothesis Testing
  • 4.4 Summary

Chapter Five

Discussion, Conclusion And Recommendation

  • 5.1 Discussion
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography
  • Appendix A – Questionnaire
  • Appendix B

Chapter One


1.1 Background Information.

The effectiveness of an organization is function of high intelligent decision and policies manpower planning. It demands a good knowledge of to recruit, select and place an employee in an organization to achieve the employee.

The proper application of recruitment, select and placement policies an organization has been major concern of most personnel managers. Where any the above mentioned procedures are not properly in the organization which in turn affects its effectiveness.

The impact of recruitment, selection and place of employees on firm performance cannot be emphasized . This is true because, It is the cannot be people are brought into the organization and it essentially forms the basis for acquiring good quality employees in the organization will successfully achieve its objectives its objectives will be accomplished if the right caliber of employees are recruited, selected and successfully placed since organizational goals are not different from the peers”.

One of the test of an efficient personnel department is its ability of fill job position promptly and adequately. This means that the department must know the sources of different types of applicant for the job position that it has to full. Recruit and selection alone are vital elements commonly used in the process of employment. After recruitment and selection has taken place, the potential job holder may either e sent on training or not depending on the training needed and of course the feasibility of training before being placed.

It is expected that Recruitment and Selection practice are associated with some positive and negative effects on firm performance.

Under recruitment, the internal source which is one of the most useful, though often neglected, sources of manpower, recruitment policy is based on utilizing present personnel through transfers, promotion, recalls from lay off or retirement. This as a matter of fact, reduces the cost of spending in developing sources of applicants e.g. advertising in newspapers, Radio and Television etc .This sources is known to very reliable, since it is dealing with employees whose ability is already which finally results to organizational effectiveness. There are also some disadvantages in over-reliance on internal sources . It may act as a shelter to project inefficient employees from active competitive superior employees from outside the organization.

In the contrast, hiring from outside may help to reduce the inbreeding often associated with internal sources .The external source deals with people who are current employees by of the company. The people that fall under this category are under-employed unemployed persons, newly qualified applicants and dissatisfied workers. These experienced outside employees will act like new –brooms and they sweep clean. They bring with enthusiasm, new Ideas and new spirit of competition into the organization when recruited, selected and placed in the right position.

Selection follows immediately after recruitment. The essence of selection is to match applicants with job openings .It is important to have through knowledge of position to be filled coupled with the skills, abilities, aptitude and other tracts of the applicants that will be necessary for success in position as to avoid problem associated with selection exercise i.e. a false positive error, a false negative error, selection ratio and the like. A good selection exercise reduces cost as it reduces turnover rate and employee dissatisfaction.
As quested by CC. Nwachukwu, 1988, that placing an employee in a job that he is not qualified to do robs, him of his intrinsic satisfaction and make him doubts his ability and becomes a threat to himself and the entire organization.

Therefore, as personnel managers, greater care a should be taken in those employment producers and policies by adhering to manpower or human resources requirements of various department and eliminating bias, favoritism and the like in order to achieve and increase on firm performance in term of output.

1.2 Statement of the problem:

It is very essential to have a close look on the policies that have effects on recruitment, selection and placing in an organization as an issue enhancing or militating against the manipulation of manpower planning process as it relates to personnel

Department of an organization.. A good and intelligent decision of the personnel manager in choosing the right person, into the right position at the right time brings an emergence organization effectiveness . This is true because there is no extent of advancement In technology that can opt for a total with of manpower resources. Manpower must contribute conceptually and physically in one way of the other of the stages, in collaboration with machinery to achieve a goal directed objective or an expected output. Host of the personnel managers include in their policies the placement of law level inexperienced manpower in a high position at the expense of high level experienced manpower as a measure in reducing cost of hiring employees

Actually, this position mismatch must reflect in the performance of the employee as well as the on firm performance. Then the main question is, can the impact recruitment, selection and placement affect the on firm performance.

1.3 Objectives of the study:

The purpose of this study include the following:

  1. To know the impact of Recruitment and Selection practice on firm performance.
  2. To discover most policies that pose problem in the operations of the employment process.
  3. To establish the need for proper placing of employees in the right position at the right time.

1.4 Research Questions:

  1. Does Recruitment and Selection practice of employees determine the effectiveness of an organization?
  2. Is the policy of the matching the employees needs and abilities with job requirement necessary?
  3. Does the position in which employees is laced and his qualification affect on firm performance.

1.5 Hypothesis

In order for a through study to be carried out, well framed and properly defined hypotheses must be stated to provide specific guidance to the researcher as to the kind of data to be collected in the study, and also, the method of analyzing such data. In that light therefore, the following hypotheses will be considered in the study.

  1. Formalized recruitment policies have significant a positive impact on firm performance.
  2. There is a positive and significant relationship between placement of qualified personnel in the key functional areas and attainment of on firm performance.

1.6 Significance of the study:

This study is intended to throw more light on the controversial issue of whether the impacts of recruitment selection and placement can influence the on firm performance . These effects can be deduced from knowing the various policies on recruitment process, sources of applicants developments, methods of recruitment, evaluation of recruitment, problems associated with selection exercise selection process, steps in selection process and properly placement.

This study will also help firm managers, scholars and the like, to add to their existing knowledge the positive and negative reactions of the subject matter on the employees and organization.

Moreso, this study will help us to be conversant with the impact of some employment policies. This will help in circumventing some hurdles at the initial stage. This is true because, there are no apparent devices to disclose the traits of am employee. But to achieve a predicted success in personnel department, we can only use our accumulated knowledge based on the study of the impacts of recruitment selection and placement to attain our targeted objectives.

Therefore, this study will help in developing the intellectual vigour of the researcher and as well add more personnel knowledge to the existing one. It will also enlighten any reader who picks on this work and will aid the readers understanding on how the impacts of Recruitment and Selection practice influences the on firm performance.

1.7 Limitations Of The Study

This study did not in any way have its finding straight forward without any hindrance along the line. In other words, certain factors seriously acted as constraints to the study.

The first problem encountered was in the area of time, the time required for the completion of this project was short considering the fact that the project was approved very late; moreover, this problem became more evident on the great deal of other academic works being given to us at the same time which also requires immediate submission of the solution.

Secondly, there is lack of adequate materials. This can be evident from the fact that incessant closing of te campus hampers our opportunity of getting access to the library to facilitate my research.
Another problem encountered in this study was finance. This lead to my not being able to photocopy a large number of articles and journals that treated the issue. In any case, I was able to photocopy the most related ones the other copied out.

From the constraints, it will not be denied that actually, the researcher found this study very hectic and effort demanding.

1.8 Definition Of Terms:


this is the process of searching for prospective employees and stimulating them to apply for job in the organization.


This is a screening device designed to scrutinize among those who have applied and who best fits the post so advertised.


this involves matching accurately the different job vacancies with the employee, which centers primarily on placement policy.

On Firm Performance:

This is measured to a degree to which the goals achieve the objectives. That means effectiveness could be measured to a certain degree to which the means achieve the end.

1.9 Organization Of Study:

The presentation in this study is organized into five chapters.

Chapter one highlights the introduction of the study and discusses the conceptual and theoretical perspectives relevant to the theme of the study. It covers the context of the problem, statement of the problem, purpose of the study, definition of terms, the research hypotheses, significance of and the limitation of the study.

Chapter two presents the review of relevant literature. This chapter extensively reveals the reviews on the impacts of recruitment, selection and placemen t on firm performance.

Chapter three presents the research methodology; it describes the research design, sampling procedure, and questionnaire design and data collection.

Chapter four presents the data analysis and findings. Finally, chapter five presents the discussion, conclusion and recommendations.

Chapter Five

Discussion, Conclusion And Recommendation

5.1 Discussion:

One of the major aims of this study is to find out the impacts of Recruitment and Selection practices of employees on firm performance. The personnel selection and development functions of management are not separate activities, but are parts of a continuous process directly focusing on the acquisition and maintenance of human resources in business concern. The selection and development of workers should not be isolated from other organizational process, because all personnel management activities are part of a total system of organizational behavior.

A firm’s personnel policies in hiring employees are most critical. The success of failure of firm hinges upon the skills and abilities of its management and operating personnel. Although three are some other variable that can have effects on the effectiveness of an organisation. It is necessary therefore to formulate policies and plans to obtain access to a supply of qualified people and to carefully choose from this supply those who can contribute most to the objectives of the organisation.

The hypothesis that formalized employment policies have significant and positive impact on firm performance was accepted. The inference drawn which consult most of the past policies that yielded an expected result can be used to forecast the future result.

This hypothesis is buttress by the fact almost all the respondent made a positive affirmation that they use a laid down Recruitment and Selection practice policy in their employment procedure. This means that employees would be more committed to make correction in the policies if there is a deviation in the plan than when the policies are conventional or not laid down. George Straus and Leonard 5 (1967: p.449-485) astutely put it clear that some personnel management problem will determine if a laid down policy of conventional method can be used in a form’s employment procedure.

These problems are as follows:

  1. The firm’s manpower needs what type of personnel are required and in whet numbers?
  2. The types of labour supply that can be used to obtain the necessary personnel are both internal and external sources readily available.
  3. What method and promotions should be used to encourage the “right” people to seek employment with the firm?
  4. What selection procedures should be used to decide which applicants to choose for what problem

The explanation of those problems involves analyzing the importance of looking into the future operating plans and carefully estimating the number and types of employees’ managerial skills that will be needed, both for the present and for the years to come. This forecasting includes considering such factors as the size and composition of existing workforce, the plan for company growth, the anticipated changes in operating technology and projected turnover of personnel. However,, certain other factors can come into play here like the cognitive bases of workers behavior which are different strong individuals.

The hypothesis that are there is a positive and significant relationship between placement of qualified personnel in key functional access and attainment of on firm performance was accepted. This fear could be associated with what is called the Peter’s principle as cited in Koonz et al (19y84: 584) “that managers” tend to| be promoted to their level of incompetence, especially if a manager succeed in a position, often this very success may lead to promotion to a higher position, often one requiring skills that the person does not possess. Such a promotion may place a manager “over his or her head”. Another way of looking at this could be from the fact since most of the workers rose from the ranks, they have now perceived that they may not be able to cope with the dynamic nature of the environment or in areas of responsibility that may fall within their scope.

A critical look at all these deduction and inferences from the findings do portray the importance of a proper selection and placement policies as a tool for on firm performance.

5.2 Conclusion:

The concept of recruitment, selection, placement and on firm performance is central to the theory and practice and ultimately we shall highlight and finally conclude.

In trying to establish the relationship between the dependent variables, it was rather disturbing to find that the dependent variables, it was rather disturbing to find that the dependent variables have a direct impact on firm performance. However, it was found that Recruitment and Selection practice could have effect on firm performance.
This issue raised in the review of literature was on how the employees an the unit performance should be factored to represent the organizational performance it determines whether the findings of this study could be generalized.
Many books have opined that some organisations state some other factors like the working condition, authority structure, opportunities for challenge and growth, the many other factors within the work environment as major priority in their organizational policies as a measure of attaining on firm performance. This recruitment selection and placement are important but represent only one part of a complex of interrelated factors.

It could be pointed out that the findings of this study are suggested rather than conclusive. This is so because the theoretical and conceptual framework under the research was conducted does not portray an evaluation. From the foregoing, we may conclude that Recruitment and Selection practice of employees have some effects on the attainment of on firm performance, all things being equal.

5.3 Recommendations

Generally, the weight of our evidence suggests that formalized recruitment, selection and policies can lead to on firm performance, particularly when the policies are selected, implemented and executed with great care and sensitivity.

From the fact that the on firm performance may not reach the desired level always, it then means that the advantages of the employment tools have not been optimally utilized.

I therefore put up the following recommendations:

  1. Organisations should have a set standard which can be used to measure performance and to enable them depict the area of the policy, a deviation has set into the total Organizational policy.
  2. Employers should undertake periodic studies of employment policies to enable them change to the taste and trend of the time, design the work to suit the individual and be more careful during recruitment you select those employees that already have the skills required by the organisation.
  3. The recruitment Prediction should be based on the cost and benefit analysis to achieve an intelligent personnel decision.
  4. Great care should be taken to place employee in particular position to avoid opposition from other employees, otherwise, distrust and hostility among employees can easily spell demise on the on firm performance .
5.3.1 Recommendation for further research:

The study has been quite comprehensive but not exhaustive . As usual with studies of this nature, we have only been able to touch upon a very small, albeit important, aspect of the large field personnel process and on firm performance. But even there, a large number of issues have been raised and may possibilities uncovered for further research. Such area as :

  1. How to determine the most appropriate employment process and policies?
  2. How to curtail the cost of Recruitment and Selection practice of employees in an organisation?
  3. To what extend organizational are willing to march the employment policies with other organizational policies?

On the whole, this study can seen as a ground breaking one . It is hope the field will attract other researches so that more light would be thrown on the topic

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