Advances In Management. Vol.

3 (2) February (2009)

Case Study:
I Recruitment and Selection Practices in SMEs: Empirical
Evidence from a Developing Country Perspective
Ongori Henry* and Temtime Z.
I Department of Management, University of Botswana, Private Bag 00701, Gaborone. BOTSWANA
*ongorih@mopipi.ub.bw

Abstract this era? SMEs needs to change their hiring practices in order
This paper purports to investigate the to remain competitive and strategically positioned in the
recruitment and selection practices of SMEs and business world. SMEs are said to play a great role in the
development of entrepreneurship skills in developed and
suggests appropriate .strategies on how to improve
developing economies and they are also credited as the agent
hunian resource management practices to enhance
of development, poverty alleviation and wealth creation.
organisational performance. Recruitment and selection Previous studies reveal that effective recruitment and
practices are the key factors to the entry point of selection practices are consistently cited as the key factors
human resources to any organisation which also tends influencing the success of SMEs^'^'^'''^. Recruitment and
determine the success and sustainability of SMEs. These selection practices are considered as the core elements of
practices are said to encourage innovation, survival human resources (HR) function because of their importance
and growth of SME if taken serious by owner/ in sustainability of SMEs*'^°'^'. However, due to great
managers. Many studies which have been conducted on competition SMEs are compelled to change their strategies in
recruitment and selection practices by SMEs have only recruitment and selection practices in order to remain
strategically competitive^. For instance global competition,
concentrated on large and multinational firms on the
with rapid technological change and escalating product
west and little has been done on recruitment and variety has put new and great demands on SMEs to have the
selection of SMEs in developing economies and yet right employees to cope with these changes. Furthermore, as
SME tend to contribute a lot in employment creation SMEs enhance their economic activities, they are forced to
arid economic growth. This research therefore tries to expand their workforce. This has also compelled SMEs to
develop unique recruitment and selection practices learn on how to develop and implement the best human
which are applicable to the needs of SMEs in resource management (HRM) policies in line with business
developing countries. The random samplings of eighty strategy. Previous empirical studies demonstrate that SMEs
managers/owners of SMEs were selected for the study, who have recruited the right employees, at the right time,
doing the right activities in the organisation are in a position
in which data were analyzed by using descriptive
to survive and grow in any business environment"''^"'. Most
statistics. The paper contributes to the body of
economies are moving towards service and information
knowledge especially in provoking a debate amongst economy which has really increased competition for the
managers/owners to come up with appropriate talented individuals from the labour market. Recruitment and
strategies to encourage SMEs to develop formal ways of retention of employees can be the most pressing challenge
recruitment and selection practices in organisations. facing SMEs today'^. Most research which has been done on
TAefindingfr;oni the study shows that most SMEs tends recruitment and section practices are in large enterprises and
to practice both informal and formal approach in hiring multi national corporations with little/limited research on
their employees. The limitation of the study is that the SMEs in developing economies and yet they contribute a lot
sample size selected was not large enough to generalise to these economies'^.
the results.
Therefore, this paper tends to investigate the
recruitment and selection practices in SMEs and recommends
Keywords: Hiring practices, recruitment. Small Medium and
Enterprise (SMEs), selection, strategies. appropriate strategies to be adopted by managers/owners to
enhance the performance of SMEs.
Introduction Literature review
! With the advent of globalisation some organisations
Recruitment is a process which involves systematic
are likely to go under, some will survive and some will not
steps that a company or a firm needs to follow in order to
only survive but will prosper. Organisations continually seek
make sure that they have attracted right individuals who end
for ways and means to become more productive, efficient and
up with the right company, doing the right job so that
competitive. The question now is how will SMEs survive in
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Advances In Management. : Vol. 3 (2) February (2009)
organisation overall goals are achieved'^. In addition, or person specification; due to inadequate information such as
recruitment is considered as a process that is supported by job being insufficiently inventive in drawing up the
^^
analysis, job description and job specification^^ advertisement and not highlighting the facts of re-advertising
a job; including realistic closing date; will not aid the
Managers often use several approaches at their organisation to attract large pool of applicants. There are too
disposal to attract large pool of applicants. In order to many aspects in recruitment process that should be taken
maintain organisational ability and sustain competitive seriously in order to achieve good recruitment objectives of
advantage will depend on the ability of the organisation to SMEs which needs a lot of sacrifices'"'^". Bad recruitment in
attract and retain individuals with skills needed to give the SMEs usually arise due to poor job analysis, inadequate
organisation a competitive edge'". The recruitment methods personality skill profile, inadequate interviewing techniques
used in order to attract applicants do vary according to the and inadequate questioning.
industry or organisation or the type of position that needs to
be filled''•'•\ For example some of the recruitment approaches Selection is a systematic process of choosing the
such as newspaper advertising and employment agencies are best applicant to fill the position available. Structures and
regarded as formal recruitment methods and have a great processes to evaluate each candidate's skills and experience
impact in attracting lafge^pool of applicants. Informal are necessary to ensure that the right applicant(s) is (are)
recruitment methods are highly associated with smaller selected from among the many qualified applicants'^.
organisations and provide potential applicants with accurate
and detailed information about the organisation and the job. Selecting the right employees is very important to
This information will usually assist applicants to make SMEs because 1) the performance contribution to the
informed decision between accepting and declining the job organisation depends on the subordinates, 2) It is costly to
offer'"'''*'"''^'''". Previous empirical studies have demonstrated recruit and hire employees because expenses are incurred
that informal recruitment methods when applied produce such as search fees, interviewing time, reference checking
employees who have a long tenure of stability with the and travelling and moving expenses and 3) there are legal
organisation^ Further, Massey^^ argued that internal implications of incompetent hiring. Selection should be done
recruitment methods, such as employee referrals, realistic job in a systematic way to avoid negligent hiring claims by I)
reviews tend to provide potential applicants with accurate and carefully scrutinizing all information supplied by the
detailed information about the organisation and the job. In applicant 2) getting the applicants' authorization for reference
this way, applicants can be in a position to make an informed checks and carefully checking references, 3) rejecting
choice between accepting and declining the job offer 14.16,31 applicants who make false statement related to the job, 4)
applicants privacy should be kept-confidential in case of any
Informal recruiting sources are said to yield greater damaging information and 5) taking immediate disciplinary
proportions of high-performing employees. For instance, action if problems arise'". Furthermore, selecting right
informal sources (such as direct applications and employee candidate is hard work and an organisation reputation is
referrals) will tend to yield higher performers and more stable known by the people it keeps. To keep good people, it must
employees than formal recruiting sources. Similarly external start with getting good people first''.
sources are more likely to provide a rich source of fresh talent
and ideas to the organisation"*'"^. The external methods Previous empirical studies^''^ argued that those
commonly used include advertising, employment agencies, organisations that have properly recruited and^ selected their
colleges/ /universities, referrals and walks in and recruiting employees will continue to enjoy competitive advantage over
via internet. those who have ineffective selection hiethods and have
accumulated ineffective employees. Furthermore, Abdulai'
Hamish'" argued that organisations should not rush argued that if you have the right person in the right place, you
into recruitment; delegate recruitment and fail to look abroad do not have to do anything else but if you have the wrong
for talents in the market. The failure to provide a proper job person in the job, it is not a good a management system.

Selection Process Reasons for Re.jection

I. Formal Application Deficient qualification , ,
2. Application Insufficient ability, ambition or poor interpersonal qualities
3. Testing Poor test score
4. Reference checks Poor references
5. Physical Examination Physical unfit for the job
6. Analysis/Decision Overall potential is low

Fig.l: Steps in Selection Process: The Case of Rejection Job Applicants

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 Advances In Management. Vol. 3 (2) February (2009)
affects the organizational performance of SMEs. Recruitment interview has shown to increase the possibility of new
is the entry point of manpower to SMEs and there is need for applicants in accepting job offer. This demonstrates that the
those entrusted with the responsibility to use formal selection process of many SMEs is outsourced. This strategy
approaches to attract large pool of applicants through is not in the best interest of SMEs in recruitment and
advertisements, newspapers and internet. This will enable selection of employees skills of the applicants is considered
SMEs to attract and retain the right quality and quantity of 66 (83%).The empirical findings showed that SMEs
erriployees. On whether managers or owners do encourage owner/managers do appreciate the need for hiring
internal recruitment of employees, the results indicated that employees on the basis of their knowledge, skills and ability.
60 (74%) of the respondents agreed that internal recruitment This finding is consistent with Moy and Lam^' who found out
is given priority. Internal recruitment boosts the employees that applicant must be hired on the basis of their skills and
morale, promotes loyalty and it enhances employee relations knowledge. Similarly the respondents were asked to rate
in organisation. whether when hiring non- managerial employees technical
skills are considered, the results indicated that 56(70%)
The respondents were also asked to rate whether job agreed to the statement. This reflects that SMEs
analysis is done before doing the recruitment process, the owner/managers value the importance of having the right
enipirical findings indicated that 65 (81%) disagreed. This people, at the right place, doing the right things in the
reflected that most managers/owners of SMEs do recruitment organisation. This to a certain degree will reduce employee
process without having conducting detailed job analysis. turnover experienced by many SMEs.
This trend is not good for SMEs. In the absence of job
analysis, the entire process of recruitment and selection will On the aspect whether during selection process
bei jeopardised ^^'^ this will make SMEs to end up having reference check is used, the results indicated that many SMEs
human capital which is not compatible to their needs. On the surveyed do not use it 55(68%). This demonstrates how risky
aspect whether managers monitors the recruitment and it is to select employees without proper background
selection process of employees, the results indicated that information. Although managers have the right to select the
55(69%) disagreed. This clearly demonstrated that there is right employees to their organisation, there is need for cross
high degree of laxity on the side of owner/managers of checking of factual information given by the applicant in their
SMES in monitoring the recruitment and selection process. curriculum vitae. Thus Mulling'^ argued that decisions made
' This trend is not good for SMEs human capital management. in rush situation can be disastrous to the organisation. On the
There is need for close supervision of recruitment and variable whether good recruitment and selection practices can
selection process to safeguard negligent hiring implications. retain employees in SMEs, the results indicated that 54 (68%)
Owner/ managers were also asked to rate whether they do ofthe respondents agreed. This shows that managers in SMEs
consider external sources of recruitment in their organisation, appreciate the need of having good practices pertaining to
the empirical findings indicated that external sources are recruitment and selection. On the variable whether bad hires
considered 53(66%). Thus owner/ managers of SMEs do are practiced in SMEs, the findings showed that 62 (77%)
appreciate the need for injecting new skill/talents to the agreed. This demonstrated clearly that SMEs lack good
organisation. policies and procedures on recruitment and selection. Bad
recruitment and selection practices include hiring employees
Recruitment and selection do not aid orientation and without relevant skills, doing recruitment without proper job
training of employees 45(56%). This indicated that many analysis, inadequate interviewing and failure to verify the
SMEs surveyed do not orient their employees properly after information provided in the curriculum vitae. Abdulai'
hiring them. This approach in the long run will affect the stated that having the right people, in the organisation will
employee's performance. On the issue whether there are clear make SMEs to be strategically positioned in the business
procedures used in selecting employees into the organisation, environment
the findings showed that 56(70%) of the respondents
disagreed. This clearly showed that formal procedures are Headhunting approach is used in hiring managers 45
not in place in many SMEs surveyed. This is not good trend (56%). Thus owners /managers of SMEs do understand the
for SMEs sustainability and growth in this era of need of having good managers at all levels of the
globalization. Similarly the respondents were asked to rate organisation. Finally the respondents were asked to rate
whether in selecting process, interview approach is used. The whether all new employees are subjected to compulsory
empirical findings showed that the interviewing of employees medical examinations. The results showed that 45(56%) of
is done partially or not at all. The same case applies to the respondents disagreed. However, 15(19%) were
employment tests 59 (73%). Barclay^ argued that there is undecided, while 20(25%) agreed. This demonstrates that not
need for interviewing approach to be used in selection all new employees are subjected to medical examinations.
process to assist in selecting the right applicant for the job. SMEs need to have the right quality of employees who have
Furthermore, Kotey and Sheridan'* stated that structured undergone thorough medical examination successfully to
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Advances In Management. ..Vol. 3 (2) February (2009)

minimize unnecessary medical costs of new employees. academic researchers who might assist SMEs directly or
indirectly. The limitation of the study is that the sample size
Conclusions and Implications selected on the basis of convenience may lead to biased
Recruitment and selection practices do exist in results. Besides the sample size was not large enough to
SMEs but most of these practices are not well documented. In justify the generalisation of the results. Therefore there is
recruitment of new employees, owner/managers do consider need for conducting research using longitudinal approach to
both internal and external sources. In this era of globalisation validate these findings. In future there is need for sample size
, SMEs need to retain qualified employees in order to have selected for the study to have a large geographical outlook.
competitive advantage. Reference checks tool must be used This will enable the researchers to have a clear insight on
and it is reccommmeded that it should be used with other recruitment and selection practices in SMEs. Future
approaches to enhance chances of selecting the right researchers should try to find out how good recruitment and
personnel who will have long term stability of tenure with the selection practices will be used as one of the strategies in
organisation. Bad hires should be highly discouraged in retaining employees in SMEs. In addition they should
SMEs and this will be avoided by conducting a detailed job consider triangulation methods of collecting data to get a
analysis before recruitment and selection process takes place. comprehensive view on hiring practices in SMEs.
Job analysis information facilitates the process of getting the
right personnel for the job. Medical examinations of all new References
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the organisation to ascertain their healthy liability and to Sector Management, 13(5), 5-7 (2000)
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2. Babbie E., The practice of social research, Wadsmouth, Belmont,
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These findings will provide valuable information to
policy makers, SMEs training organisations, consultants and

Table 2
Perceived recruitment and selection practices in SMEs (N=80)
Combined scores
Variables SD+D N SA+A
No. % No % No %
Formal policies on recruitment and selection in place 18 23 22 28 40 49
Appropriate media is used to attract applicants 45 56 16 20 19 24
Manager.s/ownets encourage internal recruitment 10 13 10 13 . 60 74
Job analysis used in recruitment and selection 65 81 10 13 5 6
There is close monitoring of the recruitment and selection process 55 69 14 18 21 13
Managers/owners encourage external recruitment 7 9 20 25 53 66
Recruitment and selection aid orientation and training 45 56 21 26 10 18
Clear procedures are used for selection of employees 56 70 10 13 14 17
Selection process interview / employment tests are used 59 73 9 II 12 15
Skills are the most important hiring criteria 14 17 - - 66 83
In hiring non managerial employees, technical skills are considered 14 17 10 13 56 70
In selection process managers use reference checks technique 55 68 15 19 10 13
Good recruitment and selection practices retain employees 21 26 5 6 54 68
Bad hires aie practiced in SMEs 18 23 - - 62 77
Headhunting approach is used in hiring managers 25 31 20 25 45 56
Medical examination of employees is compulsory for new hires "• 45 56 15 19 20 25
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Advances In Management,, Vol. 3 (2) February (2009)
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(Received lO'^ Septetnber 2009, revised 15* October 2009,
21 .i Moy J. W. and Lam K. F., Selection criteria and the impact of * December 2009)
accepted 20*

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Advances In Management. Y.oL3 (2) February (2010)

Case Study:
'The Art of Decision Making' in Institutions of Higher Education
A Case Study: Notre Dame University and
The Lebanese American University
Hasham Elham S.
Department of Management and Marketing, Faculty of Business Administration & Economics
Notre Dame University, P.O. Box 72, Zouk Mikayel, Zouk Mosbeh, LEBANON
ehashem® ndu.edu.Ib

Abstract with delicate circumstances that, if taken haphazardly, may

Perceiving the accuracy of connection among affect careers^. An educational institution houses a variety of
problems, the essential prerequisites, the importance of personalities and this fact calls for extreme caution.
Moreover, problems are sensed and solutions are sought,
the .surrounding environment, experience and
evaluated, accepted or rejected for authorization and
communication, will lead to the most effective and implementation. Thus, the process should involve both
efficient decisions for a particular situation. Decisions thought and action that should culminate in a prize choice for
range from the simplest issues to the most critical... 'the the welfare of all stakeholders*.
human being. ' Educational leaders mold the minds of
the future. In addition, they are confronted with "Decision Making is the heart of executive
delicate circumstances that, if taken haphazardly, may activity"^'. It is a skill that will either make or break a leader.
affect careers. An educational environment houses such This paper will present an overview of the 'Art of Decision
a variety of personalities that calls for extreme caution. Making' and will then expose the findings and results of a
Moreover, the problem must be sensed and solutions survey that was carried out to discover the variables that
influence educational leaders as they make decisions where
sought, evaluated, accepted or rejected for
the 'human being' is the stakeholder. The issue of worker
authorization and implementation. In brief, the process participation in decision-making involves more ideologies
should involve both thought and action that should than any other issue in organizational behavior. One of the
culminate in a prize choice. Decision making is the most important characteristics of a leader is the ability to
heart of executive activity. It is a skill that will either make decisions. In educational institutions, there is a strong
make or break a manager. The objective of the survey iieed for good decision makers who realize that their choice
was to identify those variables that are significant to will affect a person's life forever. Unfortunately, although
the decision makers in institutions of higher education individuals may be qualified, they may not be capable of
in Lebanon. making sound judgments.

Keywords: Decision making, Leadership styles, Higher The processes of decision-making are patterned
education, Lebanon. primarily by what is being decided and this depends on the
type of organization. This is so because the organization is the
Introduction framework that governs how the decision can be reached.
Decisions need to be made everyday of our lives. Before decision-making games can begin, organizations
Samuel Johnson said, "Life is not too long and much of it should regulate connections among problems, determine
must not pass in idle deliberation of how it shall be spent"^ opportunities and specify solutions through administrative
The information available usually contributes to the degree of practice. Miracles can not be guaranteed. Intellectual resour-
our choice. A man always has two reasons for doing any ces that have been hidden or unused must be utilized. They
thing- a good reason and the real reason^'. A perception of the will open channels of communication among people by
accuracy of connection among problems, the essential offering common approaches and a common language for
prerequisites, the importance of educational environments, dealing with the ordinary and extraordinary situations that are
experience and communication will lead to the most effective faced in everyday interactions.
and efficient decisions for a particular situation.
The Significance of Decision Making
Decisions range from the simplest issues to the most The need for qualified decision makers is strong.
critical. What could be more crucial than 'the human being?' The consequences of ill judgment can be extremely severe.
Leaders of educational institutions contribute to the molding Thus, the questions are:
of the minds of the future. In addition, they are confronted

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Advances In Management. Y.QL 3 (2) February (2010)

1. What perceptions of participative decision making exist detailed decisions. It has been suggested'^ that organizations
in institutions of higher education? seek a 'satisfying solution' rather than an optimum one. The
2. Do level of education, experience and communication central questions are how an organization is best patterned in
skills effect the flow of authority of decision makers? terms of division of labor and of authority and which patterns
of coordination are most effective. In sum, the stress is on
3. What role do age and origin of degree play in the leader- choices individuals make for the organization rather than on
subordinate interaction of participative decision making? the factors that limit their choices or bias their decisions.

What is the image that people have of decision Leadership and Decision Making
makers? Are they brooding people on horseback who There are times when leaders are hesitant to make
suddenly rouse themselves from thought and issue an order to decisions. When there is indecision, the organization becomes
a subordinate? Are they happy-go-lucky people, a coin fragmented and employees scramble in different directions. In
poised on their thumbnail, ready to risk their action on the announcing a decision, leaders should use their role power to
toss? Are they alert gray-haired businesspeople sitting at the set the stage and gain the attention of followers, their
board of director's table with their associates, caught at the personality power to present the decision in the best light and
moment of saying 'aye' or 'nay'? Are they bespectacled their knowledge power to communicate why the decision is a
people, bent over a docket of papers with their pens hovering good one, based upon the facts'*. When leaders make a
over the line marked (X)? decision that people will react positively to, they should see
that the message is spread. On the other hand, if leaders make
All of the above scenarios have a significant wrong choices, they can only hope that they do not receive
common point. In each, the decision makers are persons, who too much publicity.
at the moment of choice are ready to plant their feet on one or
another of the routes that lead from the crossroads. Do Moreover, decision-making may be a chief factor for
leaders actually follow models each time they need to make a superior leadership, but miracles are not to be expected.
decision? Do they always stop, clear their minds and then People want clear decisions; they want quick decisions; and
proceed, step by step through a structured procedure? Most they want decisions that are beneficial for both the
do not, but those who rely heavily on some form of logical organization and themselves. If bad decisions are made,
process make better decisions. One definition^" of decision people expect their leaders to acknowledge their part and take
making is its characterization by novelty, complexity and action before anyone is hurt. "A reversal is far more
open-endedness, by the fact that the organization usually acceptable than a bad decision that is allowed to remain in
begins with little understanding of the situation it faces or the force"''.
route to its solution and only a vague idea of what that
solution might be and how it will be evaluated when it is
Research'^'^ has found that better results are attained
developed. The process involves many difficult steps and a
by involving subordinates in various stages of the decision
host of dynamic factors that should result in a final choice.
making process. Subordinates, thus, assume more
responsibility; their contribution will be more creative; they
To make a decision means that there is a set of will exhibit better attitudes toward the project and the
alternatives related to a problem. What then is a problem? It administrator. Successful leaders spend more time involving
is the discrepancy between an existing situation and a desired others than making decisions unilaterally. Leaders make
state of affairs. The decision making process^"* involves the decisions because they have been delegated the necessary
following steps: authority. They are presumed to have the right to make
1. Identification of the problem decisions pertaining to the organization and activities subject
2. Identification of decision criteria to their direction. The ability to make decisions affecting
subordinates may be limited by the subordinates themselves.
3. Allocation of weights to criteria The concept that decisions are ultimately the responsibility of
4. Development of alternatives particular leaders and that it is an individual activity is
5. Analysis of alternatives misleading. Considering the composite decision, it is
suggested" that no decision in an organization is the task of a
6. Selection of an alternative single individual. Leaders must be decision makers for the
7. Implementation of the alternative decision making process is a part of management. It is not
8. Evaluation of decision effectiveness. always easy or pleasant. There is a tendency to postpone and
to wait for further developments. But the time will come when
a choice is necessary. Effective leaders are distinguished by
Decision making itself is divided in a way that makes
the ability to reach logical decisions at the right time".
the higher in rank set the wider policy lines while the lower
echelon administrators break the policy down into more
Decision quality refers to the objective aspects of the

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