ST.

MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

RECURITMENT AND SELECTION PRACTICES THE CASE OF COMMERCIAL

BANK OF ETHIOPIA.

BY

HIWOT MERGIA WOLDIE

January, 2019

ADDIS ABABA, ETHIOPIA

 RECURITMENT AND SELECTION PRACTICES AND CHALLENGES AT
COMMERCIAL BANK OF ETHIOPIA.

BY

HIWOT MERGIA WOLDIE

A THESIS SUBMITED TO ST. MARY’S UNIVERSITY, SCHOOL OF GRADUATE

STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF MASTER OF BUSINESS ADMINSTRATION (MBA)

DECEMBER, 2018
ADDIS ABABA, ETHIOPIA
 ST MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS
RECURITMENT AND SELECTION PRACTICES AND CHALLENGES AT
COMMERCIAL BANK OF ETHIOPIA.

BY

HIWOT MERGIA WOLDIE

APROVED BY BOARD OF EXAMINERS

---------------------------------------- --------------------------------------

Dean School of Graduate Studies Signature and Date

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Advisor’s Name Signature and Date

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External Examiner Signature and Date

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Internal Examiner Signature and Date

 DECLARATION

I, the undersigned, declare that this thesis is my original work, prepared under the guidance of
Goitom Abrham (AS.Profesor). All sources of materials used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in part or in full to
any other higher learning institution for the purpose of earning any degree.

_____________________________ _______________________________

Name Signature

St. Mary‟s University, Addis Ababa Dec, 2018

 ENDORSEMENT

This thesis has been submitted to St. Mary‟s University, School of Graduates Studies for
examination with my approval as a university advisor.

_____________________________ ___________________________

Advisor Signature

St. Mary‟s University, Addis Ababa May, 2018

 T ABLE OF C ONTENTS

Acknowledgement ......................................................................................... Error! Bookmark not defined.

Contents ......................................................................................................................................................... i
List of Table .................................................................................................. iError! Bookmark not defined.
Abbreviations and Acronyms ......................................................................... Error! Bookmark not defined.
Abstract .......................................................................................................... Error! Bookmark not defined.
CHAPTER Error! Bookmark not defined.
INTRODUCTION ......................................................................................... Error! Bookmark not defined.
1.1. Background of the Study ............................................................... Error! Bookmark not defined.
1.2. Back ground of the Organization .................................................................................................. 3
1.3. Statement of the Problem............................................................... Error! Bookmark not defined.
1.4. Research Questions........................................................................ Error! Bookmark not defined.
1.5 Objectives of the Study ....................................................................... Error! Bookmark not defined.
1.5.1 General Objective ......................................................................... Error! Bookmark not defined.
1.5.2 Specific Objectives ....................................................................... Error! Bookmark not defined.
1.6 Significance of the Study ..................................................................... Error! Bookmark not defined.
1.7 Scope of the Study ......................................................................... Error! Bookmark not defined.
1.8 Limitation of the Study ................................................................................................................. 9
1.9 Definition of Terms ...................................................................................................................... 9
1.10 Organization of the Study .............................................................. Error! Bookmark not defined.
CHAPTER TWO
LITERATURE REVIEW ........................................................................................................................... 11
2.1 Overview of Employees Job satisfaction .......................................................................................... 11
2.1.1 Importance of Employees Job Satisfaction ................................................................................ 13
2.1.2 Theories of Employees job satisfaction ........................................ Error! Bookmark not defined.
2.1.3Empirical Literature on Employees Job Satisfaction ..................... Error! Bookmark not defined.
2.2 Overview of Recruitment and Selection .............................................. Error! Bookmark not defined.

i
2.2.1Definition of Recruitment and selection ........................................ Error! Bookmark not defined.
2.2.2. Importance of Recruitment and Selection .................................... Error! Bookmark not defined.
2.2.3The Goal of Recruitment and selection ....................................................................................... 20
2.2.4 Process of Internal Recruitment and selection .............................. Error! Bookmark not defined.
2.2.4.1 Promotion ............................................................................... Error! Bookmark not defined.
2.2.4.1.1 Sourcing .......................................................................... Error! Bookmark not defined.
2.2.4.1.2 Importance of Sourcing ................................................... Error! Bookmark not defined.
2.2.1.1.3 The Process of Sourcing ................................................. Error! Bookmark not defined.
2.2.1.1.4 Theoretical review on Sourcing ...................................... Error! Bookmark not defined.
2.2.1.1.5 Empirical Review on sourcing ........................................ Error! Bookmark not defined.
2.2.4.1.2 Attracting ........................................................................ Error! Bookmark not defined.
2.2.4.1.2.1 Importance of Attracting .......................................... Error! Bookmark not defined.
2.2.4.1.2.2Process of Attracting ................................................. Error! Bookmark not defined.
2.2.4.1.2.3Theoretically review on attracting ............................ Error! Bookmark not defined.
2.2.4.1.2.4 Empirically review on attracting .............................. Error! Bookmark not defined.
2.2.4.3. Screening............................................................................... Error! Bookmark not defined.
2.2.4.3.1Importance of screening ................................................... Error! Bookmark not defined.
2.2.4.3.2Theoretical review of screening ....................................... Error! Bookmark not defined.
2.2.4.3.3Empirical review of screening ......................................... Error! Bookmark not defined.
2.2.4.4 Selecting ................................................................................. Error! Bookmark not defined.
2.2.4.4.1 Importance of selecting ................................................... Error! Bookmark not defined.
2.2.4.4.2 Process of selecting ......................................................... Error! Bookmark not defined.
2.2.4.4.3 Theoretical review on selecting ...................................... Error! Bookmark not defined.
2.2.4.4.4 Empirical review on selecting ......................................... Error! Bookmark not defined.
2.2.4.2 Lateral Transfers .................................................................... Error! Bookmark not defined.
2.2.4.2.1. Importance of Lateral Transfer ...................................... Error! Bookmark not defined.
2.2.4.2.2. Process of lateral Transfer.............................................. Error! Bookmark not defined.
2.2.4.2.3. Theoretical Review on Lateral Transfer ........................ Error! Bookmark not defined.

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 2.2.4.2.4. Empirical review Lateral Transfer ................................. Error! Bookmark not defined.
2.3 Recruitment and Selection and Employees‟ Job Satisfaction .............. Error! Bookmark not defined.
2.4 The practice of Internal Recruitment and Selection in Commercial Bank of Ethiopia ............... Error!
Bookmark not defined.
2.4.1 Internal Vacancy Announcement .................................................. Error! Bookmark not defined.
2.4.2 Components of Vacancy Announcement ...................................... Error! Bookmark not defined.
2.4.3 Selection Process of CBE .......................................................................................................... 27
2.4.4 Participants for Selection ......................................................................................................... 28
2.5 Theories of Recruitment and Selection ............................................................................................. 28
2.5.1 The Equity Theory ..................................................................................................................... 28
2.5.2 Value Congruence Model ............................................................. Error! Bookmark not defined.
2.5.3The Human Capital Theory......................................................................................................... 29
2.6 Challenges of Recruitment and Selection ......................................................................................... 30
2.7 Conceptual Frame work on Internal Recruitment and Selection ...................................................... 32
CHAPTER THREE
RESEARCH METHODOLOGY ................................................................... Error! Bookmark not defined.
3.1 Description of the Study Area .............................................................. Error! Bookmark not defined.
3.2 Research Approach and Design ........................................................... Error! Bookmark not defined.
3.3 Study Population (Sample Frame) ....................................................... Error! Bookmark not defined.
3.4 Sampling Technique and Sample Size Determination ......................... Error! Bookmark not defined.
3.5 Data Types and Sources ....................................................................... Error! Bookmark not defined.
3.6 Measurement Instruments .................................................................... Error! Bookmark not defined.
3.6.1 Questionnaire ................................................................................ Error! Bookmark not defined.
3.6.2. Interview ...................................................................................... Error! Bookmark not defined.
3.6.3 Document Analysis ....................................................................... Error! Bookmark not defined.
3.7 Data Collection Procedures.................................................................. Error! Bookmark not defined.
3.8 Ethical consideration ............................................................................ Error! Bookmark not defined.
3.9 Data Analysis ....................................................................................... Error! Bookmark not defined.

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CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS ............................................... Error! Bookmark not defined.
4.1 Introduction .......................................................................................... Error! Bookmark not defined.
4.2 Job Satisfaction at CBE ................................................................. Error! Bookmark not defined.
4.3 Internal Recruitment and selection process at CBE ............................. Error! Bookmark not defined.
4.4 Summary of the Means ........................................................................ Error! Bookmark not defined.
4.5 Cross Tabulation between some Background Profiles and Job Satisfaction ...... Error! Bookmark not
defined.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .................. Error! Bookmark not defined.
5.1 Introduction .......................................................................................... Error! Bookmark not defined.
5.2 Summary of Major Findings ............................................................................................................. 57
5.3 Conclusions ....................................................................................................................................... 58
5.4 Recommendations ............................................................................... Error! Bookmark not defined.
Reference ....................................................................................................... Error! Bookmark not defined.
Appendices..................................................................................................... Error! Bookmark not defined.

iv
 DEDICATION

This work is dedicated to my parents, Mr. Mergia Woldie and Mrs. Miser
Afework for their unflinching support and good counsel. It is also dedicated to all
my siblings; Selam, Ermias and Besrat for making me their mentor. Last but not
least, it is dedicated to Muluneh Seid for coauthoring another interesting chapter of
my life.

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 ACKNOWLEDGEMENTS

Unto the Lord be the glory, great things he has done! My heartiest gratitude to God Almighty;
for the abundant grace and mercies in my life. My heartfelt appreciation to my supervisor,
Mr.Goitom Abrham (Ass.prof) for his enormous contributions to this work. I am extremely
grateful for his time, advice and painstakingly reviewing and suggesting amendments to this
work. I appreciate the help of the management and staff of the Commercial Bank of Ethiopia I
researched on. My next dose of gratitude goes to all those friends and family who carried this
work along with them in their hearts; Genet, Selamawit, Tsion for your immense contributions to
the completion of this work. To My all families, I say God richly bless you for being there for
me through thick and thin. A loving, understanding, thoughtful and helpful companion did I find
in Andargachew Worku; may the good Lord grant you all that is beautiful. Finally, to all the
authors whose work I consulted for this research, thank you in Advance.

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 LIST OF ACRONYMS AND OR ABBREVIATIONS

CBE Commercial Bank of Ethiopia

HR Human Resource

HRM Human Resource Management

SMT Senior Management Team

SPSS Statistical Package for Social Science

vii
 LIST OF TABLES

Table 1: HR data of CBE

Table 2: sample population of CBE

Table 3: Reliability of Instrument

Table 4: Demographic and Personal Information of Respondents

Table 5 Vacancy Advertisement Practice

Table 6 Recruitment and Selection Practice

Table 7 Source of Recruitment

Table 8 Availability and Implementation of Recruitment and Selection

Table 9 Overall Satisfaction of Employee with the Recruitment and Selection process

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 ABSTRACT
This research looked at the Recruitment and Selection Practices and challenges at Commercial
Bank of Ethiopia. Research over the years, has established significantly a positive correlation
between HR recruitment and selection practice. The purpose of this study, therefore was to
assess the recruitment and selection practices and challenges of Commercial Bank of Ethiopia.
To achieve the objective of this study, descriptive method was used, self-administered questions
were distributed to 100 respondents and 87(87%) of the respondents returned the questionnaires
the respondents were selected using simple random sampling technique. Secondary data were
also extracted from prospectus and other published materials of the bank. The data collected
from the questionnaire were analysed using statistical tools such as percentage, mean and
standard deviation. The result of this study illustrates, the respondents are moderately satisfied
with the recruitment and selection practices of the bank. Based on the findings of the study, the
researcher forwarded some recommendations to the manager of commercial Bank of Ethiopia to
achieve to the interests of employees by improving the recruitment and selection policies of the
bank and by creating equal opportunities to the employees and Commercial Bank of Ethiopia
should conduct Job analysis to determine job description, job specification, and job evaluation.
The researcher believed that conducting similar research works on other service giving sectors
may help identifying established trends or relationships. The result of this study may help policy
makers, practitioners and concerned ministry.
Key words: training and development, management, reward and compensation recruitment,
selection, human resource.

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 CHAPTER ONE
INTRODUCTION
The focus of this chapter is mainly to address the background of the study, background o the
organization, Statements of the Problem, Research Questions, Objectives of the study,
Significance of the study, Scope of the study, and Limitation o the study.

1.1Back ground of the study

One of the most significant developments in the field of organizations in recent times is the
increasing importance given to human resource. People are vital to organizations as they offer
perspectives, values and attributes to organizational life; and when managed effectively, these
human characters can be of considerable benefits to the organization. As revealed in Djabatey
(2012) this scenario lends credence to the increasing attention being paid to the people aspect of
organizational wealth. This is so because the development of people, their competencies, and the
process development of the total organization are the fulcrum of human resource management
(Mullins, 1999; Djabatey, 2012). Thus the impact of continued growth of the enterprise depends
on its ability to recruit and select high quality personnel at all levels. While recruitment is the
process of identifying and attracting potential candidates from within and outside an organization
to begin evaluating them for future employment, selection begins when the right caliber of
candidates are identified (Walker, 2009). This would reflect the fact that the management would
particularly shortlist able candidates who are well equipped with the requirements of the position
they are applying for, including team work. Work of Silzer. (2010) was largely concerned with
Talent management, and through their work they were successful that was a core challenge in
designing talent systems, facing the organization and among the senior management. The only
solution to resolve the concern of attaining efficient talent management was by adopting fully-
executable recruitment techniques. Regardless of a well-drawn practical plan on recruitment and
selection as well as involvement of highly qualified management team, companies following
recruitment processes may face significant obstacles in implementation. As such, theories of
HRM can give insights in the most effective approaches to recruitment even though companies

1
will have to employ there in house management skills for applying generic theories across
particular organizational contexts. Word conducted by Silzer (2010) described that the primary
objective of successful talent strategies is to create both a case as well as a blueprint for
developing the talent strategies within a dynamic and highly intensive economy wherein
acquisition, deployment and preservation of human capital-talent that matter,, shapes the
competitive advantages and success of many companies. The recruitment practice differs from
one organization to others. According to Edwin B. Flippo oct 12, 2014. Recruitment is the
process of attracting the candidates and making them to apply for the job. Recruitment is the first
step then after selection and placement comes in the employment process (Rao, 2010).
Employers aim is to choose an appropriate candidate suitable for that particular job. Recruitment
is the activity done by the HR‟s in many organizations. Selection is the second step in the in the
process of manpower planning. Finding competent workers is an important organizational
challenge (McEvoy, 1984; Deshpande & Golhar, 1994; Atkinson & Storey, 1994), with the
difficulty centering on recruiting and selecting employees with the correct qualifications to help
achieve goals (Priyanath, 2006). As further argued in Priyanath (2006), this problem is
compounded by the lack of systematic method for recruiting and selecting employees.

A systematic recruitment process according to Gamage (2014) involves indentifying vacancies,

job analysis, job description, person specification and advertising. As against informal process
for recruiting and selecting employees, a systematic selection process involves the recruiting
process, gathering information about qualified applicants, evaluating the qualification of each
applicant and making decisions about employment (Gamage, 2014).Recruiting and selecting the
wrong candidates who are not capable come with a huge negative cost which businesses cannot
afford. Thus, the overall aim of recruitment and selection within the organization is to obtain the
number and quality of employees that are required to satisfy the strategic objectives of the
organization, at minimal cost (Ofori & Aryeetey, 2011).The purpose of the study therefore to
assess the recruitment and selection practice and challenges in Commercial Bank of Ethiopia,
specifically grade three and four branches which are located at North Addis districts, this

2
research work seeks to identify employee recruitment and selection practices in Commercial
Bank of Ethiopia. The finding of the research was merely or purely based on human resource
department of commercial bank of Ethiopia. To provide the best available information and
research material on different procedures adopted by organization on the recruitment and
selection methods and analyzes their expectations and outcomes of the procedures

1.2 Background of the Organization

Commercial Bank of Ethiopia was established in August 1942 G.C. as a State Bank of Ethiopia
by proclamation with the aim of providing commercial banking service to the public. But a year
later, in addition to its commercial banking functions, the bank was entrusted with three basic
duties of a central bank i.e. controlling the issuance of currency, holding the foreign reserves of
the country and acting as fiscal agent of the government. Since its creation up to 1963 GC
Commercial Bank of Ethiopia combined these official and private functions acting at the same
time as a Central Bank of Issue and the only important deposit Bank operating in the country.
Now a days, Commercial Bank of Ethiopia carries a comprehensive banking business such as,
providing different types of loans for borrowers, different types of saving deposits, providing
local and foreign money transfer and facilitating domestic and international trade in and between
the country with the help of its above 1288 (one thousand two hundred eighty eight) branches
and around 30,000 employees all over the country and two abroad to its corporate, business,
commercial and retail customer which makes it a truly national as well as the largest and
dominant Commercial Bank in Ethiopia.

The Commercial Bank of Ethiopia is one of the largest employers in the country. Currently, it
has more than fifty two thousand employees. To make the staff fit to „service excellence‟ which
the bank upholds as its central motto, CBE has developed a comprehensive human resource
development (HRD) strategy. Of the HRD development strategy packages, “Learning and
Development” that largely relies on-the-job training is conducted extensively and on a
continuous basis at a dedicated training center of the bank.

3
There are sufficient reasons that back the above assertion. In the past decade alone, CBE has
registered impressive growth. When the implementation of the first Five-Year Corporate
Business Strategy started in 2010, the bank‟s total deposit position was barely Birr 56.1 billion.
As of June 2018, it stood at Birr 451.8 billion, which is about 64 percent of the total deposit
mobilized by the banking sector in Ethiopia. The bank‟s total asset as well grew from Birr 74.2
billion in 2010 to Birr 565.5 billion as of June 30, 2018. Moreover, its capital and reserve was
raised at different times; and by 2017/18 FY, it reached Birr 43.1 billion.

The Commercial Bank of Ethiopia is expected to play a pivotal role in financing the
development efforts of the country and national priority areas. Driven by the ambitious and ever-
growing demand of stakeholders, the Bank has been working hard to become a World-Class
Commercial Bank that meets the expectations of all stakeholders which is the vision of the bank
that is expected to be attained in the year 2025. To this end, Commercial Bank of Ethiopia has
re-engineered its business process and is being transformed from a functionally-oriented bank
into a process-based institution that strives for efficient and effective service delivery. This
paradigm shift has radically changed the bank in general and its human resources management
system in particular (Commercial Bank of Ethiopia Human Resources Manuals, 2010. The
human resources structure of the bank is led by a Vice President level, and has two main wings:
Human Resources Development and Human Resources Management. Under Human Resources
wings there are Human Resource Recruitment and Selection, Employees Relations and
Communication, and Human Resources Transactions (Commercial Bank of Ethiopia Human
Resources Manuals, 2010).In resolving issues like whether or not talent is something one can be
born with or is it something that can be acquired through development. According to Silzer et al
(2010),

1.3 Statement of the problem

As per the strategic document (2016/17-2020/21) and profile of the Bank (2014/15), currently
Commercial Bank of Ethiopia is implementing the Human Resource Development strategy. To
achieve the success of the strategy and become competent enough in the banking sector
4
domestically as well as internationally, the Bank has been exerting a lot of resources. In this
regard, the strategies of the bank (2015-2020) clearly reveal why the bank has designed its vision
as," Becoming a world Class Commercial Bank by the year 2025.”

According to Kelly (2006), for any organization to achieve its stated objectives and goals, there
is a need for management to put in place policies or strategies that will help attract the best
employees to strive towards the achievement of organizational objectives. Organization should
constantly evaluate their workforce to ensure that they have the right people with the right skills
in the right places to ensure sustained competitive advantage and when this is not the case, firms
should make-up for the shortfall by employing appropriate recruitment and selection criteria.

According to Kelly (2006), for any organization to achieve its stated objectives and goals, there
is a need for management to put in place policies or strategies that will help attract the best
employees to strive towards the achievement of organizational objectives.

To achieve the vision, the bank in collaboration with the Frankfurt School of Finance and
Management consultants had started to implement improved recruitment assessment and
selection process with the ultimate goal of enhancing continuous improvement on the
performance of the organization that align with the strategy and objectives of the organization
(Frankfurt Report , 2010).

The premise in the human capital theory, according to Armstrong (2006) is that people and their
collective skills, abilities and experience, coupled with their ability to deploy these in the
interests of the employing organization, are now recognized as making a significant contribution
to organizational success and also constituting a significant source of competitive advantage. By
the same token, under-achievement can be a result of workplace failures. Because hiring the
wrong people or failing to anticipate fluctuations in hiring needs can be costly, it is important
that conscious efforts are put into human resource planning (Biles & Holmberg, 1980; Djabatey,
2012).

5
It has also been argued that in order for the enterprise to build and sustain the competitive
advantage, proper staffing is critical thus, recruitment and selection have become imperative in
organizations because individuals need to be attracted on a timely basis, in sufficient numbers
and with appropriate qualifications. Therefore, this study sets to examine the effectiveness of
recruitment and selection process on commercial Bank. Hence, the recruitment practice on
internal recruitment and selection of the bank, this study is limited to investigate in to the overall
process of recruitment and selection practice and challenges made internally on employee‟s
recruitment and selection and the magnitude of the challenges therein, and to suggest
recommendations that will help improve the capacity to recruit high quality candidates, meeting
the entire requirement for employees for the bank in required numbers.

1.4The Research Questions

Hence, this study is primarily aimed to answer, the existing practice of recruitment and selection
and challenges of recruitment and selection implementation and more specifically to answer the
following basic research questions.

 How is the recruitment and selection process carried out at the bank?
 What are the challenges associated with the recruitment and selection practices of the bank?
 Does the bank have clearly designed recruitment and selection policy?
 To what extent are employees satisfied with the recruitment and selection practices of the
bank?

1.5 Objective of the Study

There are two objectives

1.5.1. General Objectives

The general objective of this study was to assess the recruitment and selection practice and
challenges of commercial bank of Ethiopia.

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1.5.2. Specific Objectives

The specific objectives of this study are

1. To identify the recruitment and selection process carried out at the Commercial bank of
Ethiopia.
2. To investigate major challenges associated with the recruitment and selection practices of the
bank?
3. To assess whether the bank have clearly designed recruitment and selection policies
4. To assess the satisfaction of employees with the recruitment and selection practices of the
bank?

1.6Significance of the Study

Organizations success can be measured mainly through delivery of quality service to their
beneficiaries. This can be achieved through well formulated plans and programs, recruiting the
right person for the right position, selecting employee with the appropriate document, assignment
and retention of committed and competent staffs. The assessment of recruitment and selection
practices aims to provide an integrated view of an organization‟s performance, including both
financial and non-financial indicators, and from both internal and external perspectives by
recruiting and selecting suitable advertisements. Therefore, the researcher highly anticipates that
the results of this study will have the following significance.

 It provides important information about the existing problem which triggered the
assessment of recruitment and selection practice and provides possible suggestions for
improvement.
 It will serve as a benchmark to those organizations that do not properly recruit and select
employees.

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  It helps the researcher to acquire knowledge and practical experience about recruitment
and selection practice and also for the partial fulfillment of the requirements for master‟s
degree in business administration (HRM concentration)
 Moreover, the researcher also believes that this study can potentially serve as a stepping
stone for the future research in this area.

1.7 Scope of the Study

The researcher believes that it would be appropriate to conduct the study in the large scale
However, Commercial Bank of Ethiopia is one of the largest Banks in Ethiopia having more than
1288 branches starched across the country. Commercial bank of Ethiopia has also 15 districts
across the country of which of 4 are in Addis Ababa. In addition there is various Head office
organs (Trade service, customer Account and transaction services and credit) founded only in
Addis Ababa. This is the reason that the banks studies (e.g. Employees recruitment survey report
2014) showed that the recruitment and selection of employees various schemes of the bank was
comparatively higher in Addis Ababa than outline districts. Time wise the study used document
of the Bank used secondary data that cover the period between May2012-Dec 2016 G.C. This is
because the Banks new operational system (core banking) came in to effect starting from May
2012 which changed various structure of the bank mainly the Human resource and IT section of
the bank. Besides, as source of data regarding respondents section, only CBE‟s permanent and
non-employees were part of the study. Therefore, conducting the study in large scale would be
unmanageable in terms of time, finance and research manageability. Hence, the scope of the
study is delimited to assess the practice and challenges of recruitment and selection process in
Commercial Bank of Ethiopia head office.

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1.8 Organization of the study
This thesis was organized in to five chapters. The first chapter dealt with the introductory part of
the study, which includes back ground of the study, significance of the study, statement of the
problem, objectives of the study, scope of the study, definition terms and organization of the
paper are incorporated. The second chapter provides a brief literature review regarding the
research topic. The research methodology and design were discussed in the third chapter.
Chapter four dealt with research analysis and interpretation of the finding and finally summery of
the major findings, conclusions and recommendations were discussed under in chapter five. The
survey questionnaire and the interview that was used for data collection is attached to this
document as an appendix.

1.9Limitation of the Study

Due to the bulky nature of the document striating from even the core banking system, the student
researcher had no sufficient time to see each and every employee and file of the bank which is
used as secondary sources of data that are important for the study under analysis. To solve this
constraint, therefore, major employees‟ group and files which greatly contributed to gain the
required level of data had been used.

1.10 Definition of Terms

Recruitment-The set of activities and processes used to legally obtain a sufficient number of
qualified people at the right place and time (Costello, 2006)

Selection- It is a process of selecting individuals who possess suitable qualifications to fill an

existing or future job vacancy (Yahaya et al.2009)

HR: As defined by (Bloisi 2007) is the viewpoint of the organization in the how people are
developed and nurtured to achieve organizational goal.

9
HRM practices: The ways that organizations use to shape or redirect employee behavior,
perception and attitudes towards the desired ends (Ulrich, 1997).

10
 CHAPTER TWO
LITERATURE REVIEW

This chapter deals with the assessment of literatures which relate to the topic to assess the
practice and challenges of recruitment and selection in case of commercial bank of Ethiopia.
Several literatures would be selected and relevant areas would be reviewed. This chapter
provides information about aspect of previous works which relate to this study.

2.1 Theoretical Literature Review

2.1.1 The Concept of recruitment

Recruitment is the process of generating a pool of qualified applicants for organizational job
vacancies. For Ofori and Aryeetey (2011) recruitment is the process of generating a pool of
competent individuals to apply for employment within an organization. Evidence has shown that
larger corporations are more likely than smaller organizations in implementing sophisticated
recruitment processes (Bacon &Hoque, 2005) with majority of smaller organizations relying on
referrals and advertising as their recruitment practices of choice (Barber, Wesson,
Roberso&Taylor, 1999). Several definitions of recruitment have been proposed over the last two
decades. Recruitment is defined as a process encompassing all organizational practices and
decisions that affect either the number or types of individuals that are willing to apply for or to
accept a given vacancy (Rynes, 2001). Employee recruitment involves those organizational
activities that influence the number or types of applicants who apply for a position and affect
whether a job offer is accepted (Breaugh, 1992). Emphasizing the strategic importance of the
recruitment function, Saks (2007) put forward the following definition: “Recruitment involves
actions and activities taken by an organization in order to identify and attract individuals to the
organization who have the capabilities to help the organization realize its strategic objectives.” In
particular, such activities should generate a pool of desirable candidates and enhance their
interest in and attraction to the organization. There is another definition “Recruitment is the

11
process of searching the candidates for employment and stimulating them to apply for job in the
organizations; recruitment is the activity that links the employers and the job seekers” (Flipo,
1988). According to Mondy (2010), Selection refers to the process of choosing from a group of
applicants those individuals best suited for a particular position in an organization. As well as
Mathis and Jackson (2006), define Selection as the process of selecting the most suitable
applicants. The process, according to them, is guided by predetermined selection criteria such as
job descriptions, job specifications and job profiling and commences after the recruitment
process has been completed. Work by Alan Price (2007) Price (2007), in his work Human
Resource Management (HRM) in a Business Context, formally defines recruitment and selection
as the practices of retrieving and attracting able applications for the purpose of employment. He
states that the practice of recruitment is not a simple selection process, while it needs
management decision making and broad planning in order to appoint the most appropriate
manpower. Their existing competition among business enterprises for recruiting the most
potential workers in on the pathway towards creating innovations, with management decision
making and employers attempting to hire only the best applicants who would be the best fit for
the corporate culture and ethics specific to the company (Price 2007). This would reflect the fact
that the management would particularly shortlist able candidates who are well equipped with the
requirements of the position they are applying for, including team work. Since possessing
qualities of being a team player would be essential in any management position. However, most
recruitment and selection practices have elements of subjective judgment inherent in them. But
treating job applicants in a professional and positive manner is more likely to leave them,
whether they are successful or not, with a positive view of the organization and how it has dealt
with the applicants. The recruitment and selection practices of employees also provide an
opportunity for the organization to present itself in a favorable light (National University of
Ireland, 2006).Price (2007).Deployment and preservation of human capital-talent that matter,
shapes the competitive advantages and success of many companies. According to the Burack
(1985) recruitment sources are closely linked to the organizational activities as performance of
employees, employee turnover, employee satisfaction, employee wishes and the commitment of

12
the organization (Burack, 1980).These recruitment and selection practices should be done at each
and every sector for fulfilling their organizational goals (Nartey, 2012).

2.1.2. Process of Internal Recruitment

When an organization makes the decision to fill an existing vacancy through internal
recruitment, the first stage in the process involves conducting a comprehensive job analysis. This
may already have been conducted through the human resource planning process, particularly
where recruitment is a relatively frequent occurrence. Once a job analysis has been conducted,
the organization has a clear indication of the particular requirements of the job, where that job
fits into the overall organization structure, and can then begin the process of internal recruitment
to attract suitable candidates for the particular vacancy (Smith, 1989). The process of Internal
and external Recruitment and Selection comprises different steps. These are Promotion, Transfer,
Job Posting, Job Bidding, Advertisement, E-Recruitment, Employee referrals, Labor Offices
Employment Agencies. Each of the steps is stated below sequentially.

2.1.2.1. Sources of Recruitment

Full-cycle recruiting is a term used by human resources specialists who manage the recruitment
process. Full-cycle recruiting begins with sourcing candidates, which means looking for
prospective applicants whose qualifications might be suitable for the job openings you have.
Internal sources refer to recruiting employees from within the organization. In deciding
requirement of employees, initial consideration should be given to a company's current
employees, which is concerned with internal recruitment. They include those who are already
available on the pay roll of the company. This is important source of recruitment as it provides
opportunities for better development and utilization of existing human resources in the
organization. Armstrong (2000a) proposed that first consideration should be given to internal
candidates, although some organizations with powerful equal opportunity policies (often local

13
authorities) insist that all internal candidates should apply for vacancies on the same footing as
external candidates. Aspects of recruitment under internal sources are as follows:

2.1.2.1 Promotion
Promotions refer to promoting or upgrading an employee who already exists in the payroll and
contributes to the organizational performance. It is shifting an employee to a higher position with
high responsibilities, facilities, status and pay. Usually, many companies fill higher job vacancies
by promoting employees who are considered fit for such positions. This is due to fact that it has a
great psychological impact over other employees for their motivation towards better
performance. Internal recruitment efforts very often result in promotions. Promotion signifies
reward for past performance and encourages employees in their efforts (Sherman, Bohlander and
Snell, 1998).

2.1.2.2 Transfer
Transfer is a lateral shift causing movement of individuals from one position to another.
Langseth (1995), consider transfers as being effected when the need for people in one job or
department is reduced or increased, if the work load reduced employees would want to relocate
to other areas where they can have enough tasks to perform. Under it, employees are recruited
internally through transfer from one work place to another. It refers to the process of
interchanging the job duties and responsibilities of employees from one place to another or from
one department to another without any promotion in their position or grade. It is a good source of
generating qualified employees from over-staffed departments (Keshav, 2013).

2.1.2.3 Job Posting

Job posting is an open invitation to all employees in an organization to apply for the vacant
position. It provides an equal opportunity to all employees currently working in the organization.
Today it has become a very common practice in many organizations across the world. Under

14
this, vacancy announcement is made through bulletin boards or in lists available to all
employees. Interested employees, then apply for the post being advertised. In this way, it has
become one of the cost saving techniques of recruitment (Keshav, 2013).

2.1.2.4. Job bidding

Is more effective when it is part of a career development program in which employees are made
aware of opportunities available to them within the organization. For example, HR departments
may provide new employees with literature on job progression that describes the lines of job
advancement, training requirements for each job, and skills and abilities needed as they move up
the job-progression ladder.
There are number of key advantages in using internal recruitment and these include:
 Labor Turnover: The turnover of valuable employees is reduced through internal
placement. Here, star employees within the company can be reassigned to an area within
the organization where the need is greater. Restricting the vacancy to internal candidate
can also help retain employees who might otherwise have left the organization
(Sunderland & Canwell, 2008).

 Performance: Internal recruitment might offer cost saving in the human resource
management process because of the record of performance available to recruiters. An
internal candidate has developed a record of accomplishment of performance during
employment that provides the most accurate assessment of her on the job professional
skills and experience. If the company conducts formal performance reviews, the
employee performance and goal-setting information will give valuable insight to
recruiters when assessing internal candidates (Keshav, 2013).

 Time Value: When qualified candidates exist internally, recruiting candidates internally
can decrease the time it takes to fill a position. This is particularly useful in a tight job

15
 market, when the number of external candidates applying for a given job opening can
become astronomical. In such cases, selecting among qualified internal candidates may
be efficient because it offers costs savings, such as those associated with advertising and
from using staffing resources to interview numerous external candidates (Keshav, 2013).

 Corporate Culture: Corporate culture might formally relate to the goals and objectives
of the company as articulated in its vision and mission statement. It informally includes
the business attitude, customs and etiquette. An external candidate that fulfills the
experience and skills needed for a position might not fit into the organizational culture.
Internal candidates are already familiar with the company's culture, policies and
procedures. For example, this might manifest itself in how meetings are conducted,
projects are organized or the use of consensus building in the decision-making process
(Keshav, 2013). The principal disadvantages of internal recruitment are:

o Limited Choice: Internal recruitment provides limited choice of talent available in the
organization as it avoids the arrival of fresh candidates. Internal recruitment does not tap
any candidate from outside the organization; hence, the number of potential candidates
for the post is limited to those from within the organization. There may be far better
external candidates who have more experience and better qualifications (Sunderland &
Canwell, 2008).

o Implementation of Traditional System: Internal recruitment requires the

implementation of traditional form, system, process and procedures. In addition, this
limits the scope of fresh talent in the organization (Keshav, 2013).

16
 o Position: In using internal recruitment, existing employees, whether competent or not,
will feel that they have an automatic right to be given a more senior post (Sunderland &
Canwell, 2008).

o Costly: Taking into consideration that when an employee is promoted, instantly vacancy
instantly arises. In this regard, another employee is to be recruited to fill that position,
which may be costly affair (Sunderland & Canwell, 2008).
o Limited Internal Sources: The source of supply of manpower is limited in internal
recruitment method. When an employee is promoted, his/her previous position will be
vacant and another personnel is to be recruited to fill that vacant position (Keshav,
2013).

2.1.3. External Sources of recruitment

External sources of recruitment refer to attracting applicants from outside a particular
organization to fill vacant positions. Like internal sources, they are useful to attracting competent
applicants to apply for advertised positions in various organizations. Broad varieties of methods
are available for external recruiting. Organizations should fully assess the kinds of positions they
want to fill and select the recruiting methods that are likely to reduce the best results. External
source of recruitment include advertisement, e-recruitment, employment agencies, labor office,
education and training establishment (Beardwell, 2007; Cober & Brown, 2006). Details of these
sources are discussed in this section.
2.1.3.1. Advertisement: Is the most common form of external sources of recruitment.
Organizations advertise vacant position on both electronic print and media to access a larger pool
of applicants. As cited by Nel et al. (2009:226), an advertisement has communication as its basic
underlying principle and it should be worded in a manner that triggers responses from job
seekers. Recruiters should formulate the wording of advertisements in a manner that is not

17
discriminatory. Advertisements are expensive but attract a larger pool of applicants than internal
recruitment processes. It is, however, more difficult to evaluate external applicant than those that
are already employed within the organizations. According to Armstrong (2006), the objectives of
an advertisement should be to:
Attract attention: – it must compete for the interest of potential candidates against other
employers; Create and maintain interest – it has to communicate in an attractive and interesting
way information about the job, the company, the terms and conditions of employment and the
qualifications required;
Stimulate action: – the message needs to be conveyed in a manner that will not only focus
people‟s eyes on the advertisement but also encourage them to read to the end, as well as prompt
a sufficient number of replies from good candidates (Armstrong, 2006).
2.1.3.2. E-Recruitment: -online recruitment uses web-based tools such as a firm‟s public
internet site or its own intranet to recruit staff. The processes of e-recruitment consist of
attracting, screening and tracking applicants, selecting, and offering jobs or rejecting candidates.
Cappelli (2001) has estimated it that it costs only about one-twentieth, as much to hire someone
online. The internet has become a way for employers to display company image and advantages
over competitors (Rotella, 2000).Many internet users know the difficulty, frustration and
inefficiencies of sorting through information to find applicable and useful material. However,
many companies find it difficult to integrate the Internet with their existing systems (Brake &
Lawrence 2000).

2.1.3.3 Employee Referrals: An employee referral program is a system where existing

employees recommend prospective candidates for the job offered, and in some organizations if
the suggested candidate is hired, the employee receives a cash bonus. Under this method, a
candidate is appointed on the recommendation of some currently working employees. Hence, the
HR managers of various companies depend on the present employees for reference of the
candidates for various jobs. This source reduces the cost and time required for recruitment.

18
Further, this source enhances the effectiveness of recruitment. HR managers offer various
incentives/rewards including cash incentives to the current employees for referring the best
candidates (Rajarao, 2010).

2.1.3.4. Employment Agencies: Employment agencies, sometimes referred to as labor brokers,

even though they can face criticism from labor unions in Ghana, tend to be fast and efficient in
recruiting applicants for specialized positions. For a fee collected from either the employee or the
employer, usually the employer, these agencies do some preliminary screening for the
organization and put that organization in touch with applicants. Private employment agencies
differ considerably in the level of service, costs, policies, and types of applicants they provide.
Employers can reduce the range of possible problems from these sources by giving a precise
definition of the position to be filled (Sims, 2002). As with any recruiting method, hiring from
outside an organization instead of promoting from within the company carries both advantages
and disadvantages. Some of the advantages are:
 When an organization recruits externally, it opens the organization up to a larger pool of
applicants, which increases its chance to find the right person for the job.
 Looking outside the organization also allows a company to target the key players that
may make its competition successful. Hiring a candidate with a proven record of
accomplishment for the competition allows the company to get an insider's view as to
what the competition is doing to be successful. This gives the organization a chance to
stay a step ahead of the competition.
 Bringing in fresh talent from the outside can help motivate the current employees to
produce and achieve more in hopes of obtaining the next promotional opportunity.
 Hiring an external candidate also opens up many opportunities to find experienced and
highly qualified and skilled candidates who will help a company meet its diversity
requirements.

19
  The biggest advantage of external recruitment is that the company has no limited supply
of candidates and can choose employees all over the world. According to Duggan &
Croy (2004) external recruitment in an organization can face challenges.
External recruitment requires an employee to adapt to the new environment and if the new
recruit is in management, the employees may tend to resist change that he or she tries to
implement because these changes may work against the organizational culture. This method of
recruitment can indicate that the management of the organization fails to train or motivate their
staff through promotion opportunities and career advancement. In addition, external recruitment
can lead to a high rate of labor turn over when employees realize that there is no room for career
advancement in the organization (Manyonyi, 2011).

2.1.4. The Goal of Recruitment and Selection

For recruiting to be effective, attracting a pool of candidates is important since the more the
number of the candidates the higher is the chance of getting qualified applicant for post.
However, Robbins (2006) noted such a task is not easy especially if the labor market is tight. The
source further stated that the goal of recruitment is to communicate the post in such a way that
job seekers respond. This is further strengthened by Webb (1999). He mentioned that the goal of
recruitment is to identify the pool of qualified people to secure the services of those most
qualified who in turn would help the organization to achieve its objectives. To achieve this goal,
an organization may choose internal or external recruitment methods.

2.1.4.1 The concept of selection

Selection is the process by which managers and others use specific instruments to choose from a
pool of applicants a person or persons more likely to succeed in the job(s), given management
goals and legal requirements. Recruitment and selection forms a core part of the central activities
underlying human resource management: namely, the acquisition, development and reward of

20
workers. It frequently forms an important part of the work of human resource managers or
designated specialists within work organizations. It is the human resources that give competitive
edge” and therefore should be selected carefully and developed in order to achieve employees‟
commitment (Storey, 1995).Selection is the process of choosing the appropriate candidate which
matches the candidate skills and the job requirements (Bhattacharyya, 2010). Selection process
will be lengthy for large organizations and will be wider for manufacturing organizations and it
differs from one industry to other (Venkatesh, 2008).

The selection process is to identify and employ the best-qualified and suitable individuals for
specific positions. Traditionally, it was assumed that organizations could choose amongst
applicants and that they would accept all job offers. However, attracting a large number of
applicants was not the problem, but recruiting the right applicants became the main concern
amongst employers (Branine, 2008). With the oversupply of unskilled applicants, it can be
assumed that employers would be very careful before selecting any (Nzukuma and Bussin,
2011). Employer decisions about the selection of employees are central to the operation of
organizations and to a series of outcomes that matter to individuals, organizations, and society.
Robbins (2001), point out that the objective of the selection process is to match the applicants‟
ability, knowledge, skills and experience with job requirements in a fair and legal manner.

The literature says that employers are doing the traditional method of recruiting rather than the
modern technologies (Schmidt, 1998). Chris Piotrowski and Terry Armstrong say that in their
article that around all the organizations are using traditional recruitment sources and 30% of
organizations are screening candidates honestly (Armstrong, 2006). According to SHRM
(Society for Human Resource Management) says that 15% joined in the organizations are
placing false resume (Gusdorf, 2008). Some of the employers select the candidates with
discrimination was not supposed to be done in the organizations (Fomunjong, 2009).Bratton and
Gold (2007)differentiate the two terms while establishing a clear link between them by stating
that recruitment is the process of generating a pool of capable people to apply for employment to

21
an organization. Recruitment and selection practices were important in the police department as
said by Michael D. White and Glipsy Escobar (2008) in the world and this paper shows the
importance of seven issues relating to recruitment, selection and training practices in the
organizations (M.N.Malhotra, 2014)(Terpstra.D, 1996). Mohammed NurulAbsar (2012) says the
importance of recruitment and selection in his paper by considering both public and private
manufacturing firms in Bangladesh (M.M.Absar, 2012). Some of the research professionals and
scholars say that there is a close linkage between the recruitment selection employee satisfaction
organization performance and HR practices (Gorter, 1996). In his paper Recruitment and
Selection of financial workers: An international compendium of modern trends and practices say
that the importance of using technology in the recruitment and selection process for updating the
organizational resources (Hays, 2004). ngori Henry and Temtime Z (2009) say that in their paper
the recruitment and selection practices of the organizations and make them to improve their HR
practices (R.D.Omolo, 2012). French says that the importance of certain selection and
recruitment activities in the organizations (G.R.French, 2012).Among recruitment sources
Bernardin say that internal source of recruitment is effective compared to the external source
(H.John, 2003). Decker & Cornelius say that compared to the traditional recruiting sources the
modern sources like referrals, casual applicants and direct approaches will benefit at large
(L.Barclay, 1985) (Cappelli, 2001). Selection procedure also should be in application to the
modern techniques (M.Smith, 2001). However, recruitment and selection decisions are often for
good reason taken by no specialists, by the line managers (Costello, 2006) There is, therefore, an
important sense in which it is the responsibility of all managers, and where human resource
departments exist, it may be that Human Resource (HR) managers who play more of a
supporting advisory role to those people who will supervise or in other ways work with the new
employee. According to Mullins (2010), for the Human Resource Management (HRM) function
to remain effective, there must be consistently good levels of teamwork, plus ongoing
cooperation and consultation between line managers and the HR manager. This is most definitely
the case in recruitment and selection as specialist HR managers (or even external consultants)
can be an important repository of up To date knowledge and skills, for example on the important

22
legal dimensions of this area. By using the right selection methods one can ensure that the
candidate does not only has the right skills for the job, but also possesses the right personality to
fit into the existing organizational culture. Once that “right” person has been employed, the
company has to ensure that the right incentives are put in place. However, recruitment and
selection is characterized by potential difficulties and it is necessary to keep abreast of
developments in research in the field of construction. Research from the Chartered Institute of
Personnel and Concluded that organizations should increasingly be inclusive in their
employment offering as younger generations have grown up with the notion of Flexible working,
while older people have an interest in flexible working as an alternative to Retirement his
research work seeks to identify employee recruitment and selection practices in the construction
industry of Ghana. Recruitment and selection are critical human resources functions for service
companies. Recruitment is just the initial process to be carried on Rynes (1990) suggested that
recruitment encompasses all organizational practices and decisions that affect either the number,
or types, of individuals who are willing to apply for, or to accept, a given vacancy. Recruitment
and selection also play important role in ensuring worker performance and positive
organizational outcomes. As Mullins (2010) notes: „If the HRM function is to remain effective,
there must be consistently good levels of teamwork, plus ongoing cooperation and consultation
between line managers and the HR manager. The success of a business or an organization is
directly affected to the performance of those who work for that business. There is a linkage
between HR practices, competitive strategy and performance (Jackson 1987).Underachievement
can be a result of workplace failures. Because hiring the wrong people or failing to anticipate
fluctuations in hiring needs can be costly, it is important that conscious efforts are put into
human resource planning (Biles et al, 1980).If organization does not have the right people
although it possesses the latest technology and the resources, it will be a need to put strenuous
effort to achieve the objective and results required. This is true across the business activities, for
example restaurants, hospitals, and airlines industry. As the world‟s economy globalizes and
competitors proliferate, competitive advantage is a compelling reason to do a business with an
organization has become increasingly important. Perhaps the most common approach to create

23
competitive advantage is to be less expensive than competitors. For industries that are truly
commoditized and hence actively competing for customers, cost seems to be a logical option.
However, competing on cost is a difficult game to win. In addition, competition comes not only
from small players in underdeveloped countries but from large corporations in developed
countries. Southwest Airlines, WalMart, and the retail chain Carrefour welcome a commoditized
business environment is an issue of services in today‟s fast paced economy competition. Much
more focuses has been brought to a better service and how these objectives can be achieved
through the Human Resources Management. It‟s an issue of services in today‟s fast paced
economy competition. Much more focuses has been brought to a better service and how these
objectives can be achieved through the Human Resources Management. The growth of service
organizations is important with the reason of customer interface. The importance of the
relationship between the customer and the service provider is the point that distinguishes service
organizations from manufacturing organizations is. Because of the amount of change that has
taken place in the last several decades, it is increasingly clear that the source of competitive
advantage in many industries has shifted from effective execution and reliable processes to the
ability to provide satisfactory customer service to the ability to excel in the area of customer
relationship on a grand scale. Human resources is one of the sources of competitive advantage
because they fulfill the criteria for being a source of sustainable competitive advantage (Wright,
et al. 1994).

Selection Process:-Employer decisions about the selection of employees are central to the
operation of organizations and to a series of outcomes that matter to individuals, organizations,
and society. Perhaps the most basic question in this area is why employers engage in selection
efforts at all. Managers who are involved in hiring employees need to understand the skills and
abilities that are required in a particular job and determine which candidates have those
capabilities. Interviews, reference checks, tests, applications and résumés can all help identify

24
differences among candidates. Managers can make their selection decisions with a fuller
awareness of the applicants‟ strengths and weaknesses (Tjosvold and Newman, 2003).

2.1.4.2. Screening

Screening, popularly known as short listing, is the first step after the recruitment process is
completed and applications are received. In this step, all the applications received by the due date
are screened and those that do not correspond to the requirements stipulated in the advertisement
are immediately eliminated in this step. As Cuming (1994), selection panels have to be careful
not to discriminate against applicants with potential. Their decisions should be guided by short-
listing criteria that is developed against the job requirements stipulated in the advertisements.
Furthermore, they need to ensure that enough time is set aside for short-listing. The screening
process provides information about an individual's skills, knowledge and attitudes, enabling a
potential employer to determine whether that person is suited to, and qualified for, the position.
Experience has shown that hiring an overqualified person can be as harmful as hiring an under
qualified person. The application form is the place to begin screening candidates for a job. It
provides information on the person's background and training and is the first means of
comparing the applicant with the job description. This will ensure that you don't waste time on
applicants who clearly do not meet the minimum requirements for the job. (Armstrong, 1988).

Selection tests: - Selection tests are often used as part of a selection procedure for occupations
where a large number of recruits are required, and where it is not possible to rely entirely on
examination results or information about previous experience as the basis for predicting future
performance. Tests usually form part of an assessment centre procedure. Intelligence tests are
particularly helpful in situations where intelligence is a key factor, but there is no other reliable
method of measuring it. Aptitude and attainment tests are most useful for jobs where specific and
measurable skills are required, such as typing or computer programming. Personality tests are

25
potentially of greatest value in jobs such as selling where „personality‟ is important, and where it
is not too difficult to obtain quantifiable criteria for validation purposes.

2.1.5. Reference & background check

Usually advertisements require that applicants provide the names and contact details of people
who can serve as referees to them in case their applications are considered. Reference checks are
used to verify the information that is supplied by applicant and are usually done telephonically.
Although most referees are reluctant to respond to certain questions (Mathis and Jackson, 2006),
reference checks can be used to gather as much information that will be used in deciding whether
to appoint or decline to appoint the applicants. References provide the organization with other
people‟s perceptions of the candidate‟s professional ability. The company should contact the
candidate‟s previous employers and colleagues. Questions to ask references might address the
candidate's creativity and initiative. This is mostly the reason why conditional job offers are
given in other to check the authenticity of what the candidate provided on the application form
(Snell and Bohlander, 2010). References are one of the more popular and „traditional‟ tools in
the selection process. However, the validity and reliability of references has been questioned,
particularly with respect to their unstructured and often ambivalent nature (Heraty and Morley,
1998).

2.1.5.1 Interview
Interviews are virtually used by all organizations for selection purposes. In support of this,
Newell and Tansley (2001), indicate that interviews are by far the most widely used personnel
selection procedure. With the use of interviews, managers of organizations get an opportunity to
meet the applicants directly. The interview also provides the applicants with an opportunity to
also learn more about the public institution. The purpose of the selection interview is to gather as
much information and to use such information to arrive at a selection decision (Redman &
Wilkinson, 2001:31). During the interview, panel members (interviewers) normally pose
questions to which the interviewee is expected to respond. Responses to the questions are often
captured by means of scores as determined the interviewers. The applicant that obtains the

26
highest score is recommended for appointment (Wilkinson, 2001:32). Because of interview
ambiguity, efforts must be made to ensure that all interviewees are being asked the same
questions (Gomez-Majia et al., 2004:175).

2.1.5.3 Physical Examination

Applicants are often expected to undergo test(s) to determine if they are fit to perform the job,
theyare appointed. The most common example of the employment tests that applicants often
undergo is a medical examination. Medical examination, also referred to as pre-placement
medical testing, is conducted only where the applicants are required to use physical strength to
successfully perform their duties (Mathis and Jackson, 2006).

2.1.5.4 Job Offer

The next step in selection process is job offer to those applicants who have crossed all the
previous hurdles. In other words, it is the last step in the selection process. Development of an
offer via e-mail or letter is sometimes a more formal part of this process.

2.1.5.5. Selection Practice of CBE

The selection practice of the Bank comprises of a number of steps. The steps of selection is
analyzed and put in the following manner. The steps that are used for internal candidates for
promotion are firstly, the collected vacancy is rated based on criteria (performance, education
and work experience: general and specific), secondly, the rated result is submitted to the
appropriate selection committee. Thirdly, considering the rating result the selection committee
decides either for exam or interview or both. Fourthly, Test or exam or both will be made
depending up on the decision of the committee. Fifthly, the result of the interview, or exam or
both will be compiled. Sixthly, the compiled result is submitted for the committee for decision
and lastly the committee decides (selects).CBE employs examination and interview to screen
applicants, depending on their applicability, validity and reliability to identify appropriate
personnel. If the applicants are less than ten, the procedure of the bank can use interview to
screen applicants, considering the cost-benefit of providing exam. Examination can be handled

27
in-house or outsourced. The types of examination vary as per the type of posts assumed. For
professional posts, written examinations on the required field of study are given. For technical
posts, both written and practical examinations on the required technical skill are delivered. For
semi-professional/clerical posts, written examinations that focus on aptitudes and the required
field of study are given. In addition, practical computer applications testing may be given.Once
the committee decides which candidates best qualify for the position and select them, the
candidates will be notified .The notification is made through letter, notice board and calling to
each and every applicant.

2.1.5.6. Participants for Selection

As per the procedure of the Bank, based on the responsibilities entrusted on the Corporate as
well as the District HR teams, the interview panels is formed For non-managerial roles, the
panel consists of user Organ Director/Manager, Legal, Director-HRM, Labor Union
Representative, with no voting power as a member and HR Experts/Officers represented as
Secretary.Onthe other hand, interview panel for managerial roles consists of Director HRM, User
Organ Director/VP and Chairperson- Commercial Credit participated.

2.1.5.7. Theories of Recruitment and Selection

In this section of the chapter various theories related to theories on recruitment and selection are
presented.These include value congruence model , the equity theory and the human capital
theory.

2.1.5.8. The Equity Theory

The equity theory argues that employees seek to maintain equity between the input that they
bring into a job (e.g. education, time, experience, commitment, and effort) and the outcome they
receive from it (e.g. promotion, recognition, increased pay) against the perceived inputs and
outcomes of other employees. Equity theory proposes that individuals who perceive themselves
as either under-rewarded or over rewarded will experience distress, and that this leads to efforts

28
to restore equity within the organization. Failing to find any, Messmer (2000) argues that they
may behave in ways that harm the organization such as quitting the organization or if they stay,
they may react by withholding effort in order to restrict output or lower quality, or embark on
deliberate sabotage of equipment.

2.1.5.9. The Human Capital Theory

People and their collective skills, abilities and experience, coupled with their ability to
deploy these in the interests of the employing organization, are now recognized as
making a significant contribution to organizational success and also constituting a
significant source of competitive advantage. (Armstrong and Baron, 2002).This is the
premise in the human capital theory. It underlines that people possess innate abilities,
behavior and personal energy and these elements make up the human capital they bring to
their work, (Davenport, 1999). It is indeed the knowledge, skills and abilities of
individuals that create value. That is why the focus has to be on the means of attracting,
retaining and developing the human capital. Armstrong (2009) explains that, individuals
generate, retain and use knowledge and skill (human capital) and create intellectual
capital. Their knowledge is further enhanced by the interactions between them (social
capital) and generates the institutionalized knowledge which organizations possess
(organizational capital). As per Davenport (1999) comments that: People possess innate
abilities, behaviors‟ and personal energy and these elements make up the human capital
they bring to their work. And it is they, not their employers, who own this capital and
decide when, how and where they will contribute it. In other words, they can make
choices. Work is a two-way exchange of value, not a one-way exploitation of an asset by
its owner. It is indeed the knowledge, skills and abilities of individuals that create value,
which is why the focus has to be on means of attracting, retaining, developing and
maintaining the human capital they represent, (Armstrong, 2009).

29
2.1.6. Value congruence model
Value congruence model measures the "fit" between the personal values of employee's and those
of coworkers and the company itself. Value congruence can be broken into three main
subcategories: person environment ("P-E"), person-person ("P-P"), and perceptual fit ("PF").
Person-environment congruence refers to a harmony between the personal values of the
employee and corporate culture of the company in which he or she works. Someone with a high
P-E congruence feels personally in tune with his company's stated policies and goals.
Conversely, someone with a low P-E congruence feels a sense of disharmony between his own
values and the stated policies and goals of his company. A high P-P congruence indicates a sense
of solidarity with one's coworkers in terms of shared values and goals. A low P-P congruence
indicates a sense of isolation from coworkers brought about by an absence of shared values.
Finally, strong PF suggests a strong correspondence between the values that an employee
perceives his company to have (whether or not the company actually does) and the values that
his co-workers perceive the company to have (again, whether or not it actually does). A weakPF
implies that an employee's perception of his company's values differs significantly from that of
his coworkers. Research has shown that P-E and PF congruence are important measures of
employee satisfaction, commitment, and likelihood of turnover, although P-P congruence has
little bearing on these parameters. Moreover, PF is especially important in establishing
harmonious relations between workers and managers. These measures give corporations a robust
paradigm on the basis of which to create long-term personnel plans and productivity growth
targets: in particular, P-E and PF congruence allow companies to discover dysfunctional work
relationships and clarify misperceived company policies and goals. With these tools in hand,
companies can look forward to increased employee retention and, ultimately, improved company
performance.

2.1.6.1 Challenges of Recruitment and Selection

According to Cooper and Brown (2003) recruitment and selection of employees are the most
important jobs in Human Resource management. CIPD (2009), suggest that effective recruitment

30
is central and crucial to the success of day-to-day functioning of any organization. The success of
recruitment depends upon finding the people with the right skills, qualification and expertise to
deliver organization objectives and the ability to make a positive contribution to the values and
aims of the organization (CIPD, 2009). Briggs (2007) identified some of the problem affecting
recruitment and selection Included are the increasing pressure for employment, utilization of
informal sources of recruitment and delegation of recruitment function. These problems have
resulted inadequate use of job description and standard employee requirement in the process of
recruitment. On the other hand, Kaplan and Norton (2004) indicated that a common problem in
recruitment and selection is poor human resource planning. The quality of the human resource
the firm has heavily depends on the effectiveness of this Recruitment and selections are vital
functions of human resource management for any type of business organization. These are terms
that refer to the process of attracting and choosing candidates for employment two functions
(Gamage, 2014). Recruiting and selecting the wrong candidates who are not capable come with a
huge negative cost which businesses cannot afford. Thus, the overall aim of recruitment and
selection within the organizations to obtain the number and quality of employees that is required
to satisfy the strategic objectives of the organization, at minimal cost (Ofori&Aryeetey, 2011).As
explained by Opatha (2010) recruitment are the process of finding and attracting suitably
qualified people to apply for job vacancies in the organization. It is a set of activities an
organization uses to attract job candidates who have the needed abilities and attitudes. The
general purpose of recruitment according to Gamage (2014) is to provide the organization with a
pool of potentially qualified job candidates. The quality of human resource in an organization
highly depends on the quality of applicants attracted because organization is going to select
employees from those who were attracted. In the same vein, Henry and Temtime (2009)
construed recruitment as the entry point of manpower into an organization and the path an
organization must follow from there on in order to make sure that they have attracted the right
individuals for their culture and vibes so that the overall strategic goals are achieved.

31
2.2. Empirical Review on Selection and Recruitment
Most of the organizations try to follow the policy of filling the job vacancies above the entry-
level positions through promotions and transfers. (Shah, 2007) found out making his study on
airline aviation in India that by filling vacancies in this way, an organization can capitalize on the
investment it has made in recruiting, selecting, training and developing its current employees,
who might be dissatisfied and look for jobs elsewhere if they lack promotion opportunities.
Following that a study made on the Commercial Airlines regarding the recruitment and retention
of commercial pilots in Indian Aviation Industry Companies showed that companies more likely
to promote from within than they have been in the past since employees are motivated and
perform better boosting their own job satisfaction. Internal sources include present employees,
employee referrals, former employees, and former applicants (Messmer, 2004).

Abdullah (2009) conducted studies on the major challenges to the effective recruitment and
selection practices; the case of Malaysia; The findings of this study imply that the process of
developing knowledge workers towards achieving knowledge economy status is likely to be very
challenging and to take a long time to achieve unless employers can surmount these challenges
by developing and implementing contemporarily appropriate policies and procedures for HR
practices and policies.

Djabatey Edward Nartey (2012), recruitment and selection practice of organizations, case study
of HFC bank, was assess the effectiveness of the recruitment and selection practice and
procedure .The result of their study indicates that advertising of job vacancies and employee
referrals are mostly the mode for recruiting potential employees, it was also realized that the
method used in the recruiting and selection process was very effective and more over help
improved employee performance.

Chekol (2015) conducts studies entitled practices and challenges of human resource management
in public sectors, the case of Burji Woreda. The findings revels that in Woreda there was good
practice of HRP however not based on need assessment and not implemented as seated criteria

32
and scheduled time, there was problem of recruitment and selection i.e., is not merit based , there
was insufficient training and development program that is unable to improving and developing
skill and capacity of employees, there was practice of employee performance appraisal system
however; it suffers from lack of transparency, weak follow up and lack of the linkage between
employee performance and reward system. Also managing work place diversity, recruiting
skilled manpower , attracting and retaining qualified personnel , inadequate training and
development program, creating positive work environment, change management, paying
attention to professional development, accepting challenges of modern technology change and
officials influence identified as challenge of HRM . To minimize this problems first and
foremost the human resource management program in the Woreda should get greatest emphasis
while it is foundation for development, proper HRP practice, merit based recruitment and
selection practice.

2.3. Conceptual Frame work on Recruitment and Selection

As it can be seen from the above figure there are two independent variables under recruitment
and selection which is the dependent variable. Hence, the study tries to relate the degree of
relationship between the recruitment and selection (Internal and External sources) and the source
of recruitment and selection in light of promotion, transfer, job posting and job bidding and
advertisement,E-Recruitment,Employee referrals ,labor offices. The conceptual framework
explaining the recruitment and selection practice in organizations as shown in the figure.

33
Figure 1:- conceptual framework on Recruitment and Selection

Recruitment and selection practice in the organization

Internal sources External Sources Initial Screening

- Interview
- Reference Check

- Promotion - Transfer - Advertisement, - Selection Test

- Job Posting - Job Bidding - E-Recruitment - Job offer

- Employee referrals

- Labor Offices

- Employment Agencies

Source: Self developed December, 2018

34
 CHAPTER THREE

RESEARCH METHODOLOGY

This chapter presents the study areas description, research philosophy, design and strategies,
data sources, data collection instruments, sampling design and sample size, data processing
procedures, data analysis tools and ethical considerations of the study.

3.1. Research Design and Approach

Research design is a blue print for selecting the sources and types of data relevant to the research
questions. With regard to research application, the study employed both qualitative and
quantitative ones. Now a day‟s mixed method is considered as a tool to triangulate the result of
single approach through multiple methods (Johnston, 2010). A quantitative method was selected
because it is viewed as an effective to gather large data and comprehensive issues at a specified
period of time (Ngwenya, 2010). The quantitative technique was used by considering 100 of the
population by using simple random sampling method for employees the questionnaires have
been distributed to the respondents. Qualitative technique was used by conducting review of
literatures, different books, magazines and articles with similar topics. After the required data
were collected, it was processed, and analyzed by using Statistical Package for the Social
Sciences, (SPSS).

3.2. Sources of Data

As indicated in the previous section, the study employed both qualitative and quantitative data.
Since, using both types of data are vital to offset the limitations inherent with one method with
the strength of other method (Creswell, 2003). The study used both primary and secondary data
sources to get consolidated data so as to reach on concrete findings. The primary sources of data
were collected from the respondents currently working in Commercial Bank of Ethiopia, North
Addis Ababa district namely Addisu gebya, Sheger, Mahelketema and Addis Ababa branches.

35
As part of secondary sources data were also obtained from other key documents such as
development strategies and academic journals related to the study objectives were reviewed to
enrich the findings of the study

3.3. Data Collection Instruments

To increase the breadth of information obtained from the respondents in relation to the
effectiveness of recruitment and selection in the selected CBE branches this study used two types
of data collection instruments.

Questionnaires: In this study structured questionnaire prepared in the form of Likert scale used
to collect the required data in relation to the practices and awareness of employees on
empowerment practices from the sample respondents. Such data collection instrument was
developed in order to gather large data and avoid pressure on the respondents (Creswell, 2003).

The primary data was used as the main sources of information and the data was collected from
the staff of the commercial bank by using observation in the work place and structured
questionnaires.

Interview: Is an adaptable way of finding things out. The human language is very useful in
opening of what lies behind peoples‟ action (Zikgmund, 1994). Interview allows person-to-
person discussion that can lead to increase insights in to respondents‟ thoughts, feelings and
behavior on important issues of employee empowerment. Another advantage that can be derived
from the interview is its flexibility in expressing different viewpoints on the subject under study.
Thus, key informants like branch managers will interviewed in depth using unstructured
questions during the working hours. The participants were selected through judgmental method
because of their closeness to execute the issues.

36
3.4. Sampling technique and Sample Size Determination

The study used four branches of the north Addis Ababa district office of Commercial Bank of
Ethiopia (CBE) with a total number of 100 employees. The researcher purposively selects north
Addis Ababa district head office which is found in Addis Ababa. This is because the researcher
believes that north Addis Ababa district head office having larger employee and full information
about the overall employee.

The study used four branches of commercial bank as the study areas with a total number of 100
employee‟s i.e Addisu Gebaya, Sheger, Addis Ketema and Addis Ababa branches. Therefore,
100 respondents were used as sample for this study to gather date through questionnaire. The
researcher deemed necessary to take independent sample for each branch.

Table 3. 5: Population distribution in the four branches of CBE.

Staffs

No. Campus Total

M F

1. Addisu Gebaya 8 15 23

2. Sheger 9 13 22

3. Mahel ketema 11 14 25

4 Addis Ababa 11 19 30

Total 39 61 100

Source: -CBE Human resource 2018

37
3.6. Data Collection Procedures

To gather the required data in relation to the practices, awareness of the employees towards
employee empowerment, how employee empowerment is administered preliminary visits was
made in study CBE (North Addis Ababa district) founded in, Addis Ababa. During this time,
secondary data sources pertaining to the subject under study was reviewed and discussions also
have held with the respective staff on how and when to make discussions with the respondents.
The questionnaire was administered in the selected CBE branches during working hours
(Monday to Saturday) through a pre-planned schedule. This is because the respondents ware
available only during working days in morning and afternoon. After data is gathered using
questionnaire the interviews were conducted by the researchers with key informants and
discussants.

3.7. Data analysis Method

“Data analysis is a body of methods that help to describe facts, detect patterns, develop
explanations, and test hypotheses” Levine, (1996). Yin, (1989) has also stated that, data analysis
consists of examining, categorizing, tabulating, or otherwise recombining the evidence, to
address the initial proposition of a study. For the purpose of organizing and analyzing the data
SPSS 20 was used, data gathered through questionnaires were coded and labeled, entered into
computer and analyzed in the following way.

Different statistical techniques were employed on the basis of the basic questions stated. The
data obtained through five point Likert scales questionnaire is presented and analyzed using
descriptive statistics including mean scores, frequency, and standard deviations. The data was
analyzed using descriptive statistics statics such as the mean, frequencies, and percentages.
Descriptive analysis were used to reduce the data in to a summery format by tabulation and

38
descriptive statistics s including frequencies, percentage, mean, and standard deviation were used
to discuss the data. Regarding the data collection through interview was also interpreted with the
data secured by questionnaire.

3.8. Validity and Reliability

3.8.1. Validity

The issue of validity is the most important concept that researchers are required to deal critically
with. The design of the measuring instrument must be valid so that the collected data will lead to
sound conclusions. If research is invalid (as a result of a poor instrument), then it is worthless
(Cohen, 2007:133). Validity is the extent to which the measuring instrument (e.g., a
questionnaire) we are using essentially measures the characteristic or dimension we intend to
measure (Leedy & Ormrod, 2001:98).

In this research validity was addressed as follows:

Content validity, as defined by Cohen et al. (2007) is a form of validity that refers to the extent to
which the measuring instrument (e.g., test, questionnaire or inventory) shows that it fairly and
comprehensively covers the domain or items that it purports to cover. Thus, in the context of the
present study, content validity was concerned with the degree to which the designed
questionnaire items fairly and accurately represented the main variables (dependent and
independent). The content validity was judged by the researcher as well as by his promoter. Face
validity refers to the appearance of the test items. It is where, on the surface, the measuring
instrument (test) appears, at face value, to test what it is designed to test (Balnaves & Caputi,
2001; Birmingham & Wilkinson, 2003). Like content validity, face validity cannot be checked
using statistical significance tests. It is based on subjective judgment.

39
 3.8.2. Reliability

Reliability, as defined by Cohen, et al. (2007), is the consistency, dependability and reputability
of the measuring instrument over time, and with the same respondents. It is the extent to which
the measuring instrument yields consistent and accurate results when the characteristic being
measured remains constant (Leedy & Ormrod, 2001).
The reliabilities (Cronbach alphas) were as follows. The internal consistencies for each sub scale
are: Advertisement process management .86, Application screening practice .85, Recruitment and
selection policy .82, Selection practice .81, and Recruitment and selection process .86. The
internal consistency of the survey was reported at.91, which exceeds the widely accepted
minimum standard of internal consistency of .70 (Nunnally, 1978). It was observed that the
reliability of all the variables was .840 which is greater than .70. This means the measurement
scales in this paper were reliable.
Table 1 Reliability Test
Chronbach‟s alpha No of Items
.840 30

3.9. Ethical Considerations

The researchers followed logical procedures in every stage of data collection processes.
Accordingly, the respondents were introduced about the purpose of the study then informed
consent from the respondents and responsible officials of the Bank covered by the study was
obtained to discuss with and interview them about the subject under study. Therefore, on the
basis of these ethical principles, efforts were made and confidentiality would be assured and kept
throughout the process of this research work.

40
 CHAPTER FOUR
DATA ANALYSIS AND INTERPRITATION
This chapter discusses the results and interpretations of the primary data which is gathered
through the structured questioner. The first part presents the demographic analysis, the process
through which the result obtained and the background of the respondents. As per the sampling
design 100 questionnaires were distributed. After receiving the questionnaires a thorough
verification process was done before going to further analysis to check for completeness and
consistency of the questionnaires. From the total distributed questionnaires 100 out of this
87(87%) questionnaire were found to be completed correctly and used for further analysis. The
statistical method of analysis which is applied to test the results is such as descriptive analysis
through SPSS version 20.
4.1 D EMOGRAPHIC P ROFILE OF R ESPONDENTS
Demographic profile (Gender, Age, Educational background, and Work experience and job
titles of respondents. This was analyzed to ascertain the demographic characteristics of the
respondents used for the current study.
Table 4.1. Demographic Profile of Respondents
Gender Responses Frequency Percent (%)
Male 32 36.8
Female 55 63.2
Total 87 100
Age Below 25yrs 31 35.6
26-35yrs 47 54
36-45yrs 9 10.3
Above 46yrs 0 0
Total 87 100
Educational Diploma 0 0
background BA/BSC 79 90.8

41
 MA/MSC 8 9.2
Total 87 100
Experience Less than 10years 24 27.6
10-20year 53 60.9
21-40year 10 11.5
Total 87 100
Job title
Customer service 10 11.5
manager
Customer service 67 77
officer
juniors 10 11.5
Total 87 100
Source Own survey, 2018

The demographic profile considered in this research includes gender, age, educational
qualification, current position and work experience. Position and to establish whether this will
have an impact on performance. The findings are presented here below in the table. Frequencies
and percentages were calculated.

The table above shows that 32(36.8%) of the respondents were male while 55(63.2%) of them
were female. It means out of the total employees in the organization majority of the employees
were female and the rest of the employees were male. It implies that the bank provides more job
opportunity to female employees than male employees. Regarding to the age category of the
respondents, the majority of the respondents 47(54%) were between the age of 26 and 35, less
than 25 years of the employees at the bank accounts 31(35.6%) between 36- 45 years, 9(10.3%),
and there is no employee who attained the age above 46 years. From this data one can conclude

42
that the majority of employees were in there production year in which CBE has the opportunity
to achieve its strength goals using its energetic work force.

The table shows the education qualifications of the respondent, accordingly 79(90.8%) are
degree holders and 8(9.2%) have MA degree. This shows that CBE staffed with knowledge task
force to who have capacity to perform its task effectively and efficiently. The table also
elaborates the work experiences of respondents served at CBE.Based on this majority of the
respondents worked at the organization less than 10 years accounts 24(27.6%), from 10 years up
to 20 years accounts for 53(60.9%) and from 21 up to 40 years accounts 10(11.5%). Thus, this
indicates that the bank has large number of experienced work-force who worked longer.
Regarding to the job titles of employees at CBE, the majority is Non managerial such as CSO
and juniors which accounts 67(77%) and 10(11.5%) respectively. The remain 10(11.5 %%) are
managerial.

4.2. ANALYSIS O F D ATA C O LLECTIO N FOR THE ST UDY

In this section the descriptive analysis was presented, the researcher used frequency, percentage,
mean and standard deviation to show the result obtained from the primary source. The
respondents were asked to indicate to what extent they agreed with the statements as was listed
in the questionnaire. The findings are presented using a mean scale of 1-5. For purposes of
interpretation a mean of less than 2.00 dissatisfied, from 2.10 up to 3.5 implies moderate, and
greater than 3.6 implies satisfied. A standard deviation of less than or equal1 is taken to mean no
consensus on employee respondents.

43
Table 4.2.1. Advertisement Process Management

No Statement frequency Percent Mean Std.

1. The application time given on Strongly disagree 29 33.3 1.94 .85

Disagree 39 44.8
vacancy is reasonable
Neutral 14 16.1
Agree 5 5.7
Strongly agree - -
Total 87 100
2. The duty and responsibility of Strongly disagree 6 6.9 2.27 .65
positions are clearly stated Disagree 55 63.2
Neutral 22 25.3
Agree 4 4.6
Strongly agree - -
Total 87 100
3. There is proper filling and Strongly disagree 5 5.7 3.00 .90
recording of employees application Disagree 20 23.0
format Neutral 31 35.6
Agree 31 35.6
Strongly agree - -
Total 87 100
Disagree 40 46.0
Neutral 31 35.6
Agree 4 4.6
Strongly agree - -
Total 87 100
4. Methods of vacancy Strongly disagree 5 5.7 3.16 .91
announcement makes all vacancies Disagree 40 46.0
reachable to you Neutral 11 12.6
Agree 27 31.0
Strongly agree 4 4.6
Total 87 100
Total 87 100
5. The interview question of the bank Strongly disagree 10 12.1 2.3 .80
are subjective for the interviewer Disagree 20 23.0
Neutral 8 9.6
Agree 45 51.7
Strongly agree 4 4.6
Total 87 100
44
 Aggregate Mean 2.53 0.82
Source: survey result, 2018

Based on the table 4.2.1above for item 1 the respondents gave their response to the item of The
application time given on vacancy is reasonable shows that Strongly disagree 33.3%, disagree
44.8%, Neutral 16.1%, Agree 5.7%, . Based on this result of the respondents applicants does not
get enough time for application for vacancies of the bank. For item two the duty and
responsibility of positions are clearly stated their response is strongly disagree 6.9%, disagree,
63.2%, Agree, 25.3%, strongly agree 4.6%. According to this majority of the respondents
believed that responsibilities and duties of positions are not clearly stated, and around 30% the
respondents are agreed with these duties of the bank. For item three the question of the research
which says there is proper filling and recording of employees application format the answer of
the respondents was strongly disagree 5.7%, disagree 23%, and 35.6% remain neutral, Agree
35.6% only. It means majority of the respondents believe that CBE has not properly record
employee‟s application format. For item four Methods of vacancy announcement makes all
vacancies reachable to you. Respondents answer is strongly disagree 5.7% disagree 46%, Neutral
12.6%, Agree 31% agree 4.6%. According to this answer of respondents majority of them are not
agreed with the idea and only few of them are agreed. This may be indicated the bank uses
different criteria for employee‟s vacancy advertisement process and management. For item five
of the same table the researcher asks the respondents the interview question of the bank are
subjective for the interviewer for this majority of the respondents response was agree which
accounts 51.7% and the smaller number of the respondents response was strongly agree which
accounts 4.6%, the other is disagree and neutral it indicates that the interview question of the
bank for the interviewers are subjective.

The overall assessment of advertisement process management shows that this practice is being
weekly performed, and the satisfaction of respondents also low as the mean of each items range

45
from 1.94 to 3.16 and the aggregate mean of the subscale is 2.53 it means they are moderately
satisfied by the advertisement process management of the bank.

Table 4.2.2 Application screening practice.

No Statement Frequency Percent Mean Std.

1. Qualification requirements of a job are Strongly disagree 8 9.2 2.85 .97

properly stated on vacancy advertisement Disagree 24 27.6
Neutral 28 32.2
Agree 27 31.0
Strongly agree - -
Total 87 100
2. Content of vacancy advertisement is good Strongly disagree 17 19.5 2.22 .91
and contains necessary information Disagree 44 50.6
Neutral 15 17.2
Agree 11 12.6
Strongly agree - -
Total 87 100
3. Duties and responsibilities of the job of Strongly disagree 10 11.5 2.54 .98
the job holder are properly stated on Disagree 39 44.8
vacancy advertisement Neutral 21 24.1
Agree 15 17.2
Strongly agree 2 2.3
Total 87 100
4. The selection process of the bank is good Strongly disagree 2 2.3 3.19 1.02
in general Disagree 21 24.1
Neutral 33 37.9
Agree 20 23.0
Strongly agree 11 12.6
Total 87 100
5. The bank uses the required technology for Strongly disagree 18 20.7 3.00 1.07
identifying applicants
Disagree 38 43.7
Neutral 20 23
Agree 9 10.3
Strongly agree 2 2.3
Total 87 100
6. The bank consider previous application of Strongly disagree 13 17.3 2.89 .90
applicants Disagree 13 17.3
Neutral 26 34.7
Agree 15 20.0
Strongly agree 8 10.7

46
 Total 87 100
7 The bank asses the existing employee Strongly disagree 6 6.9 2.88 .88
skill and ability Disagree 21 24.1
Neutral 37 42.5
Agree 23 26.4
Strongly agree - -
Total 87 100
Aggregate Mean 2.7 0.97

According to table 4.2.2 the respondent‟s responses to item 1 which says qualification
requirements of a job are properly stated on vacancy advertisement the answer of the
respondent‟s is strongly disagree 9.2%, disagree 27.6%, Neutral 32.2, Agree 31%. According to
this result we can understand that qualification is properly stated on the vacancy announcements
of the bank. The respondent‟s response to item 2 was the Content of vacancy advertisement is
good and contains necessary information, respondent‟s response is strongly disagree, 19.5%,
disagree 50.6%, Neutral 17.2%, and Agree 12.6%.According to this result the content of
advertisement of vacancy is not good and does not contain necessary information‟s. For item
three of duties and responsibilities of the job of the job holder are properly stated on vacancy
advertisement. The answer of the respondents also strongly disagree 11.5, disagree 44.8, Neutral
24.1%, Agree 17.2%, strongly agree 2.3%,. Based on this more than half of the respondents are
not satisfied. the other question which is forwarded to the respondents was the selection process
of the bank is good for this their response is specially majority of the respondents answer was
Neutral which accounts 37.9%, and they remain 23% Agree, strongly agree 12.6% respectively.
It shows that most of the employees of the bank are not aware of the selection process of the
bank. For item five the question forwarded for the respondents was the bank uses the required
technology for identifying applicants

Item one that is the recruit method used by the bank to attract candidates externally is good. The
answer of the respondents was strongly disagree 9.2%, disagree 14.9% Neutral 59.8% Agree
16.1%. Based on this responses of the respondent majority of them are neutral that means they
have not knowledge about the recruitment method of the bank because majority of them are

47
neutral. The other question which is provided for the respondents was the recruitment process
was satisfied, for this the answer of respondents Strongly disagree and disagree 8% and 21.8%
respectively, and Neutral 47.8%, the remain 20.7% Agree , strongly agree is 2.3%,because their
supervisors are unqualified to rate their works. The answer of respondents strongly that means
majority of them are not aware for the recruitment process which is satisfied them or not.

The overall assessment of Application screening practice of the bank shows the mean range 2.20
up to 3.19 from this practice is being moderately performed, and the satisfaction of respondents
also moderate and the aggregate mean of the subscale is 2.70 it means the respondents are
moderately satisfied by the application screening practices of the bank.

Table 4.2.3.Availability and Implementation of Recruitment and Selection

Policy

No Statement Frequenc Percent Mean Std.

y
1. The recruitment policy is implemented Strongly disagree 12 13.8 2.31 .76
effectively Disagree 40 46.0
Neutral 31 35.6
Agree 4 4.6
Strongly agree - -
Total 87 100
2. The policies and procedures on Strongly disagree 3 3.4 2.71 1.06
recruitment and selection gives equal Disagree 21 24.1
opportunities Neutral 37 42.5
Agree 26 28.7
Strongly agree 1 1.1
Total 87 100
3. Human resource department adhere to Strongly disagree 12 13.8 2.18 .67
recruitment policy and procedure Disagree 48 52.2
Neutral 26 29.9
Agree 1 1.1
Strongly agree - -
Total 87 100

48
4. You are aware of formal policies and Strongly disagree 7 8 2.78 .93
procedures Disagree 26 29.9
Neutral 35 40.2
Agree 17 19.5
Strongly agree 2 2.3
Total 87 100
5. The bank has clear policies on recruitment Strongly disagree 8 9.2 3.00 .84
practices Disagree 33 37.9
Neutral 26 29.9
Agree 14 16.1
Strongly agree 6 6.9
Total 87 100
6. The policy and procedures on Strongly disagree 19 9.2 2.06 .71
selecting give equal opportunities Disagree 43 37.9
Neutral 25 29.9
Agree - -
Strongly agree - -
Total 87 100
Aggregate Mean 2.59 0.85

Based on table 4.2.3 for item one, the question forwarded to the respondents was the recruitment
policy is implemented effectively the respondent‟s response was strongly disagree 13.8%,
disagree 46%, it is around 35.6% of the respondents are not agreed that means recruitment
policies are not effectively implemented by the bank. For item two of the same table the policies
and procedures on recruitment and selection gives equal opportunities for this the respondents try
to response as follows Strongly disagree 3.4%, disagree 24.1%, Neutral 42.5%, agree 28.7%,
stronglyagree1.1%, and Based on the answer of the respondents the policies and procedure
which are developed by the bank to select on equal opportunities o employees are not clear and
easy to interpretation. The third item the human resource department adheres to recruitment
policies and procedures say my supervisor discusses regularly my job performance with me. For
this the response of the respondents was strongly disagree 20.7%, disagree 51.7%, neutral
25.3%, agree 2.3%. From the same table item number four the question is the feedback I get help
me to get insight about the aware of the formal policies and procedures o the bank and the

49
answer of the respondents was stronglydisagree8%, disagree29.9%, neutral 40.2%, agree19.5%,
stronglyagree2%. In the same table or questions I received specific and accurate feedback from
my supervisor on my past performance, the respondents response was stonglydisagree9.2%,
disagree 37.9%, neutral 29.9%, agree 16.1%, strongly agree 6.9%. Generally from the above
responses of respondents for each item we can understand they are not satisfied with the
Availability and Implementation of Recruitment and Selection Policy of the bank.

The overall assessment of availability and implementation of recruitment and selection policy of
the bank the mean of each items of the scale range from 2.06 up to 3.00 it means this practice is
being moderately performed, and the satisfaction of respondents also moderately satisfied and
the aggregate mean of the subscale is 2.59 it means the respondents are moderately satisfied by
the implementation of the recruitment and selection policy of the bank.

4.2.4 Selection practice

No Statement frequency Percent Mean Std.

1. The bank announce the post timely Strongly disagree 5 5.7 2.98 .98
Disagree 24 27.6
for the applicants
Neutral 28 32.2
Agree 27 31.0
Strongly agree 3 3.4
Total 87 100
2. The selection is fair and free from Strongly disagree 5 5.7 2.93 .81
bias Disagree 16 18.4
Neutral 47 54
Agree 18 20.7
Strongly agree 1 1.1
Total 87 100
3. The selection test I took when I Strongly disagree 7 8.0 2.48 .87
was initially haired in the bank was Disagree 42 48.3
related to the job Neutral 31 35.6
Agree 3 3.4

50
 Strongly agree 4 4.6
Total 87 100
4. Selection test administered to fill Strongly disagree 12 13.8 2.44 .911
vacancies are job related Disagree 35 40.2
Neutral 31 35.6
Agree 7 8.0
Strongly agree 2 2.3
Total 87 100
5. The bank chooses type of test Strongly disagree 9 10.3 2.70 .94
which is appropriate for the job Disagree 28 32.2
under consideration Neutral 30 34.5
Agree 20 23.0
Strongly agree - -
Total 87 100
6. The bank gives training on Strongly disagree 18 20.7 2.09 .74
selecting Disagree 45 51.7
Neutral 22 25.3
Agree 2 2.3
Strongly agree - -
Total 87 100
Aggregate Mean 2.4 0.87

About table 4.2.4. Regarding to the selection process and practices of the bank, respondent‟s
response for each items illustrated as follows. For itemthe bank announce the post timely for the
applicants one the responses of respondents strongly disagree 5.7%, disagree 27.6%, Neutral
32.2%, Agree 31%,disagree 3.4%.That means majority of the employees of the organization is
satisfied by the the bank announce the post timely for the applicants of the commercial bank of
Ethiopia and employees. About item two, which is said the bank announce the post timely for the
applicants. The responses of the respondents was, strongly disagree 5.7%, and disagree 18.4%
and the remain Neutral 54% means they have not clear with the post announcements of the only
20.7% of the respondents Agree with such practise of the bank. The other question which is
forwarded to the respondents is CBE has the selection test I took when I was initially haired in
the bank was related to the job. The answer of the respondents was strongly disagree 8%,
disagree 48.3%, Neutral 35.6% based on this more than 3.4% of the employees are agree and the

51
remain 4.6% was strongly agree the policy of the bank. For Item four of the same table the
question which is forwarded to the respondents says selection test administered to fill vacancies
are job related. For this of the respondents answer was13.8% are strongly disagree, and the other
40.2% disagree and 35.6%neutral, 3.4%agree and 4.6% strongly agree. Question number five of
the table say the bank chooses type of test which is appropriate for the job under consideration.
For this the responses of the respondents was strongly disagree 13.8%, disagree40.2%, Neutral
35.6 %, Agree 8% and Strongly agree only 2.3 %. Based on these responses of the respondents
the bank is not preparing appropriate test for the job. The sixth question from the same table
saysthe bank gives training on selecting. For this the responses of the respondents was strongly
disagree 21.8%, disagree 49.4%, Neutral 28.7%.Generally from the above responses of
respondents for each item we can understand they are not satisfied with the selection practices of
the bank.

The overall selection practices of the bank the mean of each items of the scale range from 2.09
up to 2.98 it means this practice is being moderately performed, and the satisfaction of
respondents also moderately satisfied and the aggregate mean of the subscale is 2.4 it means the
respondents are moderately satisfied by the implementation of the selection practices of CBE.

4.2.5. The satisfaction of employees with the recruitment and selection process

No Statement frequency Percent Mean Std.

1. I was comfortable with the Strongly disagree 7 8.0 2.81 .90

interviewers allover approach Disagree 40 46.0
Neutral 22 25.3
Agree 16 18.4
Strongly agree 2 2.3
Total 87 100
2. I was satisfied with the method Strongly disagree 7 8.0 2.93 .81
that the bank uses to recruit Disagree 39 44.8
internally is good Neutral 16 18.4

52
 Agree 22 25.3
Strongly agree 3 3.4
Total 87 100
3. I was truly satisfied with Strongly disagree 41 47.1 2.87 .91
recruitment process Disagree 19 21.8
Neutral 7 8
Agree 18 20.7
Strongly agree 2 2.3
Total 87 100
4. The selection test I took when I Strongly disagree 7 8.0 2.48 .87
was initially haired in the bank was Disagree 42 48.3
related to the job Neutral 31 35.6
Agree 3 3.4
Strongly agree 4 4.6
Total 87 100
5. The recruit method used by the
Strongly disagree 18 20.7 2.82 .85
bank to attract candidates Disagree
45 51.7
externally is good Neutral 22 25.3
Agree 2 2.3
Strongly agree - -
Total 87 100
Aggregate Mean 2.78 0.86

Based on Table 4.2.5. The researcher able to assess the satisfaction of employees with the
recruitment and selection process and practices of CBE. For this the researcher forwarded five
questions to the respondents and they try to give their own answers and analyzed as follows. For
item one, I was comfortable with the interviewers allover approach. For this 8.0% of the
respondents say strongly disagree, 46.0 % disagree, 25.3% neutral, 18.4% agree and 2.3%
strongly agree. For this majority of the respondents are not comfortable with the interviewer‟s
allover approach. The second question which is forwarded to the interviewers was I was
satisfied with the method that the bank uses to recruit internally is good. For this the responses of
the respondents was 8% of the respondents strongly disagree, 44.8% disagree, 18.4% neutral,
25.3 agree and only 3.4% of the respondents response was strongly disagree. Based on these

53
responses of the respondents majority of the employees of commercial bank of Ethiopia was not
satisfied by the internal recruitment methods of the bank. The third item which is forwarded to
the respondents was I was truly satisfied with recruitment process, large numbers of the
respondents are strongly dissatisfied because it accounts 47.1% and disagree 21.8%, that means
around 68.9% of the employees are not satisfied with the recruitment process of the bank. The
forth item says, the selection test I took when I was initially haired in the bank was related to the
job. Respondents response was 8% strongly disagree, 48.3% disagree, 35.6 % neutral, 3.4%
agree and 4.6% strongly agree. From the above data we understand is that respondents believed
most of the test prepared by the bank are not related with the job that they applied. Item five of
the same table says the recruit method used by the bank to attract candidates externally is good,
the responses of the respondents was strongly disagree 20.7%, disagree 51.7%, neutral 25.3%and
agree2.3%. Based on this he recruitment method of the bank has a problem to attract external
applicants; this is because majority of the respondents responses disagree.

The overall satisfaction of employees with recruitment and selection process of the bank the
mean of each items of the scale range from 2.48 up to 2.93 it means this practice is being
moderately performed, and the satisfaction of respondents also moderately satisfied and the
aggregate mean of the subscale is 2.78 it means the respondents are moderately satisfied by the
recruitment and selection process of the bank.

The aggregate mean of the five sub scales was advertisement process management is 2.53,
application screening practice is 2.70, availability and implementation of recruitment and
selection policy is 2.59, selection practice is 2.40 and the satisfaction of employees with
recruitment and selection process is 2.78. The aggregate mean of the overall recruitment and
selection practices and challenges of CBE per is 2.60. This indicates that this practice is
moderately managed and CBE has making and implement best practices and policies to improve
the recruitment and selection process of the bank.

4.3. Qualitative Data Analysis

54
The researcher wanted to find out possible barriers hindering the effectiveness and efficiency of
the recruitment and selection of construction employees. Data collected from respondents were
ranked according to their response. Data is collected from Managers and delegated HR focal
persons.

1. 1. What are the major challenges of Recruitment and Selection process in

Commercial Bank of Ethiopia?
The major challenge identified to be frequently facing recruitment and selection practices in the
CBE are poor human resource planning appeared first. In this report, it was added that
ineffective planning of your human resource is as disastrous as a collapsing firm because the
workers form the core of the business and the business represent the workers. Kaplan and Norton
(2004), were also of the opinion that a common problem in recruitment and selection is poor HR
planning.

The recruitment process consists of a job analysis and job description. In recruiting staff, the
company must perform a job analysis to identify the requirements of the job. A job analysis is
the systematic process of describing and recording information about job behaviors, activities,
and worker specifications (Jackson et al., 2009). The job analysis is intended to bring out what
the company needs and the required skills or abilities needed to carry out the job. It literally
analyzes the job position available to be filled and gives the organization information about the
particular position, the task or work involved. The analysis goes on to identify or recommend the
necessary and required competence or knowledge in performing the job. A job analysis will help
the company in recruiting the right caliber of people. Recruited employees will know what their
required responsibilities are and the skills and expertise they need to accomplish tasks.

The 3rd challenge to employee recruitment and selection is Competency level on the part of
employees. The aim of this factor is to buttress the assertion of Richardson's (2012), which states
that acquiring high quality staff is critical to an organizations success. This is one of the biggest
challenges confronting most management when it comes to worker recruitment and selection.

55
The competence levels on the part most candidates or job applicants are usually not to
expectation, low or do not meet criteria. Cost of recruitment and selection of employees,
Employer employee relationship, and Poor working condition of workers.

.
2. What are the challenges with the HRM?
 Reporting chain of commands; in some cases, doesn‟t follow clear chains especially
with the lower levels,
 Informal are entertained and used formally to impact the decision.
 The challenge with evaluation and mentoring is that staff may be overly depending on
their line manager‟s support and sometimes will be lacking self-driven solutions. This
may cause bypassing of line of authority.
3. What will be the best way to promote and satisfy staff’s?
 Session such as annual review meetings and orientations helps to create trust
building, to share the organizations vision and mission, objectives, to talk about
successes and challenges and updates of CBE.
 The work assignments that CBE provides are of challenging in their nature and this
for some members of the staff has created a room for growth and commitment. By
empowering and providing delegation to implement the job which increases their
accountability. In addition, line manager‟s time is put aside to coach their staff.

56
 CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

The purpose of this research is the recruitment and selection practices and challenges. To achieve
this goal relevant literature was reviewed in chapter two; methodology was discussed in chapter
three, and data analysis in chapter four. In this chapter the summary of major findings,
conclusion and recommendations are presented and discussed.

5.1 Summary of Major Findings

The present study analyzes the recruitment and selection practices and challenges in commercial
bank of Ethiopia. The study employed both descriptive and inferential analysis. The major
findings of the study are summarized as follows.
 The respondent is dominated by female employees that constitute (63.2%) of the
respondents. With regard to age group, 54.0% of the respondents are between the ages of
26-35. The survey result shows that 90.2% of the respondents are at least first degree
holders. The study also shows that 60.9% of the respondents have 10 up to 20 years of
service in CBE. In CBE, majority of the employees, (77%) of the respondents are
customer service officers. The overall perception of employees on the internal and
external recruitment and selection and challenges of the bank i.e. promotion, transfer, job
posting, job bidding, and advertisement, e-recruitment, employee referrals is at moderate
level. There is moderate level of perception of employees on advertisement practice of
CBE i.e. M=2.53, the mean of application screening practice is 2, 70 that is moderate.
 The overall perception of employees on the availability and implementation of
recruitment and selection policy was 2.9, it means moderate. The selecting practice of the
bank is then evaluated to be moderate with a mean of M=2.40.finally the allover average
mean of the selecting and recruitment practices of CBE was 2.62 it means moderate.

57
  Generally, employees‟ satisfactions on the recruitment and selection practice and
challenges of CBE in that based on the mean result is 2.60 that is at the moderate or
average level of employees‟ satisfaction resulted from their view/perception of the
recruitment and selection practice at the bank.

5.2 Conclusion
The focus of recruitment and selection is to match the capabilities of prospective candidates
against the demands and rewards inherent in a given job. For this reason, top performing
companies devote considerable resources and energy to creating high quality selection systems.
Recruitment and selection process are important practices for human resource management, and
are crucial in affecting organizational success. The following conclusions have finally been
drawn after carefully processing the information from the various sources that were identified in
the methodology part. Following the analysis and findings, the subsequent conclusions drawn
based on the research questions of the study include:
 How is the recruitment and selection process carried out at the bank?
 There is Lack of awareness at departmental level about the recruitment and selection
procedures. This would negatively affect the recruitment and selection process of
potential candidates for the position. There is no equal opportunity for all potential
employees during recruitment and selection. Which can affect the institution to lose
competitive candidates and also it affects the image of the bank.
 What are the challenges associated with recruitment and selection practices of the bank?
 The major challenge identified to be frequently facing recruitment and selection practices
in the CBE are poor human resource planning.
 Job analysis and job description. In recruiting staff, the company must perform a job
analysis to identify the requirements of the job. The job analysis is intended to bring out
what the company needs and the required skills or abilities needed to carry out the job.
The analysis goes on to identify or recommend the necessary and required competence or
knowledge in performing the job. A job analysis will help the company in recruiting the

58
 right caliber of people. Recruited employees will know what their required
responsibilities are and the skills and expertise they need to accomplish tasks.
 Competency level on the part of employees. Which states that acquiring high quality staff
is critical to an organizations success? This is one of the biggest challenges confronting
most management when it comes to worker recruitment and selection. The competence
levels on the part most candidates or job applicants are usually not to expectation, low or
do not meet criteria. Cost of recruitment and selection of employees, Employer employee
relationship, and Poor working condition of workers.
 Does the bank have clearly designed recruitment and selection policy?
 By comparing the recruitment and selection practices of the bank with recruitment
and selection policy evaluation checklist it is not in line with its recruitment and
selection policy, which in turn are not in line with the best practices discussed in the
literature. The recruitment and selection policy of the bank states clearly internal
recruitment should take preference over external recruitment.
 The duties and responsibilities of the job holder are not properly stated on vacancy
advertisement which makes difficult to know the responsible body.
 To what extent are employees satisfied with the recruitment and selection practices of the
bank?
 The selection criteria used by the bank is not relevant to select competent and
qualified personnel. This can affect the institution selection process.
 There is low satisfaction of employees with the recruitment and selection practices
of the bank, The study indicates that majority of employees did not get training and/or
orientation on recruitment and selection policies and procedures of the bank which
affect the recruitment and selection, process fairness and transparency.
 The other reason is no proper planning for the recruitment and selection process.
This clearly indicates that it is impossible to measure the validity of the selection
process without proper planning.

59
5.3. Recommendation
In view of the above conclusions drawn from the findings, the following recommendations
were made to contribute to the practices of recruiting and selecting of commercial bank of
Ethiopia. The integral benefits of the identified recruitment and selection practices cannot be
overlooked; nevertheless, the following recommendations must be well noted.
 The bank is recommended to increase the awareness of employees at department head
level and Human Resource heads about the recruitment and selection process and
procedures through on-job and off-job training since the Institutes survival and existence
depends on the human resources capacity.
 The recruitment and selection policy of the CBE does not explicitly state the scoring
methods or techniques used in the employee selection decision. The institution policy
should have to include the scoring methods used in the selection process.
 The CBE recruitment and selection policy stated that employment test is conducted for each
candidate. However, it doesn‟t mention in detail about which test for what kind of position
and when it should be used.
 CBE should update and amend its recruitment and selection procedures along with the job
description as frequently as possible to fine-tune with the changing situations. The bank
should have to clearly define the recruitments and candidate specifications in the recruitment
process.
 Before any recruitment and selection method will be adopted, employers should conduct job
analysis to determine job description, job specification, and job evaluation. Through proper
job analysis will be able to fix up the specific duties and responsibilities of every employee.
Job analysis will help in determining skills and knowledge to be possessed by the employees
to hold various positions.

60
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APPENDIX

St. Mary’s University

School of Post Graduate Study

A Questionnaire developed for the study of

“Questioner on an assessment of recruitment and selection practices and

challenges at Commercial Bank of Ethiopia”

Dear Respondents:

I am a post graduate (MA degree) student Sent Marry university school of Graduate in the field of
Human Resource Management. In partial fulfillment of the requirement; I am doing a research on
recruitment and selection practice and challenges at Commercial Bank of Ethiopia.

In this endeavor your co-operation is sought for the compilation of this questionnaire which is part of
the survey. You willingness to complete the questioner will be much appreciated as the information
thus obtained will assist the researcher to evaluate the present state of recruitment and selection
practice and challenges. The questioner has been prepared in such a way that it will require the
minimum of time to complete and responses to the various questions will be decisive for the eventual
outcome of the research.
Thank you in advance for your participation and time.

The researcher

Instruction for completion

Please go through all the questions before attempting to complete the questionnaire.
Please remember that you simply answer the questions based on your current knowledge and/or
experience.
 Please complete the questioner without discussing it with other staff
 Put a tick (√) mark on the appropriate response to each of the question.
 All information will be treated as strictly confidential.
 Information will be used in aggregated form
Thank you for your Co-Operation!

66
Part One: personal Information
Instructions:
Please use this “√” mark for each question to indicate your response
1.1 Gender: Male
Female
1.2 Age: 25 or below
26-35
36-45
>46

1.3 Educational Background:

Diploma
BA/BSC Degree
MA/MSC
PHD

1.4 How long you have been serving in CBE?

Less than 10 years
10 - 20 years
20 - 40 years
>40 years
1.5 Please specify your current Job Title _________________________

Part Two: Opinion Survey

Please indicate the extent to which you agree or disagree with each of the following statements.
If you neither Agree nor Disagree, select the uncertain option.

67
 Recruitment and Selection Process

Advertisement process management Strongly Disagre Neutral Agre Strongly

Disagre e(2) (3) e(4) Agree(5
e(1) )
1 The application time given on vacancy is
reasonable
2 The duty and responsibility of positions are
clearly stated
3 There is proper filling and recording of employees
application format
4 Methods of vacancy announcement makes all
vacancies reachable to you
5 The interview question of the bank are
subjective for the interviewer

Availability and Implementation of Recruitment Strongly Disagre Neutral Agre Strongly

Disagre e(2) (3) e(4) Agree(5
and Selection Policy
e(1) )

1 The recruitment policy is implemented effectively

2 The policies and procedures on recruitment and selection

gives equal opportunities

3 Human resource department adhere to recruitment policy

and procedure
4 You are aware of formal policies and procedures

5 The bank has clear policies on recruitment practices

6 The policy and procedures on selecting give equal

opportunities
Application screening practice. Strongly Disagre Neutral Agre Strongly
Disagre e(2) (3) e(4) Agree(5
e(1) )
1 Qualification requirements of a job are properly
stated on vacancy advertisement

68
 2 Content of vacancy advertisement is good and
contains necessary information
3 Duties and responsibilities of the job of the job
holder are properly stated on vacancy
advertisement
4 Selection test administered to fill vacancies are
job related
5 The bank uses the required technology for
identifying applicants
6 The bank consider previous application of
applicants
7 The bank asses the existing employee skill and
ability

Selection practice Strongly Strongly

No. Disagre Disagre Neutral Agre Agree(5
e(1) e(2) (3) e(4) )
1 The bank announce the post timely for the
applicants

2 The selection is fair and free from bias

3 Selection test administered to fill vacancies are
job related
4 The bank chooses type of test which is
appropriate for the job under consideration
5 The bank gives training on selecting

Overall satisfaction o employees with Strongly Strongly

No. Disagre Disagre Neutral Agre Agree(5
the recruitment and selection process e(1) e(2) (3) e(4) )
1 I was comfortable with the interviewers allover
approach
2 I was satisfied with the method that the bank
uses to recruit internally is good
3 I was truly satisfied with recruitment process

69
 Selection practice Strongly Strongly
No. Disagre Disagre Neutral Agre Agree(5
e(1) e(2) (3) e(4) )
4 The selection test I took when I was initially
haired in the bank was related to the job
5 The recruit method used by the bank to attract
candidates externally is good
6 I was satisfied with the selection process of the
bank

Any suggestion…………………………………………………………………………………………

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 INTERVIEW QUETIONS

Dear Ato/W/t, _______________

I would like to thank you in advance for dedicating your valuable humanitarian time to provide
me with a response to my interview.

1. What are the sources and practices of recruiting and selecting in Commercial Bank of

Ethiopia? How is the specification made for selecting the types of recruiting sources?

Why?

2. What are the methods of recruiting? How are they used?

3. What are the steps of selection process used by Commercial Bank of Ethiopia?

4. Who are the participants of selection committee (if any) there is committee? Specification

of the selection committee‟s composition?

5. What are the selection methods the bank uses? What do you say about its fairness,

transparency and consistency?

6. Is there clear HRM Policy that guides the Internal Recruitment and Selection practice?

How often it is revised?

7. What are the strengths and major challenges of Recruitment and Selection process in

Commercial Bank of Ethiopia?

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Thank you for the valued time

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