An overview of the recruitment process of the Banking sector
An overview of the recruitment process of the Banking sector
Human Resources Management (HRM) has a great significance by enhancing the dignity of labour in numerous means by giving them the suitable employment, in a way to provide social and psychological satisfaction to maintain their work-life balanceArmstrong and Taylor (2014). Among the functions of the HR process, “recruitment” and “selection” plays a vital role by facilitating the management to search for the best suited individual to the “job”. In that context, an effective approach to recruitment and selection might lead the organization to maximum wealth through the competitive advantages cost efficient (Kleiman, 2005) and easy on global competitiveness.Further scholars stated attracting highly qualified candidates and ensure their individual-job fit is the main goal of the both functions (Fisher et al., 2004; Kleiman, 2005; Mathis & Jackson, 2005).
As explained by scholars, (Khan ,2008; Armstrong and Taylor ,2014 ) , recruitment refers to informing the labor market that there are new job openings and these would be filled up in various ways. Thus , the primary determination of the recruiting is to identifying and attracting potential employees to a vacant job (Noe, et al., 2006) and , selection is the process of sorting which applicants would be let in to the organizations (Noe et al, 2006). Moreover, the goal of the selection is to choose the right candidate(s) who might meet the desires of the job and the organization with compared to other candidates (Khan ,2008).
Present global labour market is rather competitive as well complex, and qualified HR would be a must to survive. Therefore every organization is keen with recruitment and selection because if there are any unsuccessful recruitment and selection was occurred, that might adversely affect to the organization.
In practical scenario, Development Finance Bank Sri Lanka follows the organizational based for the recruiting and selection functions. HR Department of the bank is responsible for (a) selecting the source of recruitment (b) preparing advertisement and (c) best suited method to advertise and related work.
Recruitment Sources have mentioned; large number of organizations tend to combine both internal and external sources of recruitment, whereas rapidly changing competitive environmental conditions, might keep emphasis on external sources in addition to internal sources of recruitment (Mathis & Jackson, 2005).
In that context,
Internal Sources of Recruitment of the Development Finance Bank Sri Lanka: at present the bank adopts promotion, transfer and job postings as internal recruitment methods.
Development Finance Bank is practicing a well-defined guidelines for promotions, and if there is any vacancy, then any employ who fulfill all the mentioned qualifications of the senior level post can apply. Any employee could easily download the application forms for promotions, as bank provide an unbiased platform for any.
According to Khan (2008), transfer is a lateral movement within the same grade/or rank, from one job to another, without any change in remuneration, duties and responsibilities. Development Finance Bank practice this method by transferring the employees from one department/division to another without changing status, remuneration or responsibilities, mainly for 5 years period. Bank adopting this method in a way to; (a) motivate the employees, (b) employee interest/ variety seeking of employees (c) secure its business operation by removing dishonest activity in a particular department/divisions (d) balance between newcomers and experienced staff
As mentioned by (Mathis & Jackson, 2005), Job posting is a system of providing notices of job openings and existing employees respond to the posts by applying (Mathis & Jackson, 2005). Herein, the Bank practice the method of posting the job internally and this internal method has shown vast advantages. In that situation, when a new job position is opened, HR department informs the other departments and branches through job posting
External Sources of Recruitment of the Development Finance Bank Sri Lanka: at present, the bank is adopting external sources of recruitment frequently.
Development Finance Bank publishes their advertisements oftenin national daily newspapers, such as, Observer, Daily News, and LankaDeepa
In present technological era, websites play a vital role by not only providing information on the organization but also enhancing the image of the organization. Therefore most of the Organizations tend to post the vacancies as a web-notice,whereas the applicants can email the CV. Bank also highly practicing the method, and job seekers are encouraged to e-mail their CV/ resume or complete online applications on the website.
Therefore both of the methods are adopting by the Development Finance Bank of Sri Lanka to recruit the most suited people to the Bank.
References
Armstrong, M. & Taylor, S ( 2014 ) Human Resource Management Practice, 13th Edition, Kogan Page Limited publishers
Fisher, C. D., Schoenfeldt, L. F. & Shaw, J. B. (2004) Human Resources Management, New Delhi: Biztantra
Khan, A. A. (2008) Human Resource Management and Industrial Relations. 2nd ed. Dhaka: Abir Publications
Kleiman, L. S. (2005) Human Resources Management: A Managerial Tool for Competitive Advantage. 2nd ed. New Delhi: Biztantra.
Mathis, R. L. and Jackson, J. H. (2005) Human Resources Management. 3rd ed. Bangalore: Thompson.
Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2006) Human Resource Management, NY: McGrawHill Irwin
Tabassum A. (2011) The Process of Recruitment and Selection in a Developing Country: Case Study of a Bank in Bangladesh ,ABAC Journal, 31 (1), pp.55-67
Ume-Amen (2010) has done research on the factors which benefits organizations in outsourcing
ReplyDeletetheir recruitment and selection process. Based on the literature survey the factors were identified. These factors were cost savings; improve quality, time pressure, lack of internal staff, increased capacity, manpower availability, easy replacements, and pool of applicants and competence of applicants.
Thanks. Kleiman ( 2005 ) further described An effective approach to recruitment and selection can help an organization to maximize the competitive advantages by choosing the best pool of candidates quickly and cost-efficiently.
DeleteWhile internal transfers do save time on the interview and on-boarding process, the transferring from one branch to another without a hike in remuneration can limit new ideas and diversity. An internal transfer can have many advantages over quitting your job and leaving the company. A work transfer is a way to help an employee gain wide and broader experience within the business. (Hubler, D., 2019)
ReplyDeleteHubler, D., 2019. Advantages Of An Internal Transfer Versus Quitting Your Job. [online] Online Career Tips. Available at: [Accessed 3 December 2020].
Sonali, agreed . Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2006) disussed the internal recruitment and it has defined as the searching prospective employees through the existing workforce by providing transfers from different departments, offering promotions, through the referral of supervisors, mainly .
DeleteHi Tusitha, Recruitment and selection of a productive workforce can be considered as a hub for business success and a key function in human resource management. The strategic importance of recruitment is often reported in the academic literature (Boxall and Purcell, 2003).
ReplyDeleteYes Ranga. As I mentioned earlier the Human Resource is the most important factor of an organization more scholars have done many researches to find out effective work force by effective recruitment and selection process.Jovanovich (2004) has pointed out recruitment as a process of attracting a pool of high-quality applicants to select the best among them.
DeleteA new global trend started when Jeff Taylor launched Monster.com with jus 20 clients and 200 job opportunities back in 1994. Today more than three-fourth of the fortune 500 companies use online recruiting (Okolie, UC & Irabor, IE, 2017). Improve corporate image and profile; Reduce recruitment costs; Reduce administrative burden; Employ better tools for the recruitment team are said to be the primary drivers to pursue e-recruitment (Okolie, UC & Irabor, IE, 2017). This is furthered today by the arrival of game changing recruitment techniques such as AI, Virtual reality and ATS into the context ( Rajenia, S 2018). AI for an instance uses tools such as Chatbots, Sentiment Analysis and Talent rediscovery to streamline the process ( Rajenia, S 2018). Therefore, it is imperative that both organizations and candidates be engaged in an understanding of the pros and cons of latest e-recruiting methods in order to save the human touch.
ReplyDeleteThanks. Due to the technology advancements and internet among the globe, the HR would reach out for large number of recruitments via novel, innovative and improved methods. Some global firms try out for online recruitments as mentioned by Balaji,(2019).
DeleteIn addition to the points outlined in your introduction, I would like to add that Armstrong (2009) addressed the value of a strong human resource planning strategy for a company - this is the method of proactively estimating the requirements for man-power. In order to achieve the best outcomes for the organization, the recruiting and selection activities of a company should be coordinated with the human resource planning process.
ReplyDeleteThanks and Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. have proved the statement you given by defining the recruitment is a process of searching potential applicants for a suitable post/vacancy or an anticipating vacancy and encourages them to apply for the said post/vacancy as well, selecting a suitable person for a suitable post will ensure the goal of the organization.
DeleteAdding to benefits of internal recruitment, it are cost effective and fast. Having candidates who are already familiar with the business and knowing about the candidate’s strengths and weaknesses are some of advantages of internal recruitment.
ReplyDeleteBut Isuru there may be some disadvantages of the internal recruitment such bias of the supervisors will impact for the selection among the internal applicants, the internal applicants may have the more power to negotiation that external employees and also the not selected internal applicant can damage to the reputation to the organization.
DeleteLabor or work force is the key factor of an organization before it creates, operate and maintain in order to achieve the purpose for the organization was setup (Harky 2018). Recruitment defines the process of bewitch individuals on correct time, in required numbers, and with adequate qualifications, and embolden them to find the best place with an organization (Mondy & Noe, 2008). Selection describes the aspect of choosing from a group of applicants the individual best befit for a role or a position and organization (Mondy & Noe, 2008).
ReplyDeleteThanks. Istvan,J ( 2010 ) defined the selection as the process of picking individuals who have relevant qualifications to fill the vacant post in an organization .
DeleteFor better recruitment and selection results, organizations should be open minded and receptive towards candidate’s creativity and encourage prospective to ask questions and express doubts(Wanous, 2000)
ReplyDeleteYes.Kelum. Fisher, C. D., Schoenfeldt, L. F. & Shaw, J. B. (2004) have further described as the Selection is much more than just choosing the best candidate, is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires . Therefore this might act as a win-win situation for both parties.
DeleteEmployee Referrals, the recommendation of current good employees may provide excellent prospects while the current employees will vacillate to recommend average ability applicants(Basic of Recruitment in Human Resource, 2010).And this is considered to be a good method for banking sector employment.
ReplyDeleteYes Kelum. This can be classified as an internal recruitment method .internal recruitment is searching prospective employees through the existing workforce by providing transfers from different departments, offering promotions, through the referral of supervisors, mainly according to Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M ( 2006 )
DeleteAccording to Robinson (2017), hiring the wrong employees could cost the company, by estimation, up to ten times of the typical employee’s compensation. It could disrupt the company’s culture and morale through the presence of negative influences. Staff turnover would also cost the management their valuable time because now they had to focus on recruiting new employees. Not to mention, the waste of training and salary costs. It could also leave negative impression on the company’s ability to attract future employees.
ReplyDeleteEmployee involvement can boost an organization's success, but often it does not provide the advantage in certain situations, such as when the organization does not provide them the benefits to involve them in their work. That gap is fulfilled when organization characterize employee work-place environment and trust between colleagues (Care 2007).
ReplyDeleteAdding more to your post, according to Dineen and Soltis (2011), the main purpose of recruitment process is to strike the equilibrium between an adequate supply of qualified talent and restricting the costs associated with generating too many or unqualified applicants. In absence of efficient planning systems, organizations may recruit the wrong type and number of persons and in absence of effective recruitment; organizations may end up selecting people who are not best in the talent market.
ReplyDeleteThe nature and quality of an organization's human resources indicates whether an organization has a more competitive edge than competitors. For this reason, human resource management must ensure that planned strategies for recruitment and selection are followed at every stage of the recruitment and selection process (Otoo,I.C.et al. 2018).
ReplyDelete