http://www.iaeme.com/IJM/index.asp 44 editor@iaeme.com
International Journal of Management (IJM)
Volume 8, Issue 5, Sep–Oct 2017, pp. 44–52, Article ID: IJM_08_05_005
Available online at
http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=5
Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
EMPLOYEES PERCEPTION ON
RECRUITMENT AND SELECTION PROCESS IN
PUBLIC AND PRIVATE SECTOR BANKS
S. Nava Rethna Bala Kumari
Research Scholar, Research Centre in Commerce,
Women‟s Christian College, Nagercoil, Tamilnadu, India
Dr. R. Rathiha
Associate Professor of Commerce,
Women‟s Christian College, Nagercoil, Tamilnadu, India
ABSTRACT
Recruitment is the process of having the right person, in the right place, at the
right time and it is crucial to organizational performance. You’ll find here information
on the recruitment process, recruitment law, policy and methods, online recruitment,
costs of recruitment, recruitment advertising, recruitment agencies, consultants and
executive search, graduate recruitment, competency-based recruitment, application
forms, curriculum vitae, and internal recruitment. The objective of the study is to
Analysis of employees’ perceptions as to recruitment and selection process in public
sector and private sector banks. For this purpose 250 questionnaires were filled by the
bank employees. The policy and process should be revised. The process they have
been adopting so far has been somewhat effective, to adapt to the changing times, the
process should be revised according to the results of the study.
Key words: organizational performance, Management, Information, practice and
techniques.
Cite this Article: S. Nava Rethna Bala Kumari, Dr. R. Rathiha, Employees
Perception on Recruitment and Selection Process in Public and Private Sector Banks.
International Journal of Management, 8 (5), 2017, pp. 44–52.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=8&IType=5
1. INTRODUCTION
Recruitment is the process of having the right person, in the right place, at the right time and it
is crucial to organizational performance. You‟ll find here information on the recruitment
process, recruitment law, policy and methods, online recruitment, costs of recruitment,
recruitment advertising, recruitment agencies, consultants and executive search, graduate
recruitment, competency-based recruitment, application forms, curriculum vitae, and internal
recruitment.
Employees Perception on Recruitment and Selection Process in Public and Private Sector Banks
http://www.iaeme.com/IJM/index.asp 45 editor@iaeme.com
The term “recruitment” applies to the process of attracting potential employees to the
organization or company. It is a systematic means of finding and inducting available
manpower to apply to the company or enterprise for employment. Since it involves the
process of searching for prospective employees, it is concerned with the range of sources of
supply of labour or personnel, and of recruitment practice and techniques. The recruiting
activity in itself is selective or pre-selective, through choosing among the various sources of
labour supply and by the decision as to which candidates applying for employment should be
permitted to go through subsequent selection or screening procedures.
It is the process to discover sources of manpower to meet the requirement of staffing
schedule and to employ effective measures for attracting that manpower in adequate numbers
to facilitate effective selection of an efficient working force. Recruitment of candidates is the
function preceding the selection, which helps create a pool of prospective employees for the
organisation so that the management can select the right candidate for the right job from this
pool. The main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.
Usually, the recruitment process starts when a manger initiates an employee requisition for a
specific vacancy or an anticipated vacancy.
The recruitment sources management is an extremely significant goal of the recruitment
process. The recruitment sources deliver the candidates for the selection procedure in the
organization. The better the candidates are; the higher quality job candidates can be hired. The
proper management of the recruitment sources has a significant impact on the competitive
advantage of the organization. The better employees do not have to be more expensive, but
the organization has to manage the recruitment sources to attract the high quality job
candidates. The external recruitment is not the only goal of the recruitment process. Building
the strong internal recruitment helps the organization to keep the best talents in the
organization. The employees have a chance to apply for a new job position, and they can
change their career path. The internal recruitment is a difficult HR topic as the managers have
to allow their best employees to take a new role within the organization. The role of Human
Resources is in allowing the best employees to rotate and in supporting the managers in
developing the successors.
2. PUBLIC SECTOR BANKS
Public sector banks are those banks that are owned by the government. The government owns
these banks. In India 20 banks were nationalized in 1969 and 1980 respectively. Social
welfare is there main objective of these banks. They are divided into two groups i.e.
Nationalized Banks and State Bank of India and its associates. Among them, there are 19
nationalized banks and 8 State Bank of India associates. Public Sector Banks dominate
deposits and advances in the banking industry. Public Sector banks dominate the commercial
banking scenario in India. These public sector banks can be further classified into: State Bank
of India2) Nationalized banks3) Regional Rural Banks
3. PRIVATE SECTOR BANKS
These banks are those banks that are owned and run by private sector. An individual has
control over these banks in proportion to the shares of the banks held by him. Private sector
banks came into existence to supplement the performance of Public sector banks and serve the
needs of the economy better. As the public sector banks were merely in the hands of the
government, banks had no incentive to make profits and improve the financial. The main
S. Nava Rethna Bala Kumari, Dr. R. Rathiha
http://www.iaeme.com/IJM/index.asp 46 editor@iaeme.com
difference is only that public sector banks follow the RBI Interest rules strictly but private
sector banks can effect some changes but only after approval from the RBI
4. WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT FOR
BANKS
Human Resource Management is important for banks because banking is a service industry.
Management of people and risk are two key challenges faced by banks. Efficient risk
management may not be possible without efficient and skilled manpower. Banking has been
and will always be a „People Business‟. Though pricing is important, there may be other valid
reasons why people select and stay with a particular bank. Banks must try to distinguish
themselves by creating their own niches or images, especially in transparent situations with a
high level of competitiveness. In coming times, the very survival of the banks would depend
on customer satisfaction. Values need to be emphasized through concrete actions on the
ground and it would be the bank‟s human resource that would deliver this.
5. STATEMENT OF THE PROBLEM
The pace of change and the uncertainty about how markets will evolve has made it
increasingly important for companies to be aware of the employee selection practices they
participate in and to understand the roles that they play. The ability to continuously learn the
evolving bank dynamics, coupled with competence in aligning the HRD practices to changing
requirement, is one of the key sources of competitive advantage in present context. But
sometimes, despite the ability and competence, the banks fail to align their employee
recruitment and selection practices with the fast changing requirement. Therefore, there is a
great need to research the challenges in the existing employee selection practices in the
banking sector in India Hence, the present study entitled “Impact of employee‟s recruitment
process in public and private sector banks”, has been undertaken. The area covered is kanya
kumari district only and the study is restricted to the public sector and private sector banks
employees.
6. OBJECTIVES OF THE STUDY
In the light of the domain for research identified so far, the following objective have been set
for the present study, To Analysis of employees‟ perceptions as to recruitment and slection
process in public sector and private sector banks.
7. RESEARCH METHODOLOGY
This research study has been conducted and analyzed on the basis of primary data. Primary
data were collected by questionnaire method from public sector banks and private sector
banks. Five hundred respondents from the sample of public sector and private sector bank
employees have been collected for this study. The data is collected based on stratified random
sampling method. Secondary information sources used for the present research include the
journals and magazines and also include websites of banks.
7.1. Employees’ Perceptions as to Recruitment and Selection Process
The table describes the perceptions of the respondent employees on recruitment and the
selection process applied in the sample public sector and the private sector banks as indicated
by their responses which have been measured on five-point Likert Scale. To test whether there
is any significant difference among sector wise analysis of employees‟ perceptions as to
recruitment and selection process‟s‟ test has been applied.
Employees Perception on Recruitment and Selection Process in Public and Private Sector Banks
http://www.iaeme.com/IJM/index.asp 47 editor@iaeme.com
Table 1 Sector Wise Analysis Of Employees‟ Perceptions As To Recruitment And Slection Process
SL:NO
Variables
Mean score
t-
Statistics
P
Value
Public
Private
1
Well defined recruitment and selection system is
followed in our bank.
4.8120
4.6040
64.747*
.000
2
Line managers and HR managers participation is
high while recruitment and selection.
4.0880
4.1920
.455
.500
3
Valid and standardized tests are used in the
selection process of employees.
3.8920
4.0080
8.362*
.004
4
Selection system is based on those having the
desired knowledge, skill and attitudes.
3.7520
3.9820
17.493*
.000
5
Bank uses comprehensive selection process
before rending a decision.
3.6600
3.4640
7.516*
.006
6
Bank uses assessment centers for selection.
3.8640
3.8480
10.293*
.001
7
Bank uses unbiased test and interviewing
techniques for employee selection.
3.8320
3.6400
5.492*
.019
8
Bank selects employees without any bias.
3.9080
3.6480
5.492*
.019
9
A strong merit criterion is available for
employee selection.
3.8360
3.8600
4.856*
.028
10
Bank uses attitude and desire to work in a team
and individual as a criterion in employee
selection.
3.9640
3.8680
.068
.795
11
Moral of the existing employees can be lowered
due to poor process of recruitment and selection.
4.0280
3.6720
17.711*
.000
12
Dedication of employees towards performance
can increased due to fair practice in recruitment
and selection.
3.0320
3.1800
1.377
.241
13
Corporate social responsibility can lead to
attraction of employees towards the bank.
3.2680
3.3680
1.709
.192
14
Usage of competency model in selection process
may bring transparency in recruitment and
selection.
4.0560
3.8320
5.571*
.019
15
In selection process innovative techniques play
an effective role.
3.7040
3.8840
11.072*
.001
16
There is a vast scope for improvement in current
process of hiring.
3.9000
3.6280
5.492*
.019
17
The environmental factor affects the recruitment
and selection process like (political, job market).
3.9000
3.9240
7.068*
.008
18
The hiring process helps in identifying the
competence both visible and hidden aspects.
4.0320
3.6960
13.678*
.000
19
Current practices effectively help in reducing the
gap between available supplies against the
forecasted demand.
3.8080
3.7280
.587
.444
20
Employer branding plays key role in more
successful recruitment and retention of top
talent.
2.7640
3.1600
4.307*
.038
Overall recruitment process
3.8050
3.7593
Note: Data in parenthesis is percentage
Source: Primary Data
S. Nava Rethna Bala Kumari, Dr. R. Rathiha
http://www.iaeme.com/IJM/index.asp 48 editor@iaeme.com
7.2. Significant at Five Percent Level
From the above, it is seen that among public sector bank employees‟ recruitment and selection
process is high for the variables, „Well defined recruitment and selection system is followed
in our bank‟, „Line managers and HR managers participation is high while recruitment and
selection‟, „Usage of competency model in selection process may bring transparency in
recruitment and selection‟, „The hiring process helps in identifying the competence both
visible and hidden aspects‟, since they have the highest mean scores of 4.8120, 4.0880,
4.0560 and 4.0320 respectively. They have the lowest process for the variables, „Employer
branding plays key role in more successful recruitment and retention of top talent‟,
„Dedication of employees towards performance can increased due to fair practice in
recruitment and selection‟, „Corporate social responsibility can lead to attraction of employees
towards the bank‟, since it has the lowest mean scores of 2.7640, 3.0320 and 3.2680
respectively.
Private sector bank employees‟ recruitment and selection process is high for the variables,
„Well defined recruitment and selection system is followed in our bank‟, „Line managers and
HR managers participation is high while recruitment and selection‟, „Valid and standardized
tests are used in the selection process of employees‟, „The environmental factor affects the
recruitment and selection process like (political, job market)‟, since they have the highest
mean scores of 4.1920, 4.0880, 4.0560 and 4.0320 respectively. They have the lowest process
for the variables, „Employer branding plays key role in more successful recruitment and
retention of top talent‟, „Dedication of employees towards performance can increased due to
fair practice in recruitment and selection‟, „Corporate social responsibility can lead to
attraction of employees towards the bank‟, since it has the lowest mean scores of 3.1600,
3.1800 and 3.3680 respectively.
Overall recruitment process is high among public sector bank employee‟s (mean score
3.8050) compared to private sector bank employee‟s (3.7593). Perhaps this may be because of
the bank employee‟s most preferable to joint public sector banks than private sector banks.
Regarding the employees‟ recruitment and selection process in public and private sector
banks significant difference have been identified in the case of all the twenty variables except
five variables, „Line managers and HR managers participation is high while recruitment and
selection‟, „Bank uses attitude and desire to work in a team and individual as a criterion in
employee selection‟, „Dedication of employees towards performance can increased due to fair
practice in recruitment and selection‟, „Corporate social responsibility can lead to attraction of
employees towards the bank‟, „Current practices effectively help in reducing the gap between
available supplies against the forecasted demand‟, since their respective „t‟ statistics are
significant at five percent level.
7.3. Factor loading for the variables in recruitment and selection process
In this study twenty variables relating to the factor of recruitment and selection process
among public sector and private sector banks namely „Well defined recruitment and selection
system is followed in our bank‟, „Line managers and HR managers participation is high while
recruitment and selection‟, „Valid and standardized tests are used in the selection process of
employees‟, „Selection system is based on those having the desired knowledge, skill and
attitudes‟, „Bank uses comprehensive selection process before rending a decision‟, „Bank uses
assessment centers for selection‟, „Bank uses unbiased test and interviewing techniques for
employee selection‟, „Bank selects employees without any bias‟, „A strong merit criterion is
available for employee selection‟, „Bank uses attitude and desire to work in a team and
individual as a criterion in employee selection‟, „Moral of the existing employees can be