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Impact of E-recruitment on Organizational Effectiveness

Aftab Alam
Quaid-i-Azam University, Islamabad

Abstract

Purpose:

The purpose of this study is to examine the influence of e-recruitment E-R on organizational
effectiveness in various organizations in Islamabad.

Design/Methodology: The researcher conducted a questionnaire survey by distributing 120

questionnaires to the respondents including both male and female. The number of questionnaires
returned was 108 out of which 8 questionnaires were not properly filled; it means the return rate
was 83%.

Findings: In this study, we found that the role of e-recruitment was important for organizational
effectiveness, and the independent variable E-recruitment was found influential on
organizational effectiveness. The correlation between e-recruitment and organizational
effectiveness was positive.

Practical Implications: The study show that e-recruitment process helps in identify best
candidate for the jobs and helps creating a huge pool of candidates to select the most talented
individuals for the organization. The study also suggests that organizational effectiveness can be
achieved by providing necessary information about the job and organizational goals to the future
employees.

Originality/Value: The study provides important information about e-recruitment and its need
in every organization for effective performance and helps managers to recruit quality human
resource.

Keywords: E-Recruitment, Organizational Effectiveness, Internet, Diversity, Career

development, Job satisfaction, Human resource

Paper Type: Academic Research Paper (Human Resource Management –MPA-3)

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Introduction:

Technology has provided supportive role to achieve organizational goals in contemporary

dynamic environment. To get quality of human resource and raise talented workforce, e-
recruitment has been an emerging practice. The e-recruitment has been an effective tool for
hiring and motivating effective human resource in a wide geographic region. This study
examines the influence of e-recruitment practices on the effectiveness of organization. Today’s
knowledge centered markets are subject to fast changes, which require efficient and effective
recruiting methods to satisfy the demand of organizations to react to the new and growing
challenges with competency based products by getting the right employees into the right jobs.
Effective recruitment is all about bringing talented individuals or groups to the organization in a
mean time to attain the organizational goals. The role of e-recruitment is not only hiring talented
individual but it has to provide useful information and aware fresh blood with a realistic job
preview, which assist them to plan career and involve in the organization. [ CITATION Rac10 \l
1033 ]. In response to the pressure of globalization, increasingly competitive markets, and
volatile market dynamics, many organizations are actively seeking ways to get competitive
advantage by investing more in human resource. Training and career building is essential for
organization to polish the existing and new human capital which leads to agreeable difference in
term of output and effectiveness as compare to the competitors in the business world [ CITATION
DwO07 \l 1033 ]. The key elements for the organizational effectiveness are the people system and
processes, capable people doing the right work fitting the purpose and persuasive behavior to
develop employee engagement for driving sustainable business success[ CITATION Rig10 \l 1033 ].
Organizational effectiveness is also understood by the organizations bargaining position which
limits the influence of alarming condition of scare and valuable resources. For the purpose of this
paper organizational effectiveness is defined as the extent to which the organization care about
the satisfaction of employees and employee involvement as Job satisfaction was subsequently
linked to increases in productivity and the perception how well employees understand their job
[ CITATION PAN12 \l 1033 ]. Organizations are considerable depend on their individual employee
performance to gain high productivity in the organization. Employee effort is an important factor
that determines an individual performance and the collective performance in organization results
in the overall effectiveness this is why managers have to ponder about their recruitment
standards and policies. Therefor in today’s high tech world we have to measure the influence of
electronic recruitment on the organizational performance and understand how well both are
related to for making decisions and recruiting skillful human resource.

Literature review

The Information and communication technologies are most important value creators and
success factors of every institution. According to a popular newspaper Express Tribune there 30

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million users connected through internet in Pakistan. To utilize this human resource and continue
economy activity managers had obtained the online platform to achieve effectiveness.

E Recruitment:

Some recent studies on the effectiveness of internet in recruitment and selection have reflected
the benefits delivered by Internet to the organizations [ CITATION Gop12 \l 1033 ]. Online
recruitment is also assisting organization to pool the young labor force in the country. The term
online recruitment, e-recruitment, or internet recruiting, imply the formal sourcing of job
information online. E-recruitment is about the dynamic co-ordination and communication flow
of information between businesses and job-seekers [ CITATION Nat13 \l 1033 ]. Online recruitment
helps organization to meet the ever changing HR needs to fill position with dynamic and
competent human resource. The main aim of this research is to identify the impact of E.R
(electronic recruitment) on organizational effectiveness. Many employers have been working on
recruiting talented individuals around the world, the source of successful individual are
approached through intensive communication methods including the internet. the recruitment
field has transformed and reviewed its practices to a great extent due to the changes in how
individuals search for employment and expect to be hired [ CITATION Ann14 \l 1033 ]. The role of
human resource management in this global corporate culture is to identify the talented and
skillful human resource and communicate with them to motivate and polish individuals or groups
for organization. The new approach of E-recruitment has mitigated the advertising cost and
hiring time to establish a smooth channel between the labor market and organization.

Organizational effectiveness:

The measurement of organizational effectiveness is a very important step in the improvement

process of any organization [ CITATION Vir96 \l 1033 ] Organizational goals are supported by
different resources which include financial, technological, human, and other resources. Among
it, human resource management is the prime one, which ensures right man for right job. This
activity paves way for optimum organizational performance and attainment of goals.
Organizational effectiveness is defined as the extent to which an organization, by the use of
certain resources, fulfills its objectives without depleting its resources and without placing undue
strain on its members and/or society[ CITATION Mar06 \l 1033 ]. Organizational effectiveness is
mainly influenced by the means. The study focused on identifying variables of means so that an
inquiry is made on how they affect organizational effectiveness[ CITATION Ven13 \l 1033 ].
Employee morale is a fundamental component of business operations high morale coincides with
job satisfaction, high work effort, creativity and initiative, a sense of pride in one’s work, a
commitment to one’s organization, and the desire to put the achievement of group (common)
goals ahead of personal goals, thereby enhancing an organization’s effectiveness[ CITATION Hen09
\l 1033 ]. Job seekers without access to the internet have a competitive disadvantage compared to
their internet-enabled peers (Rooy et al., 2003 in Searle, 2006). The diverse nature of applicants
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on internet without bounded under a geographical area drives organization to work with different
people with different cultural and demographic backgrounds.

Theoretical framework

After careful consideration and review of available literature the proposed research framework is
shown in figure 1 below:

Figure 1

Organizational
E-recruitment
Effectiveness

Hypothesis

Following two statements are developed as hypothesis for testable

H1: E-recruitment is positively related to organizational effectiveness

Methodology:

A quantitative research method was used in the research for data collection; the questionnaire
was composed of two variables. Organizational effectiveness was taken as a dependents variable
composed of nine items which were adopted from[CITATION Hen00 \l 1033 ]. The independent
variable was also composed of nine items which are adopted from [ CITATION VIN11 \l 1033 ]. The
population of study was employees of different organization in Islamabad. Because items were
adopted for that pilot testing was carried out on a sample size of 100. In pilot testing factor
analysis and Cronbach’s Alpha were carried out through SPSS. After pilot testing 120
questionnaires were distributed and 108 questionnaires were returned out of which 8 were not
completely filled so sample size is 100 and the response rate was 83%. Both dependent and
independent variables were measured on a five-point Likert scale whose range from (1) strongly
disagree to (5) ‘Strongly agree’. Other than the measurement of variables the demographic
section was also included in the questionnaire which was composed of gender, level of education
of employees their current income level and tenure with the organization. SPSS 16 was the tool
used to do the statistical analysis. In order to check the reliability of the variables, the researcher
used Cronbach’s alpha. Frequency analysis has been done by the researcher in order to check the
reliability of the variables. To test the hypothesis, correlation test was used. Regression analysis
was done by the researcher in order to check the variation of the data.

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Results

Table 1 Table of Demographics

Characteristics   Frequency Percent %

Gender
Male 55 55
Female 45 45
Age
21-30 67 67
31-40 27 27
41-50 5 5
Above 51 1 1
Education
Bachelors 12 12
Masters 54 54
MS/Mphil 28 28
Phd 6 6
Income Level
Bellow 10000 27 27
10000-50000 43 43
50000-100000 20 20
Above 100000 10 10
Tenure
Less than 1 year 36 36
1-3 years 34 34
3-5 years 16 16
More than 5 years 14 14
       
The above data illustrate that the study was dominated by young people who participated in the study
enthusiastically. Furthermore big ratio of the participants had at least Master’s degree .The participants
has verity of income levels 43% of those were earning between “50000-100000”. Further with the
discussion 55% of the respondents of the study were males and the ratio who worked for less than 1
year was 36% and 34% had been with the organization for more than one year but less than 3 years.
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Table 2

Factor Analysis

Items Component 1 Component 2

  Cronbach's Alpha

E-Recruitment 0.82

ER1 0.666
ER2 0.633
ER3 0.667
ER4 0.654
ER5 0.681
ER6 0.687
ER7 0.508
ER8 0.642
ER9 0.719
Organizational
Effectiveness 0.86
OE1 0.499
OE2 0.676
OE3 0.691
OE4 0.689
OE5 0.651
OE6 0.704
OE7 0.733
OE8 0.742
OE9 0.789
         
Measure of e-recruitment and organizational effectiveness

The two factors were e-recruitment and organizational effectiveness, the Cronbach’s alpha of
E-recruitment is .82 and .86 of organizational effectiveness.

The principal components method of extraction was used in this study as it finds a linear
combination of variables (a component) that accounts for as much variation in the original
variables as possible. It then finds another component that accounts for as much of the remaining
variation as possible and is uncorrelated with the previous component, continuing in this way
until there are as many components as original variables.

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Table 3

    Correlations      
ORGANIZATIONA
ERECRUITMENT L EFFECTIVENESS
Pearson
ERECRUITMENT Correlation 1
Sig. (2-tailed)
N 100
ORGANIZATIONAL Pearson
EFFECTIVENESS Correlation .605** 1
Sig. (2-tailed) 0
    N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).

The correlation between E- recruitment and organizational effectiveness is .605 which is

significant at 0.01 level. This means that there is a moderate relationship between E-recruitment
and organizational effectiveness. It means that changes in one variable are correlated with
changes in the second variable. In above table, Pearson’s r is 0.605 which is close to 1. For this
reason, we can conclude that there is a moderate relationship between ER and OE variables.
Hence the correlation analysis result confirmed that hypothesis 1 (H1) is accepted.

Table 4 Regression Analysis

      Coefficients(a)      
Unstandardized Coefficients Standardized Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.674 0.282 5.934 0
  ERECRUITMENT 0.561 0.075 0.605 7.512 0
a. Dependent Variable:
ORGANIZATIONALEFFECTIVENESS

Table 4 shows that E-recruitment has a positive relationship with Organizational effectiveness
and that increase e-recruitment leads to an increase in organizational effectiveness by 0.561
units. The Significance shows the goodness of data

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Table 5

    Model Summary    
R Std. Error of the
Model R Square Adjusted R Square Estimate
1 .605a 0.365 0.359 0.49702
a. Predictors: (Constant), ERECRUITMENT
   
This table provides the R and R2 values. The R value represents the simple correlation and is
0.605 (the "R" Column), which indicates a high degree of correlation. The R2 value (the "R
Square" column) indicates how much of the total variation in the dependent variable,
Organizational effectiveness, have relation to the independent variable, E-recruitment. In this
case, 36.5% can be explained, which is moderate.

Research limitations

The presented research is not without limitations and circumscribed to the national setting, the
research was conducted in small geographical in Islamabad due to the need for research in the
academic field. Due to lack of time and finance the sample size was less and it can be increase.
Organizational effectiveness can be measure with different factor in this research Organizational
effectiveness is study with the job satisfaction, job involvement and career development. Some
researcher had also argued that the effectiveness of organization is depending on its nature and
vision of the organization. Only limited researchers have been conducted over the effectiveness
of online recruitment and selection process. So, there is lot of scope to conduct further research
over this growing phenomenon that is currently on the prime focus for organization. Our study
specially focuses on the young employees and mostly who are affiliated with the organization for
less than three years.

Discussion

This study reveals that e-recruitment practices within organization facilitate it to adopt with
changing trends and also helps in increasing effectiveness of the organization. This investigation
proves that e-recruitment has positive impact on organizational effectiveness. Besides, that the
study also reveals that the organization which follow e-recruitment processes are tend to be more
effective in terms of retaining and hiring diverse workforce from a wide geographical area. The
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research study found results aligned with previous researchers findings of [ CITATION Nav13 \l
1033 ], [ CITATION VIN11 \l 1033 ][ CITATION Vir96 \l 1033 ].

Recommendations

Organizations need to make E-recruitment as a part of their operational component of their HR

strategy in this rapid changing business world. The application of E-recruitment system in
organizations will promote easiness with fastness by establishing it in organization like
universities, social developmental projects, colleges; media and entertainment. Effective e-
recruitment enables organizations to provide job preview and proper job description to candidate
which will result in best candidates for the job. To promote this procedure up to the desired
outcome it is required to establish user friendly software or procedures to attract competent
candidates conveniently and make the organization good from workforce perspectives. Besides,
strong networking system should be ensured to promote employee leasing program, transferring,
and outsourcing. This study found that e-recruitment is an effective way for job seekers and
employers hence is a key to maintain competitive edge in the job market as job seekers can apply
for multiply jobs in less time with low cost and employer can increase their chance of hiring
potential candidates. However, to successfully implement the e-recruitment strategy at national
level in a country like Pakistan there are many constraints including culture differences, access to
internet, security of data and lack of technical staff.

Future Implication

The research can be extended taking sample from different nature of organizations. Impact of e-
recruitment on organizational effectiveness could be compared with other geographical areas.
Furthermore research on employer behavior and adoption patterns can be conducted. The study
can be replicated with bigger sample size. The model developed can be tested with different
scaling method. Further research on employer behavior and adoption patterns would help in
understanding other factors sharing influence on organization.

Acknowledgements

The researcher is greatly indebted to, supervisor Madam Humera Malik. I also thank respondents
who actively participated and made unbiased contributions.

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