ASSESSMENT OF THE EFFECT OF RECRUITMENT ANDSELECTION ON

RETENTION OF EMPLOYEES IN AWASH BANK MIZAN BRANCH.

SENIOR RESEARCH SUBMITTED TO THE DEPARTMENT OF BUSINESS

MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
OF THE AWARDS OF BACHELOR OF ARTS DEGREE IN BUSINESS
MANAGEMENT

BY: AMANUEL TSGAYE ID .NO 0191/11

ADVISOR: MR. FUAD A.

COLLEGE OF BUSINESS AND ECNOMICS

DEPARTMENT OF BUSINESS MANAGEMENT

Mar, 2023
Jimma, Ethiopia
Acknowledgements
First and foremost, I would like to thank to God for giving me the strength
and faith to deal with my studies. Next, all the credit goes to my late parents who
raised me to be courageous and confident. I am just trying to fulfill my dreams and
this is for you. I am also grateful to my family, special
thanks for allowing me to go back to school, for the encouragement and support
given. Fuad A. I give my heartfelt gratitude for devoting his time,
extreme patience, on time responses, professional assistance and guiding me
throughout the different stages of this research project and I truly am grateful for
every single help.
Finally, I wish to thank all my friends and colleagues, as well as
discussions during the entire course work period.
Lastly I want to thank all the respondents who took part in the survey and agreed to
fill out the questionnaires and gave their consent to be interviewed by me. I truly
want to thank branch managers and directors of the bank for facilitating and
assisting me to get the filled questionnaires returned back on time.
Thank you all and be blessed.

vii
 LIST OF ACRONYMS/ABBREVIATIONS

BA: Awash Bank

HRM: Human Resource Management

HRMD: Human Resource Management Development

CSO: Customer Service Officer

SCSO: Senior Customer Service Officer

CRO: Customer Relation Officer

CSM: Customer Service Manager

SPSS: Statistical Package for Social Security

Abstract
Recruitment, as a human resource management function, is one of the activities that have
the greatest impact on the performance of an organization. While it is understood generally
that poor recruitment practices can low organizational performance and stifle goal
achievement, many organizations are yet to take programmatic steps to evaluate their
recruitments methods with the view to identify and implement new, effective hiring
strategies .The study overall objective to examine the current recruitment and selection
practices in the course of selecting the best human power demanded and provide possible
vii
ways in order to improve the problems in current recruitment and selection process of
Awash Bank Mizan Branch. To this end, descriptive research method was used.
Questioners, interview and review of documents were designed based on the objectives. To
analysis the research was used stratified random sampling to distribute 34 questionnaires
to employees of AB Mizan Branch where all were filled and returned. Interview was also
with human resource directorate head of the AB Mizan Branch. This completed
questionnaire were processed and analyzed by using table, graph, pie chart and textual
write ups. The findings of the study illustrated the recruitment and selection practice HRM.
AB has clear policy which is practiced by Human Resources manual but the staff members
are not aware of it. Moreover, the recruitment and selection process are not effective at
recruitment stage and all selection process were not pursued. Provide recommendation for
improving recruitment and practice at the AB Mizan Branch and from this finding. Hence,
the Awash Bank Mizan Branch should periodically review its policies and procedures,
strategy in order to attract new employees and commit the existing once.

Key words: Human Resources, Recruitment, selection

vii
Table of Contents
CHAPTER ONE ................................................................................................................................................................ 1
1. INTRODUCTION ......................................................................................................................................................... 1
1.2. Statement of the Problem ............................................................................................................................................ 2
1.3. Research Questions ..................................................................................................................................................... 2
1.4. Objectives of the study ................................................................................................................................................ 2
1.4.1. General objective ..................................................................................................................................................... 2
1.4.2. Specific Objectives .................................................................................................................................................. 2
1.5. Significance of the Study ........................................................................................................................................... 3
1.6. Scope of the Study ...................................................................................................................................................... 3
1.8 Organization of the Study ............................................................................................................................................ 3
CHAPTER TWO ............................................................................................................................................................... 4
2. REVIEW OF RELATED LITERATURE ..................................................................................................................... 4
2.1. Recruitment and selection ........................................................................................................................................... 4
2.2. Employee Engagement ............................................................................................................................................... 4
2.3. Employee Retention .................................................................................................................................................... 5
2.4. Recruitment and selection and employee retention ..................................................................................................... 5
2.5. Employee engagement and employee retention .......................................................................................................... 5
3.6. Theoretical literature Review ...................................................................................................................................... 6
2.7. Herzberg’s motivation-hygiene theory........................................................................................................................ 6
3.2.3. Sampling Techniques ............................................................................................................................................... 7
3.4. Data Gathering Instrument ...................................................................................................................................... 7
3.5. Procedure of Data Collection ...................................................................................................................................... 7
3.7. Method of data analysis .............................................................................................................................................. 7
3.8. Ethical Considerations ................................................................................................................................................ 8
CHAPTER THREE ........................................................................................................................................................... 8
3.1. RESEARCH DESIGN AND METHODOLOGY....................................................................................................... 8
3.1. Research Design and Approaches ............................................................................................................................... 8
3.2. Source of Data............................................................................................................................................................. 8
A. Primary Data ................................................................................................................................................................. 8
B. Secondary data .............................................................................................................................................................. 9
3.3. Research design .......................................................................................................................................................... 9
3.4. Target population ........................................................................................................................................................ 9
CHAPTER FOUR ............................................................................................................................................................ 10
RESULT AND DISCUSSION ........................................................................................................................................ 10
4.1. Introduction ............................................................................................................................................................... 10

V
4.2. Demographic Characteristics of the Respondents ..................................................................................................... 10
4.3 Data Analysis Pertaining to the Study ....................................................................................................................... 12
4.3.1 Recruitment and Selection Practice......................................................................................................................... 12
4.3.3 Selection Test .......................................................................................................................................................... 17
4.3.4 Conduction of Selection Interview .......................................................................................................................... 19
4.3.5 Pre-Employment Checkup ...................................................................................................................................... 20
4.3.6 Orientation and Induction ....................................................................................................................................... 21
4.3.8 Challenges ............................................................................................................................................................... 22
CHAPTER FIVE.............................................................................................................................................................. 23
SUMMARY, CONCLUSION AND RECOMMENDATIONS ...................................................................................... 23
5.1 Introduction ................................................................................................................................................................ 23
5.2 Summary of Major Findings ...................................................................................................................................... 23
5.4 Recommendations ...................................................................................................................................................... 25
References ........................................................................................................................................................................ 26
APPENDEICES ............................................................................................................................................................... 28

VI
List of Figure and Table
Figure1: Gender of employee--------------------------------------------------------------------------12
Figure2: Age of employee-------------------------------------------------------------------------------14
Table 1: Frequency Distribution-Demographic Characteristic--------------------------------18
Table 2: Vacancy Advertisement Practices--------------------------------------------------------21
Table 3: Vacancy Advertisement Practices--------------------------------------------------------23
Table 4: Selection Test Practices---------------------------------------------------------------------27

Table 5: Interview Practices--------------------------------------------------------------------------29

Table 6: Pre-employment checkup practices------------------------------------------------------31

Table 7: Selection Test Practices--------------------------------------------------------------------33

VII
 CHAPTER ONE
1. INTRODUCTION
This chapter deals with the background of the study, operational definition of key terms,
statement of the problem, objective of the study, research questions, significance of the study,
scope of the study, limitations of the study, and organization of the study.
1.1. Background of the study
Banks play an important and active role in the financial and economic development of a country.
An effective banking system greatly influences the growth of a country in various sectors of the
economy. Practitioners in the banking industry face a large number of complex challenges in the
global marketplace. Attracting and retaining competent employees are becoming a headache for
many companies. Different strategies may be designed to do the same, like improving the
working conditions, good employee relationship management, attractive salary and benefits,
promotion opportunities, job security, career development etc. Healthy intended compensation
system enables organizations to attract qualified employees required, retain and inspire the
existing work force towards goal achievement. The most obvious compensation employees get
from work is pay (Decenzo and Robbins, 1999).
Uncertainty and globalization in the business settings have increasingly caused firms to turn
majorly to their human capital to supply them with the commensurable advantage that will not
only uphold their businesses but also enhance their bottom lines (Poorhosseinzadeh &
Subramaniam, 2012; Hassan 2016). Most Bank still lack understanding of how important human
resource development and talent management are, which invariably have created barriers to the
successful implementation of their talent management policies. The concept of talent
management, as it is, are understood and practiced by multinational firms and large domestic
companies (McDonnell, Lamare, Gunnigle, & Lavelle, 2010). However, Mendez (2013) stressed
that talent management and human resource management are increasingly becoming more
significant in few Banks. Unfortunately, the implementations of talent management practices in
these Bank are the same with the larger firms. Studies in different settings stressed that talent
management is very vital in current economy, but to the knowledge of the researchers none has
analyzed its effect on employee retention in Banks in Nigeria, hence this paper fills the void.
Recruitment has been identified as one of the talent management practices by many scholars in
literature, including: Oladapo, (2014); Chitsaz-Isfahani & Boustani, (2014); and Iles, Chuai &
Preece, (2010).
As such this study aims at identifying the effect that recruitment and selection is on employee
retention in selected Awash Bnak in Mizan Branch, using employee engagement as a mediating
variable.
The study is focused on the effect of recruitment and selection on employee retention in selected
Awash Bnak in Mizan Branch. Therefore, this work contributes to extant literature on

1
 recruitment and selection as well as employee retentions and serves as a reference document for
practitioners, academics and policy makers.
1.2. Statement of the Problem
Retention of the best talented and most desirable employees is a key challenge to organization.
By considering different factors corporate human resource department should take a deep
concern in their employee turnover rate because it incurs different expenses. The cost of
employee turnover seriously impact on organizational performance and growth. recruitment and
selection on employee retention of the big challenges to the organizations. In order to attain
corporate goals, organizations have to retain their key employees (Meyer, 2003). Employee
recruitment and selection on employee retention becomes a critical important ingredient in
maintaining an effective human resource management in an organization.
In recent days Awash Bank Mizan Branch has been encounter with turnover problems. Most of
the recruitment and selection on employee retention is starting from lower position to managerial
positions. Awash Bank is doing well in implementation of various human resource
practices like human resource planning, job analysis, recruitment and selection, promotion,
human resource development, and succession by seniority. But in practical way the attention
given to recruitment and selection on employee retention on Awash Bank Mizan Branch is not
satisfactory, because employee turnover increase from year to year based on the five years data
shows that in 2018/2022, such that the statement of the problem is recruitment and selection on
employee retention on Awash Bank Mizan Branch.
1.3. Research Questions
Q1.What is the effect of recruitment and selection on employee
retention practices that are implemented in the Bank?
Q2. Which factors are affecting recruitment and selection Practices
on employee retention on Awash Bank Mizan Branch ?
Q3.To what extent does employee of the Bank satisfied with their working environment, training
job security, salary and benefits?
1.4. Objectives of the study
The general and specific objectives of this research are discussed as follows:
1.4.1. General objective
The main objective of this study aims at identifying the effect recruitment and selection ion
employee retention in Awash Bank Mizan Branch.
1.4.2. Specific Objectives
The following are concerned with achieving the specific objective of the study.
 To explore the effect recruitment and selection in employee retention practices that
implemented in Awash Bank Mizan Branch.
 To see factors that are contributing employee’s recruitment and selection is on employee
retention Awash Bank Mizan Branch.

2
 To examine the current level of satisfaction on working conditions, training, job security,
salary and benefit

1.5. Significance of the Study

The study was assessing employee’s recruitment and selection in employee retention practice on
employees of Awash Bank Mizan Branch.
Importance of this study including providing the possible suggestion for better
implementation of Awash Bank Mizan Branch. The study has important for Awash Bank Mizan
Branch to know the general weakness and strength of human resource management in order to
maintain the effective methods of employees recruitment and selection is on employee retention. It
helps the organization in order to identify the problem that why employees of Awash Bank Mizan
Branch leave the organization and join other private Bank sectors. The study was also providing
the key information of the gap between the management and employees for recruitment and
selection is on employee retention the employees in the working environment of Awash Bank
Mizan Branch. It helps the Bank to reduce the cost of recruiting and selection of employees. This
research was important to know how human resource managers treat their employees by giving
different incentives or motivational methods in order to retain key employees.
The study will help to identify benefits of employee’s recruitment and selection is on employee
retention and to provide possible recommendation for overall view of employee retention practice
in the Bank. This study would be expected to add something to the world of wisdom or practical
problems. Researchers will also use the findings of the study as a spring board to further
investigate on the area of employee recruitment and selection on employee retention practice of
any organizations. The research helps to develop farther knowledge and skill on research area for
the researcher.
1.6. Scope of the Study
This research was conducted at Awash Bank Mizan Branch. The scope of the study Was limited
on assessing player’s recruitment and selection on employee retention is practices at Awash Bank
Mizan Branch with eight variables working environment, employee relationship, organizational
justice, salary and benefits, job security, career development, recognition and training. In addition
to this the researcher believed that it would be appropriate to conduct the study in large scale
.However, because of the limited time and other resource constraints the researcher did not doing
in large. So, the study is intended to assess employee recruitment and selection is on
employee retention practice at operational level.
1.8 Organization of the Study
The paper has consisted of five chapters. The first chapter focuses on background of the study,
definition of key terms, statement of the problem, research question, objective of the study,
significant of the study, scope of the study, limitation of the study and organization of the study.
The second chapter consists of review of related literature. The third chapter covers research
design and methodology, source of data, data gathering tools, sample size and sample
techniques, and methods of data analysis.
3
 CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1. Recruitment and selection
Recruitment and selection of employees include those activities of the organization that
affect the types or number of candidates who apply for a position and influence whether
there will be an acceptance of a job offer (Ramki, 2015; Khan, Khan, & Khan, 2017). The
author in underlining the vital significance of these functions, views the notion as moves
and exercises undertaken by a company to distinguish and draw in talents that have the
ability to help the firm achieve its key objectives. Lyria, (2013) and Mohammad, Miah,
Rahman, & Rahaman, (2017) submitted that recruitment and selection in organizations
requires that the firm utilize different techniques or strategies in choosing the appropriate
talents that mirrors the value and culture of that company. The author further states that
the enlistment of individuals in a talent pool is the primary undertaking of talent
management technique. The talent pool is an assemblage of potential workers with
exceptional qualities and the foundation of future senior executives. The development
capability of companies worldwide hinges on the capacity of firms to have the appropriate
person or persons for a role, in the correct place at the appropriate time (Kibui, 2015).
Human resource specialists and academics believe that growth, survival and development
of a firm largely rely on an efficient and effective culture of recruitment, selection and
positioning of individuals endowed with extensive and more profound scope of preferred
attitudes, core competencies, knowledge, experiences and skills (Ofori & Aryeetey,
2011). Recruitment and selection in firms is an important issue and their effectiveness
and performance, relies on the nature of talents from the recruitment and selection process
(Ezeali & Esiagu, 2010; Pradhan, Dash, & Jena 2017).

2.2. Employee Engagement

Engagement is about zeal and responsibility, the eagerness to give and stretch oneself
beyond average to promote the success of the business, which is part basic satisfaction of
the employment arrangement (Sridevi & Markos, 2010). Contemporary firms require
employees who are mentally associated with their work, who are eager and ready to put
themselves completely in their parts, and who are proactive and focused on astounding
benchmarks. According to Ahlowalia, Tiwary and Jha (2014), individuals' attachment of
"meanings" with respect to the work environment are unmistakably connected to how
much of engagement they display and, eventually, their performance. Employee
engagement is a major predictor of positive performance in an organization and it visibly
demonstrates the two-path connection between employee and employer (Rana, & Malik,
2017). The authors further stressed that engaged workers are openly joined to their
organization and profoundly involved in their occupation with an incredible excitement
for the employer’s success; they may also go additional miles way past the business’s
legally binding agreements. Sridevi and Markos (2010) additionally added that the drivers
of employee engagement is that feeling of being included and appreciated, which has the
elements, such as participation in decision-making, workers readiness to give voice to
their thoughts, the available opportunities that employees need in order to build up their
professions and how much the organizations are ready to care for workers' prosperity.

4
2.3. Employee Retention
(Baruah, 2013) asserts that employee retention is urging workers to stay in the company
for a longer stretch of time, additionally; it is a process of encouraging workers to remain
with the firm for the greatest time period or till the end of a project. Employee retention
is viewed as a vital Human Resource (HR) activity as it includes long-term development
and retention of talented employees, forecasting strategic organizational needs,
identifying talents for succession planning to fulfill future business needs (Govaerts,
Kyndt, Dochy & Baert, 2011). Some believe that firms simply need to pull in and develop
talents and not focus on the vital issue of retention, as such when the time comes to pick
up profits for their investments, the talents leave their firms (Poorhosseinzadeh &
Subramaniam, 2012). However, the success of firms relies on workers retention which
helps the firms in decreasing turnover of employees and improving efficiency (Chitsaz-
Isfahani & Boustani, 2014). The principle reason for retention is to keep skilled
employees from leaving the company as this could adversely affect efficiency and service
delivery (Ng'ethe , Iravo & Namusonge, 2012) According to Ratna and Chawla (2012)
the procedure of worker retention will profit a firm as the cost of worker turnover results
in countless cost to an organization's bottom-line, it likewise implies that if an
organization’s rate of retention of employees is high, it will spur prospective employees
to be part of the organization. Accordingly, more companies are beginning to explicitly
concentrate on keeping their best talents, (Liang, 2013; Rana, & Malik, 2017).
2.4. Recruitment and selection and employee retention
Chitsaz-Isfahani and Boustani (2014) further asserts that the fight for retention begins at
the stage of hiring, with organizations selecting employees whose interests and talents fit
with the needs of the company, whether short or long term in nature. Recruitment need
to be made in line with what is essential to the organization and its future goals by keeping
in view the retention of the workers (Aibieyi & Henry, 2015). To draw and retain talent,
compatibility hiring, that is the “fit” between employer and worker is critical. The author
further stressed that recruiting the right individuals in right positions is vital to empower
firms to enhance retentions. Based on these, this paper infers that:
2.5. Employee engagement and employee retention
According to Kibui (2015), employee engagement is a key factor in talent management
and retention. It is the drive that inspires workers to higher or lower levels of
performances, and the level of involvement and commitment an individual has towards
the company. The author added that it is a prevailing source of competitive advantage and
in this manner has become attractive because of its reported capacity to solve challenges
of the organization, for example, diminishing turnover rates and expanding profitability.
Employee engagement has positive connections to several main organizational results,
for example, profitability, productivity, business development, quality, consumer loyalty,
retention of workers and job performance (Sundaray, 2011). In their exploration on
individual elements of employee engagement, Ologbo and Sofian (2012) inferred that
employee engagement maybe a solid element for organizational performance and
accomplishment as it has a huge ability to influence workers’ steadfastness, efficiency
and retention. Muhammad Asad khan , Rosman Md Yusoff , Altaf Hussain , Fadillah
Binti Ismail (2019) argued that the absence of employee engagement could debilitate
employees lasting commitment to the company, creating difficulty in pulling in,
developing, adjusting and retaining very skilled workers; as such employee engagement
is of key importance to effective retention of individuals that are talented. Donald (2014)
5
 stressed that employee engagement substantially affects worker’s efficiency and retention
of talents; the author further pointed out that dedicated workers perform 20% better and
are also 87% more averse to quit. Rana, & Malik, (2017) opined that large amounts of
employee engagement happen when workers are involved with, focused on, eager, and
energetic about their work, and all things considered, those employees who have high
amounts of engagement are not anticipated to quit, though, those disengaged are probably
going to do so. Based on these, this paper infers that:
3.6. Theoretical literature Review
Long-term health and success of any organization depends upon the retention of key
employees. To a great extent customer satisfaction, organizational performance in terms
of increased sales, satisfied colleagues and reporting staff, effective succession planning
etc., is dependent upon the ability to retain the best employees in any organization.
Encouraging employees to remain in the organization for a long period of time can be
termed as employee retention. It is a process in which the employees are encouraged to
remain with the organization for the maximum period of time or until the completion of
the project (Maertz & Campion 1998).
In this review of literature the theoretical and practical aspects are collected from
different sources such as related books to employee retention, research papers, annual
report documents and internet services. Employees in Ethiopian financial institutions
switch working places primarily in search of better pays and benefit packages. This was
aggravated as Banks, particularly public-owned ones, didn’t put in place effective staff
retention strategies. However, several of these Banks have recently started to offer
attractive salary and benefit packages. The move is helping the Banks to stay
competitive.
The high increase of salaries and benefit packages was, however, becoming a critical
challenge for new entrants. These Banks have two options: offering higher, often
exaggerated salaries and benefits to the few skilled professionals in the industry or devote
resources to train fresh graduates.
Jang, (2013) echoing Barney (1991) who presented and developed core tenets of RBV,
suggested that an organization may sustain competitive advantage for a longer period
when its resources are valuable, uncommon, inimitable, and not substitutable. Kubui
(2015), agreeing with Jang (2013) stated that the Resource Based view postulates that
human and organizational resources above other forms of resources, physical, financial or
technical, can provide an organization with a sustainable competitive advantage
because they are exceptionally difficult to imitate. In the context of this study RBV
showed that great importance need to be attached to recruitment and selection of
employees that are valuable, uncommon, inimitable, and not substitutable and their
retention, if a firm is to achieve competitive advantage over their competitors,
(Muhammad, Rosman, Altaf, & Fadillah, 2019).

2.7. Herzberg’s motivation-hygiene theory

Herzberg believes that there are two groups of factors that enhance motivation. They are
motivators and hygiene factors. Motivators are associated with good feelings felt by
workers and are generally related to job content, whereas bad feelings related to job
contexts are associated with hygiene factors. Motivator factors are intrinsic to the task
itself; these include responsibility, accomplishment, recognition, the chance of personal
growth and advancement, and the work itself. Hygiene factors include personal life,
6
 interpersonal relationships, work conditions, salary, supervision, administration, job
security, status and company policy (Herzberg, 1966). The motivational-hygiene model
suggests that motivation of employees is accomplished when they are presented with
seemly difficult but pleasurable work that gives them the opportunity to register some
achievements, growths, and exhibit responsibility and advancement in the firm (Dartey-
Baah & Amoako, 2011). It is a general belief that a combination of motivation and
hygiene factors leads to employee job satisfaction. When companies achieve employee
job satisfaction, employees equip themselves with a high level of confidence that
influence them to stay longer, become deeply engaged in the business, suggest channels
of enhancing the firm’s services or products, and to put in extra effort to satisfy the
customers and stakeholders (Loiseau, 2011; Afsana Afrin, & Tarannum, 2016). In this
context, the Herzberg’s motivation-hygiene theory explains the relationship between
employee engagement and retention.

3.2.3. Sampling Techniques

In the process of carrying out this research, purposive and convenience sampling is use
and questionnaires are distributed tototal population 34 selected employees from the
Awash Bank Mizan branch. After the samples of branches have been determined, the
researcher used the following sample size determination formula to determine the
sample size of the population in four branches and head office. The formula was
developed by Taro Yamane (1967). It is calculated as follows:
N=n÷ (1+ (n×e)). n-Where sample size
N= 34÷ (1+ (34×0.04)). N,target population
N=33.5 employees e,precision level
3.4. Data Gathering Instrument
The main tool/ instrument of the study were a questionnaire. Data collection method
that is used in this research is questionnaire (close-ended) and interview questions were
developed for the concerned human resource management department at Mizan Branch
office and branch managers. The variables were measured using Likert scale with
five response categories (strongly disagree, disagree, neutral, agree and strongly
agree). “The Likert scale method will preferred to make questions interesting
to respondents and there by enhance their cooperation, ultimately to ensure
maximum response rate” (Robson Colin, 2002).

3.5. Procedure of Data Collection

The researcher sought permission from Awash Bank Mizan Branch, permission for the
survey was granted by director human resource management (HRMD). After
permission is granted, the questionnaires are being distributed to the respondents.
3.7. Method of data analysis
The collected data were entered into SPSS version 20.0 and analyzed by using
descriptive statistics. In this study, descriptive analysis was chosen because of
its simplicity and clarity to draw inferences. Mean, standard deviation,
percentages, frequency and tables were used for the analysis of the collected data and
triangulated with an interview.

7
3.8. Ethical Considerations
Ethical issues confront every researcher who embarks on a study involving humans as
subjects. Pratt (2006) stated that, the main ethical debates in qualitative research revolve
around the tensions between covert and overt research, and between the public’s right to
know and the subject’s right to privacy. The most important ethical agreement that prevail
in social research includes harm to participants, confidentiality and deception. These
concerns were dealt with in the course of data collection. This study has fully considered
the ethical matters of the organization.

CHAPTER THREE
3.1. Research design and methodology
This chapter presents details of the research design and methodology. This includes the
research design, population of the study, sample size and sampling technique, data
source and collection method, procedure of data collection, questionnaire and
reliability test, and method of data analysis.
Finally, the respondents are randomly chosen from each Employee. The questionnaire
used in this study was vetted by researchers who are experts in the field to ensure its
validity, considering its content, criterion, construct and readability in order to comply
with the research objectives.

3.1. Research Design and Approaches

A research design is the program that guides the researchers in process of collecting,
analyzing and interpreting the data. Descriptive study design using quantitative and
qualitative method was used to analyze for data collected from employees of the Awash
Bank. The reason was to ensure effectiveness of the research process as the findings of
the qualitative data enhance the findings of quantitative one and the vice versa. The
reason behind using descriptive study design is because the researcher is interested
in describing the existing situation under the study. This study used descriptive
analysis that describes the selection and recruitment on employee retention practice that
leads to employee’s satisfaction.
3.2. Source of Data
A. Primary Data
According to Kothari (2004), primary data are fresh data that are gathered for the first
time and thus happened to be original in character. Primary data of the study is
information collected from employees of the Bank.
Questionnaires that have closed ended question are prepared and deliver to employees.
According to Walonick, (1993), the Questionnaire is one of the most popular methods of
collecting data conduction in scholarly research. It provides convenient way of gathering
information from a total target population. As a result, questionnaire will be used to
gather information through quantitative and qualitative data.
8
B. Secondary data
The secondary data was collected from different sources such as, websites,
books, annual reports, different relevant journals, periodicals released by the Bank and
articles.
3.3. Research design
The study would be conducted in AwasBank Bonga branch. The research going to obtain
the required data and appropriate data would be needed to accomplish objective of the
study and to carry the study descriptive research would be selected to conduct the
research.
3.4. Target population
The total population of the organization is 36 employees so it is necessary to collect
sufficient information by using total population. Therefore the researcher would use the
censes method. Because it is the appropriate sampling techniques to maintain the
reliability of the study. Total 34 employees would be selected as respondent for this study.

9
 CHAPTER FOUR

RESULT AND DISCUSSION

4.1. Introduction
This chapter deals with data presentation, analysis and interpretation. Thus, demographic
characteristics of the respondents and data obtained on the practices of recruitment and
selection is presented and interpreted .Among the distributed 34 questioners for Employee;
all the questionnaires returned from employees. All in all 100% questionnaires were returned.

4.2. Demographic Characteristics of the Respondents

This section describes the frequency distribution of respondents’ personal or demographic
characteristics. Thus, Demographic characteristics like gender, age, marital status,
education level, working experience and job category described by using frequency
andpercentage.

Gender

37.40%
Male
62.60%
Female

Figure1: Gender of employee

Source: Own Survey, 2015

10
The above pie chart shows the summary of respondents’ demographic factors.62.60% is
male and the rest 37.40% is female. Based on the information, the researcher can infer that
the majority of respondents are male. This implies that the organization needs to encourage
female to give equal employee opportunity.

70

60

50

40
Frequency
30
valid percent
20

10

0
21-30 31-40 41-50

Figure2: Age of employee

Source: Own Survey, 2015

The graph of age distribution of the respondents, As the result the greatest number, 62.60%
of the respondents are in their 21 to 30 age group, followed by respondents aged 31 to 40
which is equal to 35.40 % and the least group found age group 41-50 which is 2% of the
respondents. Therefore, almost 63% of current employees of Awash Bank are less than age
group of 30 years. This shows that most of the respondents are in the productive age so that
they can contribute a lot for the success of the Institution.
Table 1: Frequency Distribution-Demographic Characteristic

Percentage
No Item Measurement Freq. Valid % Cumulative %

Diploma 2
1 Educational Degree 28
Qualification Master 4
Total 34 100
Working Less than 5 year 12 42.40 42.40
Experience 6 – 10 years 10 41.40 83.80
2 11 – 15 years 10 14.10 98
More than 15 years 2 2 100
Total 34 100

11
 Percentage
No Item Measurement Freq.
Valid % Cumulative %
Management 2 8.10 8.10

3 Job Category Supervisor 4 28.30 36.40

Employee 22 63.60 100.0
Total 34 100 --
Source: Own Survey, 2015

Item 1 of the table is concerning the educational qualification of the respondents.

Consequently, the largest numbers of the respondents are degree holders which are 80.8%
of the respondents followed by diploma holder 9.10% and 10.10% of Masters Holders.
From this, one can easily understand that most employees of AB were well educated and
can contribute a lot for the success of the organization.
Item 2 of the table is regarding the working experience or service years of the respondents
in the organizations. It indicates that 42.40% of respondents have been working in the
organizations for less than 5 years, 41.40% for 6 to 10 years, 14.10% for 11 to 15 years and
only 2.0% of respondents have been working for greater than 15 years. Therefore, the
majority of the respondents have been working for less than five years in the organizations
this implies that it incurs costs for new employee recruitment.
Item 3 of the table is regarding the job category of the respondents in the organization. It
indicates that 63.60% of the respondents are employees where as 28.30% supervisors and
the rest 8.10% are managements this implies that Awash bank used proper hierarchy
structure to manage the activity.
4.3 Data Analysis Pertaining to the Study
This section is the data analysis pertaining to the study it presents the frequency distribution
of respondents’ opinion on different thematic area. The data obtained from questionnaire
and interview. In addition, the organization`s staff selection policy would be analyzed with
reference to the best practices and cohesive with the analysis of questionnaire and interview
data. Each of them described by using frequency and percentage as captioned below.

4.3.1 Recruitment and Selection Practice

In this section responses obtained on the general consideration of recruitment
and selection were presented and interpreted.

12
 Table 2: Recruitment and Selection Practices

No Statements Strongly Agree Neutral Disagree Strongly Total

Agree Disagree
F % F % F % F % F % F %
Is there Recruitment and
Selection problem on 4 11.1 6 22.2 8 24.2 6 16.2 10 26.30 34 100
1 Retention of Employees at AB

2 Vacant positions
usually filled by recruiting a 4 7.10 6 30.3 8 32.3 6 18.2 10 12.1 34 100
new employee.

3 HR Department strictly follows

the policy and procedure in
5 9.10 6 14.1 8 16.2 4 29.3 11 31.30 34 100
relation to staff .
4 The selection procedure is
nondiscriminatory regarding
4 11.1 6 19.2 8 18.2 6 24.2 10 27.30 34 100
gender, appearance, race, and
political affiliation.
5 The need for new
recruitment always comes from 13.1 29.3 34.3 11.1 12.10
6 6 8 7 12 34 100
human resources planning.
6 AB performs job
specification, and job
3 10.1 6 17.2 8 21.2 6 32.3 10 19.2 34 100
description before advertising
vacancies
Source: Own Survey, 2015
As shown in the above table the first statement is regarding AB has clear policy and
procedure of recruitment and selection majority of the respondents which is 26.30% of the
them are strongly disagree about there is policy and procedure of recruitment and selection,
followed by 24.2 % and 22.2 % of respondents who are not sure about it and agree
respectively. On the other hand 16.2% of the respondents disagree and 11.10% of them strongly agree that
AB has a clear policy. Hence, from this figure the researcher can conclude that the majority of the
respondents are not aware whether AB has clear recruitment and selection policy or not. From interview
with the staff members under the Human Resources unit that AB has clear policy which is practiced by
Human Resources manual under article 3. Thus, the researcher can say that AB has policy which the staff
members are not aware of it, this can be an indication of lack of transparency in recruitment and selection
practices, and in addition, the necessary periodic refreshment trainings about the internal policy and
procedure of the organization are not being given.

13
 The second statement is on the factor vacant positions usually filled by recruiting external employee
which is raised to understand whether especial consideration is given for internal staff members or not.
Accordingly, the above summery table shows majority of the respondents 32.3% which are not sure
followed by about it 30.3% of them are Agree and
18.2% of them who are disagree. On the contrary, 12.10% of the respondents strongly disagree and 7.10 %
of them strongly agree about it. Therefore, from this we can conclude that AB doesn`t give priority for its
internal staff members, this might create a firm may incur both short and long run costs.in the short run,
morale may degenerate; in the long run, firms with a reputation for consistent neglect of in-house
talent may find it difficult to attract new employees and to retain experienced ones.

The third statement is about whether HR Department strictly follows the Human Resources Policy and
Procedure in relation to staff selection practice or not. Accordingly, as indicated in the above table the
respondents which are 31.30 % and 29.30% of respondents who are strongly disagree and disagree about it
followed by 16.20% and 14.10 % are neutral and agree. On the other hand there are 9.10 are respondents
who strongly agree that the unit follows the policy and procedure. Here it can be conclude that the
majority of the respondents are not aware about the policy or they are not satisfied by the HR unit activity
inline the proper practicing of the staff selection activities, possible reasons for this dissatisfaction are lack
of consistency at implementation, lack of credibility, lack of transparent procedure at every step and
the like.. From interview with the HR staff members it was learned that AB has clear policy of staff
selection which is being practiced. However, there might be very rare inconstancy case due to work
overload of the unit, in relation to this it was also mentioned that the staff members in the human resources
unit are

always engaged with the routine and unplanned activities, that couldn’t allow them to do

the recruitment and selection practice strategically.

The fourth statement shows the summary of respondents’ response on the factor the selection procedure is
nondiscriminatory regarding gender, appearance, race, political affiliation. Accordingly, majority of the
respondents, which is 27.30%, strongly disagree that The selection procedure is nondiscriminatory
followed by 24.20% respondents who are disagree about it and 19.20 and 18.20% respondents are agree
and not sure respectively. And at last 11.10% respondents strongly agree. Therefore, based on the
information the researcher can conclude that the selection procedure is discriminatory regarding gender,
appearance, race, political affiliation. This lead to an organization can’t get right candidates.
However, in the interview accordingly to human resource manual equal opportunity for employment
shall be provide to all candidates under article 1.4 and systematically favor women and minorities
in hiring and promotion decisions.
The fifth statement is summary of respondents’ response on the factor the source for new recruitment was
also tried to be investigated with statement the need for new recruitment always comes from Human
Resources Planning. Accordingly, Majority of the respondents
34.3% of them not sure about the case followed by 29.3% of the respondents who are agree about it and
13.10% of the respondents who strongly agree. On the other hand, there are

14
12.10% and 11.10% of respondents who disagree and strongly disagree. And also from interview they
believe recruitment is initiated by HRP this implies AB lead to have a strategic recruitment and selection
policies.
The last statement about AB performs job description, and job specification. Accordingly, majority of the
respondents 32.30% of them are disagree about it and followed by 21.2% of the respondents who are not sure
and 19.20 % of them who strongly disagree. 17.20 of the respondent are agree .on the other hand 10.10% of
the respondents are strongly agree Therefore, form this we can understand that AB doesn`t consistently
perform job description and job specification before advertising vacancies this implies it difficult to fix
employee duties and responsibilities. 4.3.2 Vacancy Advertisement
Vacancy advertisements may be the first impression of a company for many people, and the
first impression the firm makes goes a long way to determining interest in the job opening
being advertised. Vacancy advertisements typically should have a uniform layout and contain
the major elements: In this section responses obtained on the AB vacancy advertisement
practices presented and interpreted.
Table 3: Vacancy Advertisement Practices

No Statements Strongly Agree Neutral Disagree Strongly Total

Agree disagree
F % F % F % F % F % F %
1 The vacancy 3 11.1 16 41.40 4 13.10 6 21.20 4 13.10 34 100
advertisement
provides sufficient
information about the
2 job.
The media used for 4 16.2 15 33.3 5 13.10 6 21.20 5 13.10 34 100
the job vacancy
advertisement is well
known and have large
3 coverage.
The application 6 9.10 14 28.3 4 13.10 8 21.20 5 13.10 34 100
process for open
vacancies is very
easy, Efficient and
courteous for all
4 applicants.
The most of the time 4 17.2 14 34.30 6 13.10 8 21.20 6 13.10 34 100
there is enough
number of applicants
pool from vacancy
advertisements

5 The vacancy 3 12.1 12 28.30 8 14.10 6 20.20 6 13.10 34 100

advertisement has its
own consistent format
which is applicable to
all type of job
Source:vacancies
Own Survey, 2015
15
The first statement shows the summary of respondents’ response on the factor the vacancy
advertisement provides sufficient information about the job. Accordingly, out of 99
respondents’ majority of the respondents, which is 41.40%, agree that the vacancy
advertisement provides sufficient information about the job followed by 21.20%
respondents disagree about it and 13.10% respondents strongly disagree and not sure about it
that the vacancy provides sufficient information and 11.10% of the respondent agree.
Therefore, based on the information we can conclude that the vacancy advertisement of AB
has provided sufficient information about the job and it contains the major elements. Also it is
mentioned under human resource article 2.2. This lead to the candidate can get full
information about vacancy and it’s easy for the organization when knows the candidates
before they apply.
The second item is the summary of respondents’ response on the factor the Medias that are
used for the job vacancy advertisement are well known and have large coverage. Accordingly,
out of 99 respondents those who are agree which are 33.3% respondents for each which holds
the majority number from the respondents, followed by 20.20% respondents who are not sure
about the case and Those who are strongly agree and disagree have the same number which is
16.20 respondents and at last there are only 14.10% respondents who strongly disagree.
Therefore, from the researcher can conclude that the Medias that are used for the vacancy are
well known and have large coverage so that AB has the possibility to get large number of
applicant’s pool from it vacancy advertisement. And also from interview they have the same
idea.
The third statement is on the summary of respondents’ response on the application process for
open vacancies is very easy, efficient and courteous for the candidates. Consequently, out of
99 respondent’s majority of them, 34.30 % not sure that the application process is very easy,
efficient and courteous for the applicants followed by 28.30 % respondents who are agree
about the case and 17.2% respondents who disagree and 11.10% and9.10% respondents are
strong disagree and strongly agree. Hence, from this we can also conclude that the application
process of AB is not easy, efficient and courteous for the candidates/ Applicants. Therefore,
since every willing applicant cannot summit his/ her application easily it can difficult for
applicants and for organization may not get qualified candidates
The fourth statement is about the application pool. Consequently, for the point most of the
time there is enough number of applicants pool from vacancy advertisements majority of
them, 34.30%, agree that there is enough number of applicants pool from vacancy
advertisement, followed by 29.30% respondents who are not sure about the case, and
17.20% respondents who are strongly agree finally there are also 12.10% respondents who are
disagree and 7.10 % respondents are strongly disagree. Hence, from this the researcher can
also conclude that most of the time there is enough number of applicants pool from vacancy
advertisements therefore, has no as such problem in having enough number of applicants pool
for one position. from interview , the staff attraction mechanisms that AB use its image to
attract new staff that is AB is the leading private bank in terms of number of branches
,capital, profit and revenue that help to attract employees.

16
 The last statement is on the factor, the vacancy advertisement has its own consistent format
which is applicable to all type of job vacancies. Consequently, out of 99 respondents
majority of them, 31.3%, are not sure about the format whereas 28.30% agree and 18.20 %
of them disagree and 12.10% are respondents who are strongly agree and the last 10.10%
are strongly disagree that the vacancy advertisement doesn`t have a consistent format.
Hence, from this the researcher can conclude that even though AB has a format for its
vacancy advertisement they may not be consistently used or it is not applicable to all type
of positions this imply if it’s not easy for candidates, its more critical to organizational
success whilst those without qualifications employee.

4.3.3 Selection Test

Testing is an important device of screening employees for further selection, accordingly in
this section responses obtained on the selection test practice were presented and interpreted.
Table 4: Selection Test Practices

No Statements Strongly Agree Neutral Disagree Strongly Total

Agree Disagree
F % F % F % F % F % F %
1 The selection test 5 11.1 14 42.40 6 13.10 6 21.20 6 13.10 34 100
were relevant to the job
you have applied at your
first employment in AB.

2 The selection tests 4 10.1 16 44.40 6 13.10 6 20.20 5 10.10 34 100

were administered strictly
not to create room for
irregularities.
3 Selection questions 6 12.1 14 41.40 6 13.10 5 21.20 5 13.10 34 100
were appropriate to
measure the knowledge,
skills and abilities that are
required for the open
position.
Source: Own
Survey, 2015
As shown in the above table the first statement is about the relevancy of the
applied selection test on the first employment. Accordingly, summary of
respondents’ response on the factor that the selection tastes were relevant to the
job you have applied at your first employment in AB. Shows out of 99
respondent’s majority of them, 31.3%, are agree about case followed by 24.2%
who are not sure about it, and 22.20% who disagree about it and

17
13.10% who strongly agree on the other hand finally there are also 9.10% respondents who
strongly disagree. Hence, from this we can also conclude that most of the time selection
tests are relevant to the job this implies AB can get a qualified employee for one position.
The second statement is on the factor that the selection tests were administered strictly not to
create room for irregularities. Accordingly, majority of the respondents 41.40 % who are not
sure about it and followed by 24.20 % of the respondents who agree and 23.20% who
disagree and 8.10% respondents who are strongly disagree. On the other hand, there are 3
% of respondents who strongly agree. From this we can understand that there is gap in the test
administration practice of AB which needs strict attention.
The last statement is on the appropriateness of selection questions to measure knowledge,
skills and abilities of open positions. Accordingly, respondents’ response on the factor that
Selection questions were appropriate to measure the knowledge, skills and abilities that are
required for the open position indicates out of 99 respondents, 32.3%, are not sure about case
followed by 23.20% who are agree about it, and 22.20% who disagree about it and
14.10 % respondent who strongly disagree .On the other hand, there are also 8.10%
respondents who agree. Hence, from this we can conclude that selection questions are not
appropriate to measure the knowledge, skills and abilities that are required for the open
position this implies it’s difficult to choose the right candidates.
Table 5: Interview Practice

No Statements Strongly Agree Neutral Disagree Strongly Total

agree
Disagree
F % F % F % F % F % F %
1 There is always 4 14.10 16 25.3 5 29.3 6 19.20 6 12.10 34 100
structured interview to address
consistent question for each
candidates.
2 You were asked about 6 10.10 11 37.40 5 24.20 6 19.20 6 9.10 34 100
the knowledge, experience and
characteristics, interest that are
relevant to the open position.
3 The type of interview 4 9.10 14 19.20 6 17.20 6 28.30 8 26.30 34 100
was group interview when
you were recruited.

4 The interview was very 5 13.10 16 30.30 8 26.30 6 15.20 8 15.20 34 100
interactive and you were
given a fair and thorough
hearing on your first interview.
Source: Own Survey, 2015

18
4.3.4 Conduction of Selection Interview
This Section responses obtained on AB interview practice were presented and
interpreted.

The first statement Accordingly, the summary of respondents’ response on the factor there is
always interview protocol/Structured interview to address consistent question for each
candidates shows out of 99 respondents, 29.3%, are not sure about the case followed by
25.3% respondents who are agree about it, and 19.20% who are disagree about it and

14.10% respondents who are strongly agree .On the other hand, there are also 12.10%
respondents who strongly disagree. Hence, from this we can conclude that most of the time
is no structured interview which is able to address consistent question for each candidates.
This implies it’s difficult to assess applicants for Awash Bank and its inconsistency.

The Second statement is on respondents’ response on the factor you were asked about the
knowledge, experience and characteristics, interest that are relevant to the open position.
Consequently, out of 99 respondents, 37.40%, are agree about case followed by 24.20%
respondents who are not sure about it, and 19.20% who disagree about it and 10.10% who
strongly agree . On the other hand, there are also 9.10% respondents who strongly
disagree. Hence, from this the researcher can conclude the interview making the
interviewee at ease and may get potential candidates.

The Third statement is on the type of interview, to identify whether it is group interview or
one to one. Accordingly, respondents’ response on the factor type of interview was group
interview when you were recruited shows out of 99 respondents, 28.30 % and 26.30% of
respondents who are disagree and strongly disagree respectively followed by 19.20% of the
respondents who are agree and 17.20% of the respondent who are not sure about it. On the
other hand 9.10% of the respondents strongly agree. Therefore from this we can conclude
that the interview is not group interview this implies less formal and where probing
question are forward.
The last statement is about the interview environment, accordingly, summery of
respondents’ response on the factor the interview was very interactive and you were given a
fair and thorough hearing on your first interview indicates out of 99 respondents, majority
of the respondents, 30.3%, agreed that the interview was very interactive followed by 26.3
% of the respondents who are not sure and those who are disagree and strongly disagree
have the same number which is 15.20% respondents. On the other hand 13.10% of
responds who strongly agree. From this the researcher can conclude that most of the time
the interview creates friendly environment for interviewees. This imply it
create more effective your recruitment process.

19
4.3.5 Pre-Employment Checkup
This section responses obtained on Pre-employment practice were presented and
interpreted.
Table 6: Pre-employment checkup practices

No Statements Strongly agree Neutral disagree Strongly Total

agree disagree
F % F % F % F % F % F %
1 Minimum three 5 6.10 11 26.3 6 28.3 6 22.2 6 17.2 34 100

reference were
checked when you
were recruited.

2 You were 5 43.4 11 26.3 6 17.2 6 5.10 6 8.10 34 100

requested to go
through medical
checkup when you
were recruited

Source: Own Survey, 2015

As indicated in the above table, the first statement shows the summary of respondents’
response on the factor minimum three references were checked when you were recruited.
Consequently, out of 34 respondents, 28.3%, are not sure about case followed by 26.3%
respondents who are agree about it, and 22.20% who disagree about it and
17.20%respondentes who are strongly disagree . On the other hand, there are also 6.10%
respondents who strongly agree. Hence, from this the researcher can conclude that most of
the time reference is not consistently checked that lead to may not get further information
that verify accuracy and objectivity of applicants credentials and claims. However from
interview with HR representative specify that most of the time references checked for high
level position.
The second statement is regarding the entry on duty medical checkup, accordingly as shows
in the above summary of respondents’ response on the factor you were informed to go
through Medical Checkup when you were recruited indicates out of 99
respondents, majority of the respondents which is 43.40% strongly agree followed by
26.3 % of respondents who are agree about it and 17.20%and 8.10% respondent are not
sure about it and strongly disagree about it respectively on the other hand 5.10% of
respondents who disagree. Accordingly form this figure the researcher understand
that AB is conducting entry on duty medical assessment when new employees are
recruited. Also AB article 2.8b medical examination results and police report obtained
during recruitment phase. This implies the employee is physically and mentally capable
to perform the work. 20
4.3.6 Orientation and Induction
Table 7: Selection Test Practices

No Statements Strongly Agree Neutral Disagree Strongly Total

Agree Disagree
F % F % F % F % F % F %
1 You were informed 4 18.2 10 30.3 12 36.40 5 10.10 3 5.10 34 100
about the vision,
mission, and goal
of AB
2 You were 5 15.2 12 30.3 7 28.20 6 18.2 4 8.10 34 100
introduced about
your job
immediately after
you were selected. 13.9 10 36.6 6 24.8 17.8 5
3 You were 4 8 6 34 100
introduced to your
co-worker in the
AB.
Source: Own Survey, 2015
The first statement Accordingly, the summary of respondents’ response on the You were
informed about the vision, mission, and goal of AB shows out of 99 respondents, 36.40%, are
not sure about the case followed by 30.3% respondents who are agree about it, and
18.20% who are strongly agree about it and 10.10% respondents who are disagree .On the
other hand, there are also 5.10% respondents who strongly disagree. Hence, from this we can
conclude it implies the practice of orienting new recruits about the vision, mission and goal
tends to be not effective this lead to disruption and create recurrent cost such as the costs of
obtaining replacements, induction cost (Armstrong,2009)
The second statement Accordingly, the summary of respondents’ response on the You were introduced
about your job immediately after you were selected shows out of 99 respondents, 30.3%, are agree
about the case followed by 28.20% respondents who are not sure about it, and 18.20% who are disagree
about it and 15.20% respondents who are strongly agree. On the other hand, there are 8.10%
respondents who strongly disagree hence, from this we can conclude it the majority of respondents,
showed that the introduction about their job immediately this obtain effective output from the
new employee in the shortest possible time.( Armstrong,2009)
The last statement Accordingly, the summary of respondents’ response on the You were introduced to
your co-worker in the AB, shows out of 99 respondents, 36.6%, are agree about the case followed by
24.80% respondents who are not sure about it, and 17.80% who are disagree about it and 13.9%
respondents who are strongly agree. On the other hand, there are 5% respondents who strongly disagree
hence, from this we can conclude it the majority of respondents, introduce to their co-workers. Therefore,
this establishes quickly a favorable attitude to the organization in the mind of new employees.

21
4.3.8 Challenges
A common problem in recruitment and selection is poor HR planning .the key goal of HR
planning to get the right number of people with right skills, experience and competencies in
the right jobs at the right cost .detailed and robust recruitment and selection policies, such as
recruitment and selection procedures, assessing criteria, talents auditing and processing the
information about the labor market are important in recruiting and deploying
appropriate employees at the right time. The major challenge facing in AB Mizan Branch in
its recruiting and selection practice is lack of key talents in the job market for specialized area
like in consultant and information technology area.
There are various factors which affect recruitment and selection practices of any organization.
For that reason, responses obtained from the challenges / factors affecting staff selection
practices are presented.
It was learnt that the unit has been understaffed since long period of time and they consider
this as one of the internal challenge that hinder them for consistency. From interview with the
staff members under the Human Resources unit it was learned that AB has clear policy. Thus,
we can say that AB has policy which the staff members are not aware of it; this can be an
indication of lack of transparency in recruitment and selection practices and a major challenge
for Awash Bank.
In addition, the bank faces challenges in acquiring competent candidates; and also faces delays
with respect to the standard time of recruiting new employees when it uses recruitment
agencies. Shortage of manpower in the market for some specific positions like consultants,
lack of qualified and experienced peoples in the market for higher level posts, this leads to
spend high cost for consultancy and for the employee training program. And last government
policy (National Bank of Ethiopia) restricted different policy are the challenges which
are discovered. According to the human resource directorate head the bank faces
challenges in finding competent employees and recruitment agencies delay the standard time
to recruitment and selection applicants, which in turn affects organizations performance.

22
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
This chapter presents the summary of the results and the findings based on the analysis
conducted throughout the entire study. This research work has attempted to study the
practices of Recruitment and Selection on Retention of Employees at AB Miza Branc.
Hence, based on the data discussions, analysis and interpretation the following
summary of major findings, conclusion and recommendation are presented here under.

5.2 Summary of Major Findings

The main aim of this study is to examine the practice of Recruitment and Selection on
Retention of Employees at AB Mizan Branch. Based on that the following research results are
found.
The study revealed that majority(6-8) of respondents were not aware of formal recruitment
and selection policy at Awash Bank and AB doesn’t give priority for its internal staff
members in its recruitment and selection process as 32.3%of respondent confirmed.
The analysis realized that of 31.30% respondents were of the opinion AB Mizan Branc has
clear policy of staff selection which is being practiced. And even though the HR
representative specify that there is no discrimination in AB there is a discriminatory
regarding gender, race and political, as confirmed by majority (31.30%) of the respondent.
recruitment is initiated by HRM However AB Mizan Branch doesn`t consistently perform
job analysis and job specification before advertising vacancies, as confirmed by majority
(32.3%) of the respondent.
The vacancy advertisement of AB is found effective which presents all the necessary
information about the vacant post, as confirmed by majority (41.40%).The analysis
realized that of 33.3% respondents were of the opinion Medias that are used for the
vacancy are well known and have large coverage so that AB has the possibility to get large
number of applicant’s pool from it vacancy advertisement.
The human resource directorate also mentioned on the interview that the job advertisement
will be handed over to the selected press agency (newspapers) so the organization used
limited source.
The interview type was not group interview, as confirmed by majority (28.30%). But, as
majority (37.40%) respondent that most of the time the interview questions are not structured
one which creates inconsistency. However, interview was effective that include relevant
KSA`s as confirmed majority (37.40%) of respondent and the analysis realized that of
respondents were of (30.3%) the opinion create friendly environment for interviewees.

23
AB is conducting entry on duty medical assessment when new employees are recruited as
43.40% of respondent confirmed. However, most of respondent (28.3%) agreed reference is
not consistently checked in the Awash bank. In addition to the respondent result the interview
indicates reference checked for higher level position only.
Awash bank introduce about their job immediately and with their co-worker this obtains
effective output as 30.3% of respondent confirmed.
From internal challenges, AB has policy which the staff members are not aware of it; this can
be an indication of lack of transparency in recruitment and selection practices From external
challenges ,shortage of manpower in the market for some specific positions like consultants,
lack of qualified and experienced peoples in the market for higher level posts and In addition,
the bank faces challenges in acquiring competent candidates; and also faces delays with
respect to the standard time of recruiting new employees when it uses recruitment agencies.
And last government policy (National Bank of Ethiopia) restricted different policy.
5.3 Conclusions
The following conclusions are drawn based on the basic research questions and the set
research objective.
As per the findings of the study, it is vividly illustrated that there indeed exists a procedure
that guides the process of recruitment and selection in Awash bank. Nevertheless, there are
areas of improvement with regard to its proper implementation. Furthermore, it was
discovered that the recruitment and selection procedure itself is not revised as often as it
should be. In addition, the bank’s recruitment and selection procedure does not show the
banks strength in attracting competent candidates, despites employees are attracted on the
basis of different factors this implies it difficult to get best candidate.
The study found out that the bank’s recruitment strategy is not diversified as it should be; it
uses only local newspapers as a channel to announce vacancies. Moreover, the tests do not
integrate the various types of employment tests. Besides, the bank also needs to revise the job
description as frequently as needed. The recruitment and selection document of the bank
does not include evaluation of the whole recruitment and selection procedure. In addition, the
bank faces challenges in acquiring competent candidates; and also faces delays with
respect to the standard time of recruiting new employees when it uses recruitment agencies.
The recruitment and selection practices of AB are not comprehensive enough to include all the
accepted staff selection principles. All the staff selection techniques and procedures are not
pursued at each stage which limits the capability to recruit best candidate and ensure best
employer brand.

24
The recruitment and selection on retention of Employees fails to include significant steps
like selection test and feedback to unsuccessful candidates. In addition, professional
reference checks are being done randomly for selected positions, most of the time for
higher level positions. This leads to may not get further information that verify
accuracy and objectivity of applicants’ credentials and claims. The organization doesn’t
use different option for advertisement, it is limited. This implies that the other method
were not effective that lead to may not get large pool of applicants for best candidates.
The Recruitment and Selection on Retention of Employees practice in Awash bank is
challenging, Awash Bank has policy which the staff members are not aware of it, which
shows the lack of transparency and lack of refreshment trainings for staff members. The
shortage of manpower in the market for some specific positions like consultants, lack of
qualified and experienced peoples in the market for higher level posts, this leads to spend
high cost for consultancy and for the employee training program. In addition, the bank faces
challenges in acquiring competent candidates; and also faces delays with respect to the
standard time of recruiting new employees when it uses recruitment agencies. And last
government policy (National Bank of Ethiopia) restricted different policy are the challenges
which are discovered. It has challenges the organization not to be flexible.
5.4 Recommendations
In view of the above conclusions drawn from the findings, the following recommendations
were made to contribute to the practices of recruitment and selection on retention of
Employees of AB Mizan Branch. The integral benefits of the identified recruitment and
selection practices cannot be overlooked; nevertheless, the following recommendations must
be well noted.
The selection practice of AB needs to be consistent with its selection policy and best
practices. The policy need to match to the accepted practices of staff selection and the
recruiting body has to follow the procedure firmly.
The staff selection policy of AB Mizan Branch need to include strategic objectives which
is not only aimed to select the best candidate but it need to be more strategic in building a
good employer brand, considering special group interest, and state the role of the institution as
equal opportunity employer.

25
References
Akila, R. (2012). A study on Employee Retention among Executives at BGR energy
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African Journal of Business Management Vol.3 (8), pp. 410-415, September, 2009,
Impact of motivation on employee retention. Ltd, Chennai. International Journal
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Allen, D.G. (2008).Retaining Talent employee
Armstrong, M. and Murlis Helen. (2004). Reward Management: Hand book for
remuneration strategy and practice, 5th ED, London
Arnold, H. J.; and Feldman, D. C. (1982), "A Multivariate Analysis of the
Determinants of
Job Turnover", Journal of Applied Psychology,
Ashford, S, Lee, C&Bobko, P. (1989).“Content, causes, and consequences of job
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Afsana, J., Afrin, F., & Tarannum, T. (2016). Effect of training on employee performance:
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Ahlowalia, S., Tiwary, D., & Jha, A. (2014) Employee engagement: a structured
theoretical review. The International Journal of Business & Management,
Aibieyi, S., & Henry, O.I. (2015) Talent management and employees retention in Nigerian
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Chitsaz-Isfahani, A., & Boustani, H. (2014) Effects of talent management on employee’s
retention: the mediate effect of organizational trust. International Journal of
Academic Research in Economics and Management Sciences,
Dartey-Baah, K., & Amoako, G.K. (2011). Application of Frederick Herzberg’s Two-
Factor theory in assessing and understanding employee motivation at work: a Ghanaian
Perspective. European Journal of Business and Management,
Das, B.l., & Baruah, M. (2013). Employee retention: a review of literature.
Journal of
Business and Management,
Donald, D.U. (2014). Talent management and human resource practices. International
Journal of Innovation and Applied Studies, 6(4),
Ekwoaba, J. O., Ikeije, U. U., & Ufoma, N. (2015) The impact of recruitment and selection
criteria on organizational performance. Global Journal of Human Resource Management,
Ezeali, B. O., & Esiagu, L. N. (2010) Public personnel management: Human capital
management strategy in the 12st century. Onitsha: Book Point Limited.
Govaerts, N., E. Kyndt, F. Dochy and H. Baert, (2011) Influence of learning and working
climate on the retention of talented employees. Journal Workplace Learning,
Hassan, S. (2016). Impact of HRM practices on employee’s performance. International
Journal of Academic Research in Accounting, Finance and Management Sciences,
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22. Herzberg, F. (1966) Work and the nature of man. Cleveland, OH: World Publishing
Company.
Iles, P., Chuai, X., & Preece, D. (2010) Talent Management and HRM in
Multinational
Companies in Beijing: Definitions, Differences and Drivers. Journal of World Business,
Jang, S.H (2013). The Offensive Framework of Resource Based View (RBV): Inhibiting Others
from Pursuing Their Own Values. Journal of Management and Strategy,
Khan, Z., Khan, A. S., & Khan, I. (2017). Impact of performance appraisal on employee's
performance including the moderating role of motivation: A survey of commercial banks in
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Ismail Khan, Khyber Pakhtunkhwa, Pakistan. Universal journal of industrial and business
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Karemu, K. G., Kachori, D., Josee, V. M., & Okibo, W. (2014) Critical analysis of talent
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Kenyatta national hospital. European Journal of Business and Management,

27
 APPENDEICES

Jimma University School Of Under

Graduate Studies Research Questionnaire
Questionnaire to be completed by employees of Awash Bank Mizan Branch

Dear respondents, the purpose of this study is for the completion of MBA
degree of Jimma University. Since your information is vital to undertake the
study as intended, I kindly request you to respond the questionnaire for the best
of your knowledge. I would like to assure you that the information provided will
be used for academic purpose and will be kept confidential. Thanks in advance
for your cooperation.
Name: Amanuel Tsgaye Phone:

Note: - No need of write your name

Part-I: Personal Data

Instruction: - Encircle the letter of your choice.

1. Gender
A. Male B. FEmale
2. Age
A. Less than 20 B. 21-30 C. 31-40 D. 41-50 E. More than 50
years
3. Education Level
A. Certificate B. Diploma C. Degree D. Masters
4. Work Experience
A. Less than 5 years B. 6-10 years C. 11- 15 years D. More than 15 years

5. Job category

28
 A. Management position B. Supervisor position C. Employee

Part-II: General Questions:

Instruction: - Put the [] mark in the box provided.
1. The following statement relates to the Recruitment and Selection on Retention of
Employees.
Please indicate your level of agreement/disagreement by ticking [√] in the box for your
exact feeling based on the scale below.
N.B:-
1= Strongly Agree 2= Agree 3= Neutral 4= Disagree 5= Strongly
Disagree
Scale
No. Statements on recruitment and selection practice 1 2 3 4 5
1.1 Is there Recruitment and Selection problem on Retention of
Employees at Awash Bank Mizan Branch.
1.2 Vacant positions usually filled by recruiting external employees
Human Resource Department strictly follows the policy and
1.3
procedure.
The selection procedure is nondiscriminatory regarding gender,
1.4
race, political affiliation etc.
The need for new recruitment always comes from Human
1.5
Resources Planning.
AIB performs job analysis (i.e. duties, responsibilities, skills
1.6 etc. required for a particular job) and job evaluation before
advertising vacancies.
Scale
No. Statements on vacancy advertisement. 1 2 3 4 5
The vacancy advertisement provides sufficient information
2.1
about the job.
The Media Used for the Job Vacancy Advertisement is well
2.2
known and has Large Coverage.
The application process for open vacancies is very easy,
2.3
efficient for the candidates.

29
 There is Enough Number of Applicants Pool from Vacancy
2.4
Advertisements.
The vacancy advertisement has its own consistent format which
2.5
is applicable to all type of job vacancies.
Scale
No. Statements on selection test 1 2 3 4 5
Selection test were relevant to the job you have applied at your
3.1
first employment in AIB.
The selection tests were administered strictly not to create
3.2
irregularities.
Selection questions were appropriate to measure the knowledge,
3.3
skills and abilities that are required for the open position.
Scale
No. Statements on selection interview 1 2 3 4 5
There Is Always Structured Interview to Address Consistent
4.1
Question For Each Candidates
You were asked about the knowledge, experience and
4.2
characteristics, interest that are relevant to the open position.
The Type of Interview Was Group Interview When You Were
4.3
Recruited.
The Interview was Very Interactive and You Were Given a Fair
4.4
and Thorough Hearing on Your First Interview
Scale
No. Statements on pre-employment checkups 1 2 3 4 5
Minimum three Reference were Checked when you were
5.1
Recruited.
You were requested to go through Medical Checkup when you
5.2
were recruited
Scale
Statements on orientation and induction 1 2 3 4 5
No.

6.1 You were informed about the vision, mission, and goal of AIB.

65
 You were introduced about your job immediately after you
6.2
were selected.
6.3 You were introduced to your co-worker in the AIB.
Scale
No. Statements on Selection Decision. 1 2 3 4 5
There is Always the Immediate Supervisor of the Recruit at the
7.1
time of Selection Decision
Selection Decision is Always Done Based on the Average /
7.2
Aggregate Result of the Selection Panel Members.

2. What are the major challenges that recruitment and selection problem on
retention of employees at Awash Bank Mizan Branch ?

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