FACTORS INFLUENCING THE RECRUITMENT AND SELECTION

PRACTICES IN MANUFACTURING SMEs IN MALAYSIA

SITI RASHIDAH BINTI ANIS

A thesis submitted in fulfilment of the

requirements for the award of
Professional Master In Business Administration

Universiti Teknologi Malaysia

SEPTEMBER 2022

1i
 I/We hereby declare that I/we have read this thesis and in my/our
opinion this thesis is sufficient in terms of scope and quality for the
award of Professional Master In Business Administration.

Signature :
Name of Supervisor : DR. LIM LEE PING

Acknowledgement by BESTPARTNER SDN. BHD.

Signature :

Name :

Date :

ii
I declare that this thesis entitled “ FACTORS INFLUENCING THE RECRUITMENT
AND SELECTION PRACTICES IN MANUFACTURING SMEs IN MALAYSIA ” is
the result of my own research
except as cited in the references.

Signature :
Name : SITI RASHIDAH BINTI ANIS
Date : 15 SEPTEMBER 2022

iii
 DEDICATION

I would like to dedicate a special thanks to my beloved family,

especially my parents and fellow friends for their endless help,

support and understanding during the completion of this project.

iv
 ABSTRACT

The goal of this research was to investigate the successful factors of recruiting and
selection in SME manufacturing organisations in order to attract suitable people in order to
sustain business profitability. The human capital hypothesis drove the analysis. Individuals
with expertise working in the Human Resource department, specifically in the recruiting
division, in the SME manufacturing business comprised the study's population. Data were
gathered from survey questionnaires delivered to specific respondents. Three dependent
factors, namely core competencies, job analysis, and recruitment alignment, were
investigated in conjunction with the independent variable, recruitment and selection. After
computation was done using goodness-of-fit G*Power software, a sample size of at least
89 individuals was needed. The purposive sampling method was chosen as the sampling
method for this research study. A cross-sectional, quantitative study was conducted for this
research study to determine whether the constructs such as core competencies, job analysis and
recruitment alignment were positively associated to recruitment and selection process. One of
the measurements of central tendency used for this research study are the mean. The
average or most frequent number in a data set is known as the mean, which is regarded as
the most widely used measure of central tendency. In this study, the researcher calculates
the population mean using a sample average. The application of the study's findings could
lead to good social change by providing manufacturing executives with effective tactics for
attracting competent people. The reliability of this study was evaluated using Cronbach's
Alpha and composite reliability. The process of utilizing statistical methods to summaries
or describe a set of data, known as descriptive analysis was performed for this study.
Methods of correlation and regression was performed to analyse the nature and strength of
relationships between different variables in this study.

Keywords: core competencies, job analysis, recruitment alignment, recruitment, selection

process, SMEs (Small and Medium Enterprises)

v
 ABSTRAK

Matlamat penyelidikan ini adalah untuk menyiasat faktor kejayaan pengambilan dan
pemilihan dalam organisasi pembuatan PKS untuk menarik orang yang sesuai bagi
mengekalkan keuntungan perniagaan. Hipotesis modal insan mendorong analisis. Individu
yang mempunyai kepakaran yang bekerja di jabatan Sumber Manusia, khususnya di
bahagian pengambilan, dalam perniagaan pembuatan PKS terdiri daripada populasi kajian.
Data dikumpul daripada soal selidik tinjauan yang dihantar kepada responden tertentu.
Tiga faktor bersandar, iaitu kecekapan teras, analisis pekerjaan, dan penjajaran
pengambilan, telah disiasat bersama dengan pembolehubah bebas, pengambilan dan
pemilihan. Selepas pengiraan dilakukan menggunakan perisian G*Power goodness-of-fit,
saiz sampel sekurang-kurangnya 89 individu diperlukan. Kaedah persampelan bertujuan
dipilih sebagai kaedah persampelan untuk kajian penyelidikan ini. Kajian keratan rentas,
kuantitatif telah dijalankan untuk kajian penyelidikan ini untuk menentukan sama ada
konstruk seperti kecekapan teras, analisis pekerjaan dan penjajaran pengambilan secara
positif dikaitkan dengan proses pengambilan dan pemilihan. Satu koleksi strategi
persampelan bukan kebarangkalian melibatkan pemilihan unit untuk sampel penyelidikan
berdasarkan pemilikan kualiti tertentu. Salah satu ukuran kecenderungan memusat yang
digunakan untuk kajian penyelidikan ini ialah min. Purata atau nombor paling kerap dalam
set data dikenali sebagai min, yang dianggap sebagai ukuran kecenderungan memusat yang
paling banyak digunakan. Dalam kajian ini, pengkaji mengira min populasi menggunakan
purata sampel. Aplikasi dapatan kajian boleh membawa kepada perubahan sosial yang baik
dengan menyediakan eksekutif pembuatan dengan taktik yang berkesan untuk menarik
orang yang cekap. Kebolehpercayaan kajian ini dinilai menggunakan Cronbach's Alpha
dan kebolehpercayaan komposit. Proses menggunakan kaedah statistik untuk
meringkaskan atau menerangkan satu set data, yang dikenali sebagai analisis deskriptif
telah dilakukan untuk kajian ini. Kaedah korelasi dan regresi dilakukan untuk menganalisis
sifat dan kekuatan hubungan antara pembolehubah yang berbeza dalam kajian ini.

Kata kunci: kecekapan teras, analisis kerja, penjajaran pengambilan, pengambilan, proses
pemilihan, PKS (Perusahaan Kecil dan Sederhana)

vi
 TABLE OF CONTENTS

TITLE PAGE
DECLARATION ii
DEDICATION iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENTS vii
LIST OF TABLES x
LIST OF FIGURES xi
LIST OF ABBREVIATIONS xii
LIST OF SYMBOLS xiii
LIST OF APPENDICES xiv

CHAPTER 1 INTRODUCTION 1
1.1 Background of Study 1
1.2 Problem Statement 3
1.3 Research Questions 4
1.4 Research Objective 4
1.5 Significance of the Study 5
1.6 Scope of Study 6

CHAPTER 2 LITERATURE REVIEW 7

2.1 Introduction 7
2.2 Overview of the Industry 8
2.3 Dependent Variables - Recruitment and Selection 10
Practices
2.3.1 Source of Recruitment 14

vii
 2.3.2 Overview of Selection Process 15
2.4 Independent Variable of Research Study 16
2.4.1 Core competencies 17
2.4.1.1 Previous Study Related to Core Competencies 19
2.4.2 Job Analysis 20
2.4.2.1 Previous Study Related to Job Analysis 22
2.4.3 Recruitment Alignment 23
2.4.3.1 Previous Study Related to Recruitment Alignment 24
2.5 Underpinning Theory 25
2.6 Theoretical Framework 28
2.7 Hypothesis Development 29

CHAPTER 3 RESEARCH METHODOLOGY 32

3.1 Introduction 32
3.2 Research Design 32
3.3 Unit of Analysis 33
3.4 Sampling Design 34
3.5 Data Collection Procedure 35
3.6 Instrumentation 36
3.7 Questionnaire Design 38
3.8 Validity and Reliability Test 39
3.9 Techniques of Data Analysis 40
3.9.1 Descriptive Analysis 40
3.9.2 Correlation Analysis 41
3.9.3 Multiple Regression Analysis 42
3.10 Summary 42

REFERENCES 43
APPENDICES 44

viii
 LIST OF TABLES

TABLE NO. TITLE PAGE

Table 3.1 Set of questions and references 37

Table 3.2 Question design 38

ix
 LIST OF FIGURES

FIGURES NO. TITLE PAGE

Figure 2.1 A model of the organizational recruitment 14
process
Figure 2.2 The hierarchy of the competencies required by 15
companies
Figure 2.3 Sources of recruitment 20
Figure 2.4 Proposed framework for this study 28
Figure 3.1 G*Power software sample size determination 35

x
 LIST OF ABBREVIATIONS

CC - Core Competency
JA - Job Analysis
RA - Recruitment Alignment
SPSS - Statistical Package for the Social Sciences
DV - Dependant Variable
IV - Independent Variable
SME - Small Medium Enterprise
HR - Human Resource

xi
LIST OF SYMBOLS

xii
 LIST OF APPENDICES

Appendix A List of Questionnaires 55

xiii
 CHAPTER 1

INTRODUCTION

1.1 Background of Study

Edwin (1984) defined recruitment as the process of locating new employees

for employment and inspiring them to apply for opportunities within the firm. The
hiring process starts when recruiters are looking for new hires and ends when
candidates submit their applications to the company. Though various methods of
recruitment have been proposed in the literature, their effectiveness is still unknown.
Even if a study is conducted to determine the effectiveness of the available
recruitment methods, the results are not conclusive in the sense that some
organizations may have positive experiences while others may not. For example, there
are disagreements among researchers about recruitment methods. According to
Richardson (2012), organizations can find quality workers at a low cost by using
internal techniques.

However, finding the right candidate can be difficult in some cases. While
using external methods like print advertising, social media, online recruiting, college
recruiting, and online recruitment is said to have a low cost of impact (Broughton et
al., 2013; Richardson, 2012; Abel, 2011; Easton, 2007), the challenge is attracting
qualified candidates from a variety of backgrounds. This study makes an effort to
investigate the effective candidate recruitment factors utilized by Malaysian
organizations based on the debate. In addition, this research is interested in examining
the factors influencing the recruitment and selection used by the businesses in
manufacturing SMEs in Malaysia.

11
 Recruitment is a critical process carried out by an organization's Human
Resource management unit. This procedure aids in identifying the candidates who are
best suited for the specific job opportunity. It also makes it easier for potential
candidates to apply for jobs. The recruitment process is designed to attract the greatest
number of qualified candidates to apply for a specific job opening (Nikolaou and
Oostrom, 2015). However, in an organization, the selection process comes before the
hiring process and is just as important. This is a filtering procedure that aids in
choosing the best applicant from the pool of applicants that submitted applications for
the given job profile. Depending on the financial health of an organisation, these
operations are carried out manually or electronically (O'Meara and Petzall, 2013).
High level manufacturing companies have a low rate of graduate hiring and selection.
According to Bratton and Gold (2017), the percentage of graduates hired in small size
organisations is about 70%, which is higher than the percentage hired in large scale
organisations, which is only 64%. (Bratton and Gold, 2017).

This gives small and medium-sized businesses the chance to select new hires
from the vast pool of recent graduates. There are many employment openings in small
and medium-sized businesses (SMEs). Consequently, SMEs in the manufacturing
industry are able to offer employment possibilities to a huge number of people (Florea
and Badea, 2013). However, it is noted that compared to large organizations, the
recruitment and selection methods in SMEs are at a low level. Contrary to the
sophisticated technological recruitment practices used by large organizations, the
majority of SMEs use manual procedures for finding and choosing qualified
candidates (Keasey, Pindado and Rodrigues, 2015). A complete study and analysis of
the recruitment and selection process practices in the SMEs operating in the
manufacturing business are obtained by conducting this research based on the context
in which it is conducted. The small and medium manufacturing industry is the focus
of this study in particular. This study is specifically intended for Malaysia's small and
medium manufacturing sector organizations. The research also examines the types and
levels of recruitment and selection practices practiced in Malaysia's small- and
medium-sized manufacturing sector.

2
1.2 Problem Statement

One of the largest challenges the manufacturing sector has faced in our
lifetimes is the COVID-19 dilemma. In order to meet demand and remain in business,
the pandemic has prompted businesses to create new methods in employees’ selection
and recruitment while also dealing with previously unheard-of HR difficulties. 7.25
million individuals were employed by SMEs in the year, which is 65,000 fewer than
in 2019. This, according to Department of Statistic Malaysia (DOSM), shows that the
COVID-19 situation has had a considerable impact on SMEs recruitment process.
Following several years of steady rises, Malaysia's employment in SME decreased in
2020, according to the Department of Statistics' most recent report.

The ability of the organisation to meet these difficulties will increase with
investment in initiatives that empower people, enhance their abilities, and encourage
them. At the moment, organisations view their employees as a crucial strategic
resource for achieving their goals (Noe, 2002; Wudhikarn, 2015). Martin (2018)
argues that it is critical to recognise and cultivate managerial competencies in these
circumstances because a variety of industries, particularly service-related ones like
banks, are notably plagued by issues like a lack of qualified workers, high quit rates,
inadequate skill levels, and competency gaps, particularly at the managerial level.
Additionally, for a systematic and dynamic HR system, each of these subsystems must
be reciprocally strengthened because to the close ties and overlaps between them.
Although there are models for recruitment and selection, their application as a
strategic component in SMEs may be unclear.

SMEs business are finding it difficult to recruit, reward, inspire, and retain
workers as the battle for talent gets more intensely competitive. The complexity of
how organisations run and function has increased the Human Resource Management
(HRM) problems. According to Williamson, et al. (2002), three issues, point to a lack
of research on recruitment and selection in SMEs: first, there is a lack of research on
the employee competencies screening, job analysis before recruitment begins as well
as recruitment alignment practices that faced by SMEs when hiring employees;
second, previous research tends to be descriptions of recruitment practises rather than
studying any theoretical foundation on the viability of these practises; and third, the

3
majority of research is solely focused on large firms, not in SME sectors. Thus, those
previous study findings do not represent the barriers faced by SMEs. In order to fulfil
the research gap highlighted above, this research study will analyse the possible
factors including core competencies, job analysis and recruitment alignment that may
influence organization in understanding the recruitment process.

According to Breaugh and Starke (2019), despite a mix of pessimism and

optimism in the recruitment literature, there is still frustration with the lack of
progress in understanding the recruitment process. For there, a suitable research model
will be proposed as a result of this research study in order to help the organization to
implement a success recruitment and selection practices in manufacturing SMEs in
Malaysia.

1.3 Research Questions

This study will focus on factors influencing hiring practices and how they
affect hiring goals. The main research question for this study was:

1. What is the relationship between Core Competencies and the Recruitment

and Selection Practices in Manufacturing SMEs in Malaysia?

2. What is the relationship between Job Analysis and the Recruitment and
Selection Practices in Manufacturing SMEs in Malaysia?

3. What is the relationship between Recruitment Alignment and the

Recruitment and Selection Practices in Manufacturing SMEs in Malaysia?

1.4 Research Objectives

The objectives of this study are:

4
 1. To examine the relationship between Core Competencies and the
Recruitment and Selection Practices in Manufacturing SMEs in Malaysia

2. To examine the relationship between Job Analysis and the Recruitment and
Selection Practices in Manufacturing SMEs in Malaysia

3. To examine the relationship between Recruitment Alignment and the

Recruitment and Selection Practices in Manufacturing SMEs in Malaysia

1.5 Significance of Study

Although there has been limited research into the hiring practises used by
Malaysian companies, it is hoped that the results of this study would be useful to both
academics and professionals. The findings can effectively contribute to the best
strategy to plan for hiring people for the organizations in addition to adding to the
body of knowledge on recruitment. Additionally, by learning from the experiences of
others, management of the businesses would have some understanding of the
advantages and disadvantages of each recruitment strategy used as a result of the
current study. The study's impact goes beyond the Malaysian setting even though it
was limited to SMEs manufacturing sectors in Malaysia context.

This would allow organization to plan for the future recruitment pattern
and analyse the post-acceptance of selection and recruitment methods. From there,
organization can always revisit and strengthen the design for sustainability of its
recruitment styles by following the factors outline in this study. Potentially, the result
of this research can be used by other industries, not only manufacturing SMEs
organization in Malaysia context.

5
1.6 Scope of Study

This study was addressed to the manufacturing SMEs organization in

Malaysia with hiring managers who have used strategies to recruit production
workers. The manufacturing SMEs in Malaysia context is selected as scope of this
study is due to the limitation of study from previous research. N.D. Raja (2015)
mentioned that these research study could cover the SMEs company located in
various area since most of previous research was focus on general SMEs, not
specifically in manufacturing area which may lead to limitation of understanding on
the issues of recruitment. By conducting the research in different areas, it may result
greater understanding and approach of successful hiring in SMEs organization.
Furthermore, this study might be beneficial for the organization to supply useful
knowledge for hiring qualified people, which may boost organizations' productivity
in SMEs manufacturing. Manufacturing SMEs organization may refer to this
research result in order to focus on the factors influence the hiring practices and how
they affect hiring goalsz

6
 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

The second chapter discusses issues concerning the companies' recruitment

methods. These issues are examined in order to provide a theoretical framework for
the research. The discussion in Chapter 2 begins with a description of the concept of
recruitment. The discussion of the potential benefits and drawbacks of the available
recruitment methods continues. The chapter concludes with a discussion of previous
empirical findings including theoretical framework based on companies' experiences
with various recruitment methods.

The reason of conducting a comprehensive study in both of above-

mentioned areas is to have a deeper understanding the implementation of
recruitment and selection process in various sectors especially in manufacturing
SME. Researcher believe that by adopting the best practices of recruitment and
selection process based on the successful factor that suits this research area, it will
improve the service and effectiveness and will be able to give benefits towards the
organization and employee itself. However, not all successful factors that is used in
previous succeed case study are beneficial for this research context. There might be
factors that is used in non-SME context that suits culture and environment that can
be adapted in Malaysia’s SME. This literature review study is important as it can:

1) Increases the candidate’s confidence in the topic if found that others have an
interest in this topic and have invested time, effort and resources in studying
it,

7
2) Can provide new ideas and approaches that may have not occurred to the
candidate otherwise,

3) Can inform the candidate, about others conducting work in this area -
individuals whom one may wish to contact for advice or feedback,

4) Can reveal sources of data that one may not have known existed,

5) Can help interpret and make sense of study findings and, ultimately, help tie
one’s own results to preceded work (Cooper, 1998; Leedy & Ormrod, 2001).

The primary goal of the literature review here is to provide a preliminary

foundation to the research study that can give benefits to the practitioner. The
focus of this chapter is solely to provide a contextual background to the research
study topic.

2.2 Overview of the Industry

The Malaysian economy is based on small and medium-sized businesses,

which produced 32.7% of the nation's GDP in 2012. (SME Corp, 2014). In terms of
employment, SMEs are also extremely important because they account for more than
90% of all businesses in Malaysia and employ more than 37 million people, or more
than 59% of the entire private sector (Moy and Lee, 2002; Saleh and Ndubsi, 2006;
NSDC, 2013, SME Masterplan, 2012). The majority of SMEs work in the wholesale
and retail trade, hospitality, restaurants, and the production of textiles and food
products. They are crucial in connecting the supply of goods and services to the final
consumers (Saleh and Ndubsi, 2006; SME Corp, 2014). However, poor management
of human resources has contributed to the demise of numerous SMEs (Baron, 2003).
According to several studies (Brindley and Ritchie, 2000; Hornsby and Kuratko,
2003; Saleh and Ndubisi, 2006; Ahmed et al., 2011), the lack of effective
management of human capital is due to a variety of factors, including a lack of
understanding of the significance of talent and human resource management

8
 practises. The Malaysian government agrees that these issues plague the nation's
SMEs and that as a result, SME productivity was lower than anticipated (SME
Masterplan, 2012).

The government blames SMEs for their under-focusing on long-term sustainability

and competitiveness of the firm in favour of short-term concerns, low-cost
leadership, and over-employment of unskilled labour. According to the 2012 SME
Masterplan, entrepreneurship training for firm owners and upskilling of the
workforce to better adapt to technological developments should be given high
emphasis. Three areas of human capital development in Malaysian SMEs were found
to be weak:

1. A mismatch between the need for and supply of human resources, as well as a lack of
an industry-focused curriculum.

2. Low utilisation of already available training

3. Non-competitive benefits

Compared to larger companies, SMEs have various approaches to talent

management. The way in which SMEs and large organisations manage their human
capital differs significantly, according to Creelman (2004). He notes that attracting,
selecting, motivating, deploying, developing, and retaining talent are core talent
concerns that both SMEs and large organisations deal with. The smaller the firm,
the more obvious some limits are. These consist of:

1. Lack of specialised expertise: While large companies have experts in specialised

people management fields and gain from experience, a vast knowledge base, and
diversity, smaller companies lack the knowledge necessary to carry out complicated
jobs effectively.

2. Fewer Economies of Scale: Large companies can invest in advanced assessment

tools to precisely identify talent, whereas smaller companies cannot.

9
3. Criticality of Each Hire: If a company has 1,000 sales representatives, a single hire
won't have as much of an impact. However, if there are just 5 employees, each one
interacts with 20% of your client base.

4. Criticality of Turnover: Critical regions experience turnover as a result of the

continuity difficulty that smaller businesses encounter. Key staff departures can be
detrimental to small businesses. Employees with a specific skill set or knowledge
base are more likely to leave their jobs (SHRM, 2008). A small business can lose its
network with the advertising agency if one of its marketing personnel leaves.
Additionally, the SME might have fewer resources available to cover replacement
expenditures and a smaller internal labour force to fill in for the task of the lost
employee (SHRM, 2008).

Through the SME Master Plan 2012 report, the Malaysian government admits
that SMEs should place more of an emphasis on long-term sustainability and
competitiveness of the firm than just addressing short-term issues like low-cost
leadership and hiring unskilled labour. The report found that Malaysia's SME
productivity was relatively low, and it therefore advocated that human capital
development be given top priority. This could be done by providing business owners
with entrepreneurship training and upskilling workers so they can better adapt to
technological changes. The government also promoted adopting a comprehensive
strategy for human capital development, including skill development and retention
that emphasises employee welfare, customer satisfaction, public interest, and
environmental concern in order to add value over the long term by fostering
stakeholder trust.

2.3 Dependent Variables - Recruitment and Selection Practices

Many authors refer to recruiting in the literature as the process of inviting

people to fill a certain position in the company (Deillon, 2014; Ibrahim et al., 2006;
Pin, Laorden & Diez, 2001). It is the initial step in the hiring process that gives job
seekers information about the company that may affect their decision to accept or
reject employment prospects (Barber, 1998). According to Poorangi, Khin, and

10
Rahmani (2011), recruiting is the process of locating new employees, weeding out
unqualified applications, and selecting the best individuals for a position at a company
to fill job vacancies. Numerous studies have been conducted on the organization's
recruiting and selection procedures for personnel. In those research papers, a few
recruitment and selection process factors are mentioned. A good selection process
delivers talented individuals to the business, enabling it to easily reach its goals in a
given time frame. One of the most crucial HRM activities that aid in attracting
qualified individuals is the recruiting and selection process. The standard of
candidates chosen for the position also reflects the organization's requirements and
mindset.

The key components of any organization's human resource entry point,

which also tends to define its success and sustainability, are recruitment and selection
methods. People are essential to companies because they bring perspectives, values,
and characteristics to organisational life. When skillfully handled, these human
characteristics can have a significant positive impact on the organisation. Numerous
academics have demonstrated in-depth understanding of the organization's hiring and
selecting procedures. The recruitment process chooses possible applicants for genuine
organisational openings. Finding and attracting eligible candidates to apply for open
positions within the organisation is the process of recruitment. It mostly involves the
process of creating a pool of qualified people who can apply for jobs within a
business. In order to accomplish its overall strategic objectives, a business must
choose the best candidates throughout the recruitment process, which is the first step
in gathering its human resources.

On the other hand, the company uses a variety of hiring procedures and
guidelines to locate and entice new employees. In addition, recruitment is defined as a
collection of procedures and activities used to legally hire a sufficient number of
qualified individuals for the right position at the right time and place, allowing both
the individual and the organisation to make mutually beneficial short- and long-term
decisions. However, the goal of recruiting is to gather as many qualified and
appropriate individuals as possible while keeping costs to a minimum to meet the
demands of the company. Additionally, the recruitment process includes an accurate
job specification for a vacant position, major responsibilities, necessary skills,
11
experience, educational requirements, pay scale, job type, any special conditions, etc.
These elements are attached to the job in defining the recruitment process.

According to Abraham et al. (2015), recruitment and selection are crucial

elements of a successful human resource management system. In order to obtain a
deep strategic focus, SMEs recruitment is one of the typically specified tasks
associated to the human resource management teams in the manufacturing industry.
According to previous research, the recruiting process takes time since it involves
choosing the best candidate who meets the requirements of the job description, which
is the result of a job analysis. Through its proper recruitment practises, the hiring
process should help the business units. The chosen applicant ought to serve as an
ongoing human resource for the business. To prevent employee turnover, it is crucial
to ascertain the candidate's attrition rate in their prior employer. It is possible to
conduct internal or external hiring. Internal recruitment identifies and draws in the
best candidates from among those already employed by the same company. Internal
recruitment is done for either promotion, transfer, upgrading, or downgrading. A
typical internal recruitment process consists of five steps: 1) internal recruitment
planning; 2) strategy development to determine where, how, and when to search for
qualified candidates; 3) finding for internal applicants, which includes communicating
and distributing job announcements; 4) developing a system to make shift to select the
job candidates; and 5) consideration of legal issues like the genuine seniority system,
glass ceiling, and regulations.

Transfers are acknowledged as the most typical internal source for hiring.
According on the employees' success at work and length of service with the company,
the organisation typically moves employees from one department to another
(Shodganga, 2003). In addition to transfers, promotions are another internal source of
hiring where workers are given greater benefits and responsibility as a reward for their
excellent work. Upgrading current employees who have demonstrated strong
performance is another internal source for hiring. However, if their performance is at
its worst, they risk being demoted (Shodganga, 2003). Internal referral is another
common method of hiring. According to Easton (2007), this strategy involves offering
internal promotions in exchange for recommendations from co-workers or reliable
12
contacts. The least expensive approach of hiring a new executive is typically this one.
Many businesses offer the referee financial compensation in the form of rewards.
Large enterprises and government agencies typically employ this strategy.

As opposed to internal recruitment, external recruitment involves evaluating a

pool of potential employees who are not currently employed to see if any are
adequately talented or qualified to fill open positions. It is the process of looking for
candidates outside of the organization's present employment pool to fill unfilled
positions (Gigli, 2003). According to Richardson (2012), there are two types of
external hiring practises: formal and informal. Small and medium-sized businesses
like the informal technique of recruitment, which includes walk-ins and referrals, as
one of the rehiring strategies. On the other hand, formal approaches are frequently
employed to find new applicants who are unconnected to any prior employment by the
labour market (Richardson, 2014). This approach is combined with more conventional
ones including newspaper, magazine, and journal advertising as well as executive
search firms, the labour department, and college hiring. Global companies consistently
rank effective talent management as their top priority in order to sustain corporate
success. To successfully move the business, many firms, however, struggle to connect
their hiring practises with the organization's strategic objective. The competitive
advantage of the business can be strengthened by coordinating the recruitment strategy
with the strategic plan.

Human capital, which is the sum of each employee's knowledge, abilities,

qualifications, and experience, is the company's most important intangible asset. In
addition, there are the key three stages of developing applicants, sustaining applicants'
status, and influencing job choice judgement. While there are many theories on
recruiting, an organising framework for the recruitment process. Additionally,
recruiting objectives, strategy development, recruitment activities, process variables,
and recruitment result are the top five crucial stages of the hiring process (Karim et al.,
2021).

13
Below is a description of these phases:

Figure 2.1: A model of the organizational recruitment process (Breaugh and Strake,
2000)

Stage 1 shows the initial phase of the hiring process. In this stage, the organization
calculates the applicant pool size, applicant volume, applicant calibre, etc. The
formulation of a recruitment plan is the second stage. It involves creating a
recruitment strategy, the development of which is influenced by the outcome of the
first step. Stage 3 includes the recruitment message and advertisement are examples of
recruitment activities. Realism, thoroughness, and timeliness are essential components
of an effective recruitment message. But when it comes to hiring, many businesses are
not overly concerned about the results. The process variables include the applicant's
focus, comprehension, interest in the message, accuracy of expectations, and self-
awareness are list in stage 4. These factors have a direct impact on the link between
recruiting efforts and hiring results. Stage 5 deals to the review and evaluation of the
recruitment process's sources. At this point, the business learns crucial information
about its recruitment approach.

2.3.1 Source of Recruitment

Numerous sources of hiring are used by many employers. Other scholars

have asserted that various recruitment channels connect with applicant pools that
may vary in terms of traits like motivation or perceived career mobility. According

14
 to some experts, there are two categories into which one might divide personnel
sources: internal and external. Additionally, the organisational activities such as the
performance of staff turnover, employee satisfaction, employee wishes, and the
commitment of the organisation are closely related to the recruitment sources.
There are essentially two different categories of recruit sources. The source of
recruitment is listed in Figure 2.2.

Figure 2.2: Sources of recruitment (Source: Prashant (2009)

Internal sources refer to selecting candidates from within the company to fill a
position. A company can hire internal candidates through posting job openings,
rehiring previous employees, using succession planning, the internet, advertising,
employment agencies, temporary staffing firms, and other alternative staffing
methods. Meanwhile external sources refer to the process of selecting candidates from
outside a certain organisation to fill open positions.

2.3.2 Overview of Selection Process

The process of selecting the best qualified candidate from the pool of
candidates who are hired to fill the appropriate job vacancy is known as selection. On
the other hand, selection is a process in which certain tools are used to pick the best
candidates from a group of people who are qualified for the jobs. Additionally,
selection refers to the methodical process of choosing a certain person to fill a position
that is open. The process of choosing the best candidates from a pool of competing

15
applicants is known as selection. The goal of the selection process is to fairly and
legally match the applicant's ability, knowledge, skills, and experience with the job
requirements. The process of selecting the most qualified people from among various
qualified groups for a certain position within an organisation is known as selection.
The selection process is designed to find and hire the most qualified and eligible
candidates for particular roles, in contrast to the recruitment process, which is geared
toward enticing people to seek employment with the business.

The hiring process for potential workers involves choosing them from a pool
of other candidates to perform a certain job. Karim and Latif (2021) added that several
techniques are utilised in the hiring process to elicit significant information about
applicants, which is then compared to the job criteria. Every management in the
company needs to be aware of the qualifications needed to carry out a specific
position. Applications, résumés, reference checks, tests, interviews, and reference
checks can all aid in spotting applicant discrepancies. The managers can decide who
to hire based on the candidates' skills and flaws. The selection process has been
broken into six distinct phases in a manner similar to recruitment. Screening
interview is another name for the preliminary interview. Preliminary interviews are
essentially used to weed out applicants that aren't qualified based on the data provided
in application forms. Employment tests are another name for selection tests.
Depending on the position and the company, many examinations may be given. The
organisation can ascertain the applicant's knowledge, abilities, skills, behaviour, etc.
through this test. In general, organisations employ the testing process to draw in more
qualified candidates. A good employee can be chosen through the personnel selection
process, nevertheless.

2.4 Independent Variable of Research Study

This subtopic will elaborate the independant variables of this research study which
comprises of core competencies, job analysis and recruitment alignment.

16
2.4.1 Core competencies

A key strategic strategy for HR management and organisational development

is competency-based management (McClelland, 1973), which may be crucial in
securing and maintaining a competitive advantage (Mitrani et al., 1992; Campbell and
Luchs, 1997; Davenport and Prusak, 1998; Nadler and Tushman, 1999). It has
developed into a crucial tool for use in hiring, training, and enacting organisational
reforms (Shippmann et al., 2000). The idea of competency models for human
resources development was first presented by McLagan (1980, p. 23), who
characterised them as "decision tools which identify the key capabilities required to do
a job." Since people can be thought of as a business's most essential "intangible asset,"
competency modelling links the development of job descriptions to the strategy of an
organisation. A fairly common theme in management literature and practise is
competency modelling (Wernerfelt, 1984; Prahalad and Hamel, 1990; Rumelt, 1991;
Peteraf, 1993; Collis and Montgomery, 1995; Teece et al., 1997; Porter, 1998;
Eisenhardt and Sull, 2001; Hoopes et al., 2003; Ludwig and Pemberton, 2011;
Kozlenkova et al., 2014). This method is now essential to using when characterising
employees in terms of company objectives.

According to the definition of competency, it refers to the "knowledge, skills,

abilities and other qualities (KSAOs) that are essential for effective performance in a
job" (Campion et al., 2011, 226, see also Mansfield, 1996; Parry, 1996; Kochanski,
1997; Mirabile, 1997; Green, 1999; Lucia and Lepsinger, 1999; Shippmann et al.,
2000; Rodriguez et al., 2002). Shippmann et al. (2000) emphasise the fact that these
models are applied in businesses without the use of validation processes. Although the
model's underlying assumptions and list of abilities may vary between firms, this step
is crucial to gathering accurate data on employee potential. Behavior patterns that
support the operationalization of competencies have desirable norms. Barrett and
Depinet come at the same conclusion (1991). They draw attention to the lack of
empirical research to back the assertion made by McClelland and Boyatzis (1980) that
skills are more accurate predictors of achievement in the workplace than conventional
intelligence tests. Additionally, Laber and O'Connor (2000) draw attention to the
paucity of empirical studies examining the efficacy of competency models. Sparrow
(1995) demonstrates that most of the alleged profits of competency models for

17
businesses are based on case studies, where study methodology was not at all
disclosed.

Studies generally concentrate on the competencies themselves when assessing

an employee's workplace competencies (e. g, Reio Jr & Sutton, 2006; Lievens,
Sanchez, Bartram, & Brown, 2010). However, research measuring the skills variable
as a hiring or selection process outcome are rare. Few academics also assess a
worker's competency in terms of recruiting or selection by assessing the competency
of new hires (Bishop, 1983). When evaluating candidates for employment and
selection, a candidate's competencies and other attributes are taken into consideration
(Vorgelegt von, 2008). The research on skills in recruitment and selection, however, is
scarce and dispersed. A few research on this relationship have been done, although in
a subpar way. One such study is Brown's (2007), which verifies the association with
employee competency as the result of the hiring process. But it used the phrase "skills
based on individual performance" to refer to the evaluation of the board's competence.
Additionally, Cabrera & Nguyen (2001) and MacKenzie, Ployhart, Weekley, & Ehlers
(2010) looked only at the selection process in relation to the (KSA) topic from the
employee competency.

The assessment of competencies gives management and employees a shared

view of the abilities and conduct important to the firm. Since these firms' behaviour
constitutes their strategic core competencies for success, they are adopting a pay for
competences strategy in response to that significant worry (Ledford & Heneman,
1999). Recent recruitment studies have also revealed that organisations recently have
thought solely in terms of competence profiles rather than position success profiles.
They focus more on staff competency, but (Aurélie & Fallery, 2009). Since the usage
of competences has increased in recent years, it is vital to draw attention to their core
principles. It has also been utilised in many facets of human resource management,
from hiring and selecting staff members to tracking their growth and performance for
the organization's long-term strategic planning (El-Goully & Wahba, 2011). However,
highly effective firms require high competency personnel.

Additionally, according to literature, one aspect that significantly influenced

the development and maintenance of organisational excellence was personnel
18
 capabilities (Vathanophas, 2007). Employee competencies were viewed as a source of
competitive advantage for firms in competitive situations (Sanghi, 2004).
Additionally, in order to boost corporate success, employees must possess certain
competencies (Zakaria, Zainal, & Nasurdin, 2011). The researchers view the
competencies as the institution's and the employee's future (McClelland, 1973;
Rodriguez, Patel, Bright, Gregory, & Gowing, 2002), The use of competencies to
identify excellent employees or high-performing individuals has increasingly gained
popularity in human resource management (Boyatzis, 1982; Spencer & Spencer,
1993). The literature views the connection between employee competence and
recruiting and selection as a key to success. Such employer behaviour ultimately
affects how well employees perform in their jobs (Gill, 2007, Vance & Foundation,
2006). Because they anticipate that by investing in the process, businesses would be
able to acquire only the most qualified and skilled personnel, they devote resources to
recruiting and selection (Bishop, Barron, & Hollenbeek, 1983). This is demonstrated
by businesses that are successful in finding and choosing qualified staff (Howard,
1999; Bozionelos, 2005). According to Cascio (1998), every stage of recruiting and
selection should include an evaluation of competency for the job. According to Gill
(2007), Vance & Foundation (2006), and Howard (1999), an employer who uses a
proper process to recruit and choose qualified candidates would see a higher level of
job success. Additionally, the employer will be able to hire quality employees and
workers who embrace competencies (Bishop, et al., 1983; Bartram et al. 2002;
McClelland, 1998; vorgelegt von, 2008; Breaugh et al, 2003; Ley & Albert, 2003; Ey,
2006; Bishop, et al., 1983; Yng Ling, 2003; Keep and James, 2010).

2.4.1.1 Previous Study Related to Core Competencies

Previous study by D. Loana (2022) on the competencies required by employers

in the process of recruiting in Malaysia reveals that, in the recruiting process, an
organization focus on competences, but especially on soft skills and not on professional
competencies, as shown by other similar studies. According to an analysis of the
study's findings, soft skills are generally more valued in the hiring process than
professional competencies in this situation. The three questions below served as the
foundation for the research given in this study: What qualifications do businesses look

19
for the most when hiring new employees? How happy are the recruiters with the
competencies that the person has demonstrated while working for the organisation?
How can staff competencies be enhanced to better meet the actual needs of the
corporate environment? Figure 2.3 displays the outcome of potential key abilities
needed by an organization:

Figure 2.3: The hierarchy of the competencies required by companies

Figure 2.3 lists the scores for several activity sectors by groupings of companies, with
the order of competencies priority. In this study, the idea of competence-based
learning is receiving greater attention. People must be able to locate a suitable
employee and be effective and productive at work with the aid of the professional and
transversal abilities they learned during the hiring process.

2.4.2 Job Analysis

Over the past few decades, the scope and applications of job analysis have
expanded. It is a vital and comprehensive source of data about occupations and job
holders. It is a vital and comprehensive source of information on jobs and job holders

20
that managers and professionals use to create performance standards and documents
like job descriptions, job specifications, and job evaluation. In several connected
fields, the management of human resources is based on these publications. As a result,
human resource practises like training and development, recruitment and selection
strategies, performance appraisals, compensation, and health and safety requirements
are increasingly being developed around the requirements and characteristics of jobs
to be clearly understood by both the job holders and the organisations. Job analysis is
a methodical procedure for examining, determining, and gathering particular
information on the duties and tasks associated with a certain job that identifies the
necessary abilities, knowledge, and skills. According to Ele, Makama, and Okongo
(2020), job analysis is a widely used organisational data collection technique for
determining the nature of a job, including its content, context, and requirements, as
well as the relevant technical skills, competencies, knowledge, abilities, and other job
characteristics needed by both current and prospective employees to perform their
jobs more successfully.

Job analysis is the systematic process of examining, identifying, gathering, and

outlining specific information about the contents of jobs in order to provide the
fundamental framework for a job description and data for recruitment, training, job
evaluation, job specification, career planning, performance appraisal system,
promotion, and performance management in order to improve organisational
performance (Ele, et al., 2020; Armstrong, 2009; 2012). Job analysis is a crucial tool
for any organisation, whether private or public, to have an effective human resource
planning policy (Ele, et al 2020). They went on to say that job analysis is a
fundamental internal strategy used by human resource managers, job analysts,
professionals, and practitioners in order to gather relevant information regarding the
jobs and the workers prior to or during recruitment, selection for training, and
onboarding of new and existing employees in any given organisation. One of the most
crucial aspects of human resource management is job analysis, which has a variety of
uses, including work definition, job specification, job appraisal, etc. This provides a
solution for the most efficient work organisations or classification of work, improving
inefficient processes of redesigning work, planning training for integrating new hires
into current workflows or current employees into new workflows, establishing criteria
assessment of employment effect, adequate and fair compensation, and planning for
21
employees' welfare throughout their careers (Stoilkovska & Serafimovic, 2017; Ele, et
al 2019; Ele et al 2020).

It is an essential component of human resource planning during recruitment

selection and selection for determining training and development needs. Many human
resource practises, including job analysis, job descriptions, job specifications, job
evaluations, recruitment and selection, compensation, performance management,
career planning, training and development, and rewards, must be delegated to the
human resource management department as human resource activities expand in
scope and complexity. This is due to the fact that the majority of human resource
specialists are unaware of the specifics of the occupations and their requirements.
Through the methodical collection, assessment, and organisation of job-related
information, a process known as job analysis, knowledge about the positions and their
requirements must be gathered. In an organisation, information on each job and the
person who will execute it must be gathered and examined. Work analysis is a method
that describes dissecting a particular job into its constituent parts using a variety of
tools and approaches to determine job needs (Rehman, 2009). To increase corporate
performance in both public and private sector organisations, job analysis must be the
cornerstone of the recruitment and selection of individuals to fulfil organisational jobs
(Ashraf, 2017).

2.4.2.1 Previous Study Related to Job Analysis

The Behavioral Interview tool was developed based on probes and scoring
guides, which is based on an Absolute Rating Performance system, as it is more valid
and reliable as it compares employee performance with an absolute standard of
performance. The tool was presented in the previous study conducted by S. Singh
(2017). The procedures of hiring, choosing, orienting, training, career development,
counselling, health, safety, performance management, and compensation all depend on
job analysis. A variety of other HR-related tasks, such as creating job classification,
job evaluations, selection and recruitment, performance appraisal and training,
including incentive pay and compensation, improving work conditions, charting lines
of responsibilities, etc., use the data gathered and analysed through job analysis.

22
 After the study was completed, 15 significant job analyses were produced and
further determined based on tasks, context, and counterproductive features. In order to
arrive at a final list of task statements that were based on the agreement of 75% of all
incumbents performing the job, the process involved the initial identification of
critical statements and analyses of task statements, compilation of a task inventory,
and getting that task inventory rated by multiple incumbents and SMEs. This was
done following the mean ratings of each task statement's frequency, importance, and
difficulty by the sample's incumbents. Based on their significance and competence,
key analyses were found and examined. A matrix was then created and analysed for
the quantity of encouraging signs. Each knowledge, skill, ability, and other trait that
appeared in at least 50% of each task statement's components and those that earned
percentage weighting or ranks was ranked for relevance. The matrix includes
categories including knowledge, skills, abilities, and other traits that have been
recognised. During the recruitment and selection process, candidates who don't meet
the requirements may be turned away.

2.4.3 Recruitment Alignment

A set of procedures called recruitment alignment will help an organisation

better find, hire, involve, manage, and inspire your staff. These procedures are centred
on objectives that the company ought to want to accomplish within a specific time
frame. People will be hired through efficient recruitment and selection procedures,
enabling organisations to achieve their strategic and operational objectives. For
effective workforce planning and resource alignment to successfully advance the
business, recruitment methods must be in line with the organization's strategic
objectives. It is crucial to understand the distinction between strategic human resource
management (SHRM) and human resource management (HRM). Management of
people is a component of human resource development, as is creating a cordial
employer–employee relationship.

The goal of strategic human resource management is to coordinate the

effective utilisation of people with long-term organisational goals (Sahoo, Das &
Sundaray, 2011, p.18). But in many large organisations today, it's becoming crucial

23
that strategic HR systems are in line with organisational goals. However, recruitment
and selection might be highlighted as one of the more crucial components of strategic
human resource management. Nowadays, organisations conduct a continuous and
time-consuming process of recruitment and selection, as opposed to the past when it
was only done as needed (Barratt, p.5, 2006). This is another proof that the hiring and
selection process has undergone significant change in recent years. Strategic human
resource management is important for an organization's success because it helps the
workforce align with the organization's goal. Additionally, this results in the
achievement of organisational goals.

In order to shape the organisational culture, the HR strategy should be in line

with the business plan. Important HR constraints must be taken into account by the
organisation for the business strategy to succeed. Human resources are now frequently
viewed as critical assets by businesses because they are thought to contribute
significantly to competitive advantage (Sahoo, Das & Sundaray, 2011, p25).
According to Ramona & Anca (2013, p.636), "human resource management is a vital
aspect of how an organisation is going to fulfil its purpose and the only way to keep
employees aligned with the objectives of the organisation is by integrating it into the
organization's strategic plan." Johnson and Scholes (1999, in Chanda, Bansal &
Chanda, 2010, p. 3) emphasise that strategy implementation is about coordinating the
organisational structure, systems, and procedures to carry out the corporate strategy.
It's critical to match resources to a dynamic environment when determining strategic
alignment. Additionally, Sparrow and Hiltrop (1994, in Millmore, 2003, p. 90)
highlight the significance of the hiring and selection process in an organisation and
how it links employee success to company strategy. The company strategies are
synchronised through strategic integration with the dynamic business environment.
According to Monks (1993, in Vernon and Brewster, 2013, p. 1113), those with
higher human resources expertise tend to promote a more strategic approach.

2.4.3.1 Previous Study Related to Recruitment Alignment

M. Argue (2015) has conducted a study that looks into how organisations
match the goals of their hiring and selection processes. To gather information,

24
 compare, analyse, and provide results for the study topic, five interviews with
members of these three organisations were conducted. This study highlights the
significance of the strategic recruiting alignment and selection process in achieving
organisational goals. The alignment of strategic HR systems with organisational goals
is, however, more important in many large organisations today. Recruitment and
selection might be emphasised as one of the more crucial components of strategic
human resource management despite the fact that it includes many other features.

To gather the data for this dissertation, semi-structured interviews were

conducted. This made it possible to explore a variety of topics, depending on how the
conversation developed. As the interview process progressed, additional questions
were included or left out when particular outcomes or issues came up that had not
been previously explored or were not pertinent to the research topic. Participants were
given the chance to answer questions and speak candidly about various topics
connected to the research issue during the semi-structured interviews. Any
organisation should make an effort to hire people who will support the goals it has
established for itself. Therefore, this research's findings make it clear that aligning the
recruiting and selection process to the organization's goals is an important
consideration. The questions under this subject received a range of responses. When
done properly, recruitment and selection are a useful process that may inspire and
motivate the organisation to form a solid team and progress its goals.

2.5 Underpinning Theory

Several theoretical frameworks should serve as the strategy's compass. A

variety of human resource (HR) processes are supported by a number of theories.
Organizations can employ a variety of tactics during the hiring and selection
procedures to make sure the correct people are hired.

Human Capital Theory (HCT)

According to the human capital theory (HCT), people have a variety of skills,
talents, and personalities that may be used to determine the amount of human capital in

25
a given business. To add value to the organisation, people with particular talents, ideas,
and information will be sought out (Ekwoaba & Ikeije, 2015). By utilising this model,
professionals and HR specialists will concentrate on the ideal methods for locating,
hiring, and keeping personnel who have the potential to boost organisational
performance. According to the theory of human capital, education promotes personal
productivity, which raises incomes (Becker, 1975; Mincer, 1974; Schultz, 1961). The
opportunity cost of investing in education involves giving up current wages. According
to the hypothesis, people value future earnings more than the opportunity costs of
current salaries that are foregone (Rohling (1986). According to this viewpoint, human
capital is a resource, much like physical capital, whose anticipated future advantages
outweigh its current cost (Wang & Sun, 2009). Therefore, it can be said that investing
in education should continue until marginal productivity gain and marginal opportunity
costs are in balance (Brown & Sessions, 2000). (2004).

Not all economists agreed that productivity is directly increased by human

capital. For instance, Harvard economist Richard Freeman asserted in 1976 that capital
equipment, capital training, and motivation were ultimately responsible for achieving
real productivity rather than human capital, which only served as a signal of aptitude
and ability. He came to the conclusion that human capital wasn't really an element of
production. New criticisms of the human capital theory's reliance on the notion that
people are rational actors emerged in the 1980s and 1990s with the development of
behavioural economics. Because the human capital theory's fundamental assumptions
about human motivations, aspirations, and actions are, it turns out, unfounded, it will
encounter the same flaws and limits when it attempts to explain occurrences. The idea
of social capital explains how relationships develop within a company. Organizational
leaders can encourage contacts and teamwork in an effort to maximise performance,
claims the human capital hypothesis. The institutional capacity and expertise acquired
to produce quantifiable results is known as organisational capital. Given this, the
hiring, recruiting, and retention processes all depend on this hypothesis (Nalla &
Varalaxmi, 2014). It is based on the idea that businesses can invest in the individuals
who have the capacity to support their individual business strategies.

26
Resource-Based View (RBV) Theory

Another model or theory that emphasises the idea of sustainable

competitiveness in an organisation is the resource-based view (RBV) (Nalla &
Varalaxmi, 2014). This model suggests that businesses who go above and above in
developing their human resource assets will find it simpler to face the challenge of
competition. It will be challenging for the company's competitors to compete with it
and raise performance levels as a result. The RBV model suggests that businesses
analyse their workforces in greater detail. By doing this, the businesses will be able to
find and keep employees that have the necessary capabilities. The abilities are then
linked with the organization's evolving demands or goals (Ekwoaba & Ikeije, 2015).
The degree of performance in a company is determined by the quality of the workforce,
the relationships that have been built, and the leadership techniques used. It will be
simpler to deal with the current rivalry and eventually promote performance when HR
managers determine the ideal methods to strengthen their human capital resources
(Adewale & Anthonia, 2013). The RBV model can change the environment and
ultimately lead to the success of the targeted organisation.

Equity Approach Theory

Employing the appropriate people paves the way for businesses to launch effective
programmes that can advance fairness and equality. One of the theories that businesses
can utilise to empower their staff is the equity approach concept. The theory directs
businesses to use the finest practises that can lead to equal opportunity (Adewale &
Anthonia, 2013). From hiring to retention strategies, such chances must to be taken into
account. Equal opportunity, access, and sharing are the three distinctive policies that
may help to advance fairness. This implies that workplace practises and rules should be
inclusive. Companies that aspire to flourish should put fair procedures, access to
sufficient resources, promotions, and empowerment into place. The nature of the hiring
and selecting process is crucial since it determines how well the business performs.
Making ensuring that the strategy is influenced by the required human capital for the
company is crucial (Sultana, 2014). This knowledge will enable the HR manager to
find qualified applicants who have the potential to meet the specified goals and
objectives. Adewale and Anthonia (2013) are adamant that retention must be taken into
27
account during the recruitment and selection process. Companies must think about the
best strategies to guarantee that the evolving needs of the workforce are addressed after
carefully choosing and hiring the right people. By doing this, it will be feasible to
establish beneficial leader-member social interactions (Ekwoaba & Ikeije, 2015). The
strategy will enable the staff to concentrate on the specific organisational goals. A
sound selection strategy can help more businesses find, hire, and keep qualified
employees who can boost productivity.

2.6 Theoretical Framework

Examining the factors influencing recruitment and selection process in the

context of SME manufacturing is the aim of this study. This study will explore the
link between three independent variables—core competencies, job analysis, and
recruitment alignment—as well as one dependent variable—recruitment and selection
—based on the relevant theoretical framework indicated in the section above.
According to what is shown in Figure 2.4, the proposed theoretical framework for this
study was constructed in accordance with that.

core
competencies

job analysis recruitment and

selection

recruitment
alignment

Figure 2.4 Proposed framework for this study

28
2.7 Hypothesis Development

There are currently only a few numbers of quantitative research on

competency-based hiring, hiring practises, and performance. Chris (1996), for
instance, discovered through a case study that the Holiday Inn Worldwide's three
regional divisions in America, Europe/Middle East/Africa, and Asia-Pacific have
experienced significant growth in product distribution and profitability when
competencies are integrated into human resource practises like recruitment and
selection, training, and compensation and performance management. Several tools,
including competency-based advertisements, application forms, resume and cover
letters, competency-based interviews, competency tests like cognitive ability tests and
personality tests, assessment centres, and clearly differentiating scales or ratings used
in the selection of future employee in recruitment process. However, the study of
effectiveness in using the core competencies as one of major factors in successful
recruitment and selection process especially in manufacturing SME sectors are still
limited. Thus, this hypothesis was proposed in order to examine the relationship
between core competencies and the recruitment and selection practices:
H1: There is a positive significant relationship between core competencies and
recruitment and selection practices.

In order to ensure that organization are able to choose employees that

appropriate for their knowledge, skills, and talents, it is crucial to conduct a job
analysis that includes aspects of job design, job descriptions, and job specifications. In
this regard, the HR department and line managers should make sure that the work
design is carefully thought out and carried out before they hire a person into the
available position. Rehman (2019) conducted study on HR practises in Malaysia's
SME sectors, which is quite uncommon. He acknowledged the significance of HR
procedures and choosing the best candidate for the position. According to his findings,
the research shed light on precise job analysis for choosing the right applicant for the
right job, which was totally disregarded Malaysia's SME sector. He added that hiring
should be done in conformity with the requirements of the position. When Khan,
Ahmed, and Neogy (2011) conducted research on Malaysia public sector, they found
that the HR departments, particularly the department responsible for recruitment and
selection, are understaffed. It is also known as an administrative division that looks

29
after organisations' staff members. As a result of the HR department's lack of
comprehensive job analysis, bad job descriptions are created, which makes it difficult
to find the best candidate for the position. In public sector organisations, this creates
problems with recruiting and selection. Thus, to confirm on the efficiency of job
analysis towards successful recruitment and selection process, this hypothesis was
proposed:

H2: There is a positive significant relationship between job analysis and

recruitment and selection practices.

According to preliminary research, the workers who comprehend their

organization's strategy and the strategically aligned job behaviours that go along
with it perform better and exhibit employer-wanted work attitudes like commitment
and job satisfaction than workers who are unaware of their organization's strategies
and their associated aligned job behaviours (Boswell, 2006). The way that leaders
behave as devoted people may have an impact on strategic alignment. However,
before the organization are able to select the best candidate that suits their
organization, a recruitment strategy should be in place so that the organization
could select suitable employee that fits their requirement. Thus, the recruitment
strategy alignment shall be examined in this research study. This hypothesis was
proposed in order to examine the relationship between recruitment alignment and
the recruitment and selection practices:

H3: There is a positive significant relationship between recruitment alignment and

recruitment and selection practices.

According to the broad interpretation of this study, core competencies, job analysis
and recruitment alignment were proposed as the factors on successful recruitment
and selection practices in manufacturing SMEs sectors in Malaysia. From there,
those variables could lead to a good employee performance as well as
organisational performance. Nevertheless, there is an unclear correlation using
underpinning theory between organisational performance and those three variables
in previous research. Thus, this study suggests three hypotheses to be tested in

30
order to study the importance of core competencies, job analysis and recruitment
alignment towards organisational performance.

31
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

This chapter investigates the selection of appropriate paradigms and

methodologies for carrying out the research study in accordance with the defined
objectives and research questions. This chapter also describes appropriate procedures
used by the researcher to retrieve required information. This chapter also sheds light
on sampling, data gathering, and analysis procedures by providing explanation for the
approaches used.

3.2 Research Design

A cross-sectional, quantitative study was conducted for this research study

to determine whether the constructs such as core competencies, job analysis and
recruitment alignment were positively associated to recruitment and selection
process. A cross-sectional study is a form of research design in which data is
collected from a large number of people at one time. In cross-sectional study,
variables are observed without being influenced. Researcher used a deductive or
quantitative research approach since this study is evaluating an existing theory to see
if it was applicable in this research environment through data collecting, analysis,
and interpretation of results. A survey research technique was used, with self-
administered questionnaires serving as the primary data source for the study.

Depending on the research done, the time frame is affected. A cross-

32
sectional or longitudinal research time horizon will be selected for this research
study. It takes time to conduct longitudinal research since it requires the study and
observation of change and development. When a researcher only has a small amount
of time to complete a research topic, they adopt a cross-sectional temporal horizon
(Saunders et al., 2009, p.155). Cross-sectional studies are frequently used in
academic research since there is a temporal constraint, according to Saunders, Lewis,
and Thornhill (2009, p. 155). Cross-sectional research examines a specific
phenomenon at a specific time (Saunders, Lewis & Thornhill, 2009, p155). Thus,
this research study was created during a cross-sectional period of time

Quantitative research is used to assess the problem by formulating numerical

data or data that may be transformed into actionable insights. It is used to gather data
from a larger example population and measure behaviours, evaluations, practices,
and other identified criteriaFor this research study, quantitative method will be used
and the survey will be distributed via online using a Google form platform.
Meanwhile, the data analysis will be conducted by using SPSS software.

A questionnaire survey was conducted among hiring executives from

manufacturing SME sectors in Johor Bahru who have experience carrying out the
recruitment and selection methods in the current working environment in order to
gather primary data to evaluate the hypotheses generated for this study. These
individuals were chosen as the study's target responders because, at this point, they
ought to have the strongest motivation to be enthusiastic about their career choice
(Borchert, 2002).

3.3 Unit of Analysis

The primary parameter under investigation in this research study is referred

to as the unit of analysis. The unit of analysis for this study consisted an individual
who has experience working in HR department specifically in recruiting section in
SME’s manufacturing industry from businesses in Johor Bahru.

33
3.4 Sampling Design

A sample is a grouping of a particular number of people from a large

population who help retrieve the needed data. The process of sampling entails
gathering the necessary and appropriate samples of people from a certain demographic
group, which is important in the choice of the necessary people from a limited
population. The characteristics of the sample population assist in the creation of
required responds in relation to the study's defined question. Determining an
appropriate sample size is critical for doing research (DePoy and Gitlin, 2015). This
study's population consists of recruiting executives or an administrative unit
established in SMEs in the manufacturing business. A sample size consists of precise
observational parts for obtaining required data.

A collection of non-probability sampling strategies known as purposive

sampling involve choosing units for research sample based on the possession of
specific qualities. In other words, purposive sampling selects units "on purpose." The
purposive sampling method was chosen as the sampling method for this research
study. Purposive sampling method in which each unit in a population has a
predetermined chance of being chosen. The goal of purposive sampling is to create a
sample that is representative of the population from which it was selected. A
purposive selection strategy was adopted for this study since the group of target
respondents needs to include the judgement from manager or executive of HR in order
to particulate in the survey.

The recruitment or hiring executives from manufacturing SME sectors in Johor

Bahru who have an experience in conducting the recruitment and selection practices in
the current working environment are the subject of this study's data collecting. After
computation was done using goodness-of-fit G*Power software, a sample size of at
least 89 individuals was needed. Appendix explains the calculation from GPower
software with 2 tails input parameters and 3number of predictors represent the
relationship of core competencies, job analysis as well as recruitment alignment with
the recruitment and selection process. As for the sampling method, researcher used the
purposive sampling technique to choose a sample of people. The most common
method of sampling employed in quantitative research is purposive sampling, which

34
aims to find and select examples that are pertinent to the phenomenon of interest
(Palinkas et al., 2015, Gentles, Charles, Ploeg, & McKibbon, 2015).

Figure 3.1 G*Power software sample size determination

3.5 Data Collection Procedure

For the extraction of necessary outcomes in the context of the research,

choosing appropriate methods for data collecting is necessary. Data gathering is done
to gather both primary and secondary data. Obtaining primary data entails learning
new information, which helps the study's goal be achieved. Secondary data is made up
of currently accessible data sources like books, journals, and peer-reviewed online

35
information sources. According to this study, the information being gathered from the
information sources is of a quantitative type (Gast and Ledford, 2009).

A set of questionnaires with Likert scale questions in parts I and II were

delivered electronically via a google form to the respondent’s target.

3.6 Measurement Instrumentation

A structured questionnaire was used to gather since it served as a useful

tool for gathering data and evaluating hypotheses (Cavana, Delahaye, & Sekaran,
2001). Additionally, a large population could be used to gather data in a highly
efficient manner (Saunders, Lewis, & Thornhill, 2009). The questionnaire in this
research study was divided into Part I and Part II, which were its primary sections.
The respondent's information and demographic questions made up Part I.
Demographic questions were included in the questionnaire to better understand the
characteristics of the respondents. The questionnaire will be developed using data
on manufacturing SME hiring practices from the literature of earlier studies based
on the recruitment and selection theory. Questions pertaining to the construct that
positively influence the adoption of recruitment and selection theory were listed in
Part II. The outcome, which will be assessed using a 5 Point Likert scale, will
determine the variables affecting recruitment and selection practices in this research
study. The range is derived by using the following formulas to get the lowest and
maximum length of the 5-point Likert scale. The 5-point Likert scale indication
refers to which they agreed or disagreed with each statement using 5 Likert scale (1)
= strongly disagree; (2) = somewhat disagree; (3) = disagree; (4) = neutral (5) =
agree response framework.

A Likert scale usually offers five options or five points for responses to a
statement or question, allowing respondents to express their level of agreement or
disapproval with the statement or question on a positive-to-negative scale. A Likert
scale makes the assumption that attitudes can be assessed and that the strength or
intensity of an attitude is linear, that is, on a continuum from strongly agree to
36
strongly disagree. Likert scales can also evaluate additional changes, such as
frequency, quality, importance, and likelihood, in addition to assertions of
agreement. Table 3.1 listed the questions and references for this research study.

Table 3.1 Set of questions and references

Construct Question Details of Questions References
indicator
Core CC1 When recruiting new members of D. Mwangi
Competencies staff, I consider the following (2013) (page
(CC) aspects: good understanding of the 54)
organization.
CC2 When recruiting new members of
staff, I consider the following
aspects: Able to communicate
fluently and effectively
CC3 When recruiting new members of
staff, I consider the following
aspects: A person with strategic
thought
CC4 When recruiting new members of
staff, I consider the following
aspects: Innovative person
CC5 When recruiting new members of
staff, I consider the following
aspects: Ability to manage time
well.
Job Analysis JA1 Job Analysis helps the S. Kshatriya
(JA) organization in recruitment, by (2016) (page
assessing applicants to see whether 3)
there is a person organization fit
and ascertains if a candidate has
the required knowledge, skills and
ability or competence.
JA2 Job Analysis helps the
organization in recruitment by
screening application forms for the
minimum qualification, which are
the requirement for successful
performance on the job.
JA3 Job Analysis helps the
organization in recruitment by
conducting a standardized
structured interview based on the
job requirement derived from Job
Analysis
JA4 Job Analysis helps the

37
 organization in recruitment in
decision-making where hiring
decisions will be based on valid
and reliable measurement of
various requirement tested and
derived from Job Analysis.
Recruitment RA1 The recruitment and selection align Mary Argue
Alignment with the organization’s objectives (2015) page 48
(RA)
RA2 I believe the diversity of Mary Argue
organization is a major aspect in the (2015) page
alignment of the organization’s 55
objectives
RA3 I believe the decisions made in the Mary Argue
strategic recruitment and selection (2015) page
process will impact the organization 55
in the future
Recruitment RS1 The recruitment and selection of the
and Selection person are intended for the offered A. Kamran et
(RS) job al. (2015)
RS2 Do the HR personnel’s pay due page 7
attention to the recruitment and
selection methods
or do they follow their own way of
doing it
Do the HR personnel’s pay due
attention to the recruitment and
selection methods
or do they follow their own way of
doing it
Do the HR personnel’s pay due
attention to the recruitment and
selection methods
or do they follow their own way of
doing it
The HR team pay attention to the
recruitment and selection methods
implemented in the organization
RS3 The standards and requirements of
the recruitment and selection
sources or methods applied in the
organization turns out to be feasible

3.7 Questionnaire Design

A questionnaire is a collection of questions or items used to learn more about

the attitudes, experiences, or opinions of respondents. For this study, the questionnaire

38
design was developed for a quantitative data. Table 3.2 shows the questions design of
this research study.

Table 3.2 Question Design

Section Items Sources Number of
questions
A - Organization’s name 4
Demographic Years of working
variables experience N/A
Designation
Age
B – Recruitment and 3
Independent Selection
Variables Core Competencies 5
Job Analysis 4
Recruitment Alignment 3

3.8 Validity and Reliability Test

A measure's consistency is referred to as its reliability. Three types of

consistency are taken into consideration by psychologists: internal consistency, test-
retest reliability, and consistency between researchers (inter-rater reliability). The
reliability analysis technique computes a number of widely used scale reliability
metrics and also gives data on the correlations between the scale's constituent
elements. To measure inter-rater dependability, one can compute intraclass
correlation coefficients. The accuracy with which a test gauges achievement is
shown by its reliability coefficient. It is the share of the variance in test results that
can be attributed to actual scores, or the hypothetical "genuine" score a test taker
would receive if one existed. The most popular internal-consistency coefficient is
Cronbach's alpha. The reliability of this study was evaluated using Cronbach's Alpha
and composite reliability. The criterion to demonstrate sufficient reliability was set at
0.70. (Nunnally and Bernstein, 1978). Cronbach's Alpha values below 0.6 are
considered to be poor (Sekaran and Bougie, 2010).

39
 The term "validity" refers to "the extent to which measures indicate what
they are intended to measure" (Schutt, 1999). KMO is a test used to evaluate how
well the components explain one another in terms of partial correlation between the
variables. Kaiser-Meyer-Olkin (KMO) values around 1.0 are excellent, whereas
those below 0.5 are deemed unacceptable. Most academics now contend that factor
analysis can begin with a KMO of at least 0.80. For this research study, the Bartlett
test and KMO tests will be used to determine the validity of the variables.

3.9 Techniques of Data Analysis

3.9.1 Descriptive Analysis

Data analysis can take many different forms, from diagnostic to predictive.
Descriptive analysis is the most common method used in quantitative study. The
process of utilizing statistical methods to summaries or describe a set of data is
known as descriptive analysis. Descriptive analysis, one of the main types of data
analysis, is well-liked for its capacity to produce understandable insights from
uninterpreted data. The three primary categories of descriptive statistics are
measures of variability, measures of central tendency, and frequency distribution.

Distribution of frequency utilized for numerical data. The frequency or

count of the various outcomes in a data collection or sample is represented by a
frequency distribution. Typically, the frequency distribution is displayed as a table
or graph. The count or frequency of the values' occurrences within an interval,
range, or particular group are provided alongside each entry in the table or graph.
A presentation or summary of grouped data that has been divided into mutually
exclusive classes and the number of occurrences in each class is called a
frequency distribution. It enables the presentation of raw data in a more structured
and orderly manner.

A dataset's descriptive summary utilizing a single value that represents the

center of the data distribution is referred to as having a central tendency. Measures
of central location are another name for measures of central tendency. One of the

40
measurements of central tendency used for this research study are the mean. The
average or most frequent number in a data set is known as the mean, which is
regarded as the most widely used measure of central tendency. In this study, the
researcher calculates the population mean using a sample average. The sample
mean can significantly deviate from the population for tiny samples. The rule of
big numbers states, however, that as the sample size increases, it is more likely
that the sample average will be close to the population value.

3.9.2 Correlation Analysis

Methods of correlation and regression can be used to analyse the nature and
strength of relationships between different variables. Correlation analysis is used to
understand the nature of correlations between two different variables. The Pearson
correlation coefficient, r, shows how distant all of these data points are from this
line of greatest fit (i.e., how well the data points match this new model/line of best
fit). Basically, a Pearson product-moment correlation seeks to draw a line of best fit
through the data of two variables.

This study extends previous work by attempting to further explain the

significance of the linear correlation coefficient in assessing the degree of
multicollinearity and the mediating/moderating function of independent variables in
a model by using Pearson correlation coefficient in SPSS software. This study also
shows how the degree of multicollinearity may be assessed using the correlation
coefficient of two independent variables in a regression model. The degree of
correlation used as a reference in this analysis are stated in below details:

1. Very strong: If the value is between 0.91 to 1, then the correlation is said to
be perfect: as one variable rises, the other tends to follow suit, rising (if
positive) or falling (if negative) (if negative).

2. High: A correlation is considered strong if the coefficient value is between

0.71 to 0.90

41
 3. Moderate: A correlation is considered moderate if the coefficient value is
between 0.41 to 0.70

4. Small but definite relationship: A correlation is considered moderate if the

coefficient value is between 0.21 to 0.40

5. Slight and almost negligible: A correlation is considered moderate if the

coefficient value is between 0.01 to 0.20

3.9.3 Multiple Regression Analysis

Regression analysis is a statistical method for determining if a variable

depends on the dependant and independent variables. Regression analysis can also
give a rough idea of how much a change in one variable would affect another. In
order to determine the relationship between the categorical variables on the
dependent variables of core competencies, job analysis, and recruitment, as well as
the independent variable of recruitment and selection in this study, linear regression
modelling was used in SPSS. From there, the significant of relationship derived in
the hypothesis will be evaluate based on the result.

3.10 Summary

The study's research methodology and strategy were covered in this chapter.
It explained how the respondents were chosen, the structure of questions was created,
and the data gathering process was carried out. The process of data analytics is also
briefly explained in this chapter. By using the proposed sample technique, 89
respondents from SME manufacturing group of HR executives in Johor Bahru area
were selected. After the researcher distributed the questionnaire via online (by using
Google Form platform) via email, the data collection was supposed to take place

42
 within three months. The study's findings are detailed in Chapter 4.

REFERENCES

“ An Investigation on the Recruitment and Selection Practices within SMEs in

Healthcare Sector in Dublin , Ireland ” Deblina Bhaumik MA in Human
Resource Management National College of Ireland Submitted to the National
College of Ireland August 2018, 2018)

Becker, F. G., Cleary, M., Team, R. M., Holtermann, H., The, D., Agenda, N., Title.
Syria Studies, 7(1), 37–72. Retrieved from
https://www.researchgate.net/publication/269107473_What_is_governance/link/
548173090cf22525dcb61443/download%0Ahttp://www.econ.upf.edu/~reynal/Civil
wars_12December2010.pdf%0Ahttps://think-asia.org/handle/11540/8282%0Ahttps
://www.jstor.org/stable/41857625

Kalianna, M., Abraham, M., & Ponnusamy, V. (2016). Effective Talent Management in
Malaysian SMES. The Journal of Developing Area, 50(5), 386–408.

43
Karim, M. M., & Latif, W. Bin. (2021). ####Conceptual Framework of Recruitment and
Selection Process. Article in Journal of Business and Social Sciences Research,
11(02), 18–25. https://doi.org/10.18533/ijbsr.v11i02.1415

Karimi, A., Teimouri, H., Shahin, A., & Barzoki, A. S. (2019). Identification and
ranking of competency-based recruitment system criteria: An empirical case study.
International Journal of Learning and Intellectual Capital, 16(1), 21–39.
https://doi.org/10.1504/IJLIC.2019.096933

N, D. N. B. and C. B. N. R. (2017). A study on recruitment and selection process in

manufacturing industry. Ijariie, 3(4), 3341–3350.

Rawlinson, I. R. (2019). ScholarWorks Strategies to Recruit Skilled Workers in

Manufacturing. Retrieved from https://scholarworks.waldenu.edu/dissertations

44
 APPENDIX A

FACTORS INFLUENCING THE RECRUITMENT AND SELECTION

PRACTICES IN MANUFACTURING SMEs IN MALAYSIA

Survey Questionnaire

Section A: Demographic Profile

In this section, we would like you to fill in some of your personal details. Please tick
your answer and your answers will be kept strictly confidential.

1. Organization’s name :
2. Years of working experience  1 year to 3 years
 4 years to 10 years
 10 years and above
3. Designation :
4. Age  22 to 30 years old
 31 to 40 years old
 41 years old and above

Section B:
This section is seeking your opinion regarding the importance of chatbot. Respondents are
asked to indicate the extent to which they agreed or disagreed with each statement using 5
Likert scale [(1) = strongly disagree; (2) = somewhat disagree; (3) = disagree; (4) =
neutral (5) = agree] response framework. Please circle one number per line to indicate the
extent to which you agree or disagree with the following statements.

No Questions
Disagree
Disagree
Strongly

Strongly
Neutral

Agree

Agree

RS Recruitment and Selection

RS1 The recruitment and selection of the person 1 2 3 4 5

are intended for the offered job

45
RS2 The HR team pay attention to the 1 2 3 4 5
recruitment and selection methods
implemented in the organization
RS3 The standards and requirements of the 1 2 3 4 5
recruitment and selection sources or
methods applied in the organization turns
out to be feasible

No Questions

Disagree
Disagree
Strongly

Strongly
Neutral

Agree

Agree
CC Core Competencies
CC1 When recruiting new members of staff, 1 2 3 4 5
do you consider the following aspects:
good understanding of the organization.
CC2 When recruiting new members of staff, 1 2 3 4 5
do you consider the following aspects:
Able to communicate fluently and
effectively
CC3 When recruiting new members of staff, do 1 2 3 4 5
you consider the following aspects: A person
with strategic thought
CC4 When recruiting new members of staff, do 1 2 3 4 5
you consider the following aspects:
Innovative person
CC5 When recruiting new members of staff, do 1 2 3 4 5
you consider the following aspects: Ability
to manage time well.

No Questions
Disagree
Disagree
Strongly

Strongly
Neutral

Agree

Agree

JA Job Analysis
JA1 Job Analysis helps the organization in 1 2 3 4 5
recruitment, by assessing applicants to see
whether there is a person organization fit
and ascertains if a candidate has the
required knowledge, skills and ability or
competence.
JA2 Job Analysis helps the organization in 1 2 3 4 5
recruitment by screening application forms
for the minimum qualification, which are

46
 the requirement for successful performance
on the job.
JA3 Job Analysis helps the organization in 1 2 3 4 5
recruitment by conducting a standardized
structured interview based on the job
requirement derived from Job Analysis
JA4 Job Analysis helps the organization in 1 2 3 4 5
recruitment in decision-making where
hiring decisions will be based on valid and
reliable measurement of various
requirement tested and derived from Job
Analysis.

No Questions

Disagree
Disagree
Strongly

Strongly
Neutral

Agree

Agree
RA Recruitment Alignment
RA1 The recruitment and selection align with 1 2 3 4 5
the organization’s objectives

RA2 I believe the diversity of organization is a 1 2 3 4 5

major aspect in the alignment of the
organization’s objectives
RA3 I believe the decisions made in the 1 2 3 4 5
strategic recruitment and selection process
will impact the organization in the future

Thank you.

47