Using appropriate techniques the suitable candidates are thus, able to be recruited and selected during their career development (Crawford 2004). It has been argued that in order for the firm to build and sustain the competitive advantage, proper staffing is critical (Wright & Snell 1991, Boxall 1996). Recruitment and selection is a major HRM function as it encompasses all organisational practices and decisions. Recent technological advances, globalisation, social trends and changes within organisations have brought new challenges for recruitment and selection (Rowley & Benson 2002).
To effectively face the new challenges recruitment and selection needs to be integrated with business strategies (Lam & White 1998). Recruitment and selection strategies flow ultimately from the organisation’s mission and strategic objectives (i. e. , the strategies and processes of recruitment and selection must be compatible with business strategies) (Nankervis, Compton & Baird 2002). Social scientists argue that through the integration with business strategies, recruitment and selection help achieve strategic goals and enhance organisational performance (Becker & Gerhart 1996, Youndt, et al. 996, Lewis 2003).
Budhwar (2000), Lam and White (1998), and Shen (2005) suggest that HRM strategic integration should be examined both in strategy formulation and strategy implementation phases of a business. Strategy formulation is concerned with making decisions with regard to an organisation’s mission, vision and short term and long term objectives and plans, while strategy implementation is concerned with aligning the organisation structure, systems and processes to achieve the business strategy (Johnson & Scholes 1999).Past studies have identified a number of indicators of HRM strategic integration. They include: human resource (HR) input into the business strategy through formal and informal consultation channels (Brewster & Larsen 1992, Budhwar 2000, Shen 2005), written HR strategy (Brewster & Larsen 1992, Khatry & Budhwar 2002, Shen 2005), HR planning with a clear set of programmes and policies to implement the HR strategy (Shen 2005), and the existence of the HR department and HR expertise (Bennett, Ketchen & Schultz 1998, Wright, Gardner & Moynihan 2003, Shen 2005).
These ranges of indicators are applicable to HRM practices and are equally applicable to recruitment and selection strategic integration. Recruitment and selection is a major HRM function as it encompasses all organisational practices and decisions. Recent technological advances, globalisation, social trends and changes within organisations have brought new challenges for recruitment and selection (Rowley & Benson 2002).To effectively face the new challenges recruitment and selection needs to be integrated with business strategies (Lam & White 1998). Recruitment and selection strategies flow ultimately from the organisation’s mission and strategic objectives (i. e. , the strategies and processes of recruitment and selection must be compatible with business strategies) (Nankervis, Compton & Baird 2002).
In the strategy implementation phase, the extent of recruitment and selection strategic integration can be gauged through four distinctive indicators.These indicators are: the timely supply of an adequately qualified workforce, effective job analysis and descriptions, effective selection, and the involvement of line managers in the recruitment and selection practices. A key source of uncertainty in the business strategy implementation is whether there is a timely supply of adequate qualified people (Wright & Snell 1991), and to a great extent this uncertainty involves the quality of employees.For instance, a firm might decide to leverage a different human capital pool in terms of skills and education level than its rival firms as a competitive strategy even within the same industry to develop specific capabilities or to develop a HR process advantage (Wright, Dunford & Snell 2001, Boxall & Purcell 2003). An organisation can successfully eliminate this uncertainty if its recruitment and selection policies and practices are strategically integrated with business.
Effectively conducting job analysis and targeting right potential candidates ensures a good match between applicants and the jobs (Delaney & Huselid 1996).Argument has been given that under qualified employees may not able to effectively perform their job positions due to lack of knowledge and competencies, while on the other hand over qualified employees tend to experience less job satisfaction due to their higher qualification than a desired level for a given job (Johnson, Morrow & Johnson 2002). For every job in the organisation, a thorough job analysis, which includes job description and job specifications, is necessary and based on this, an appropriate selection criteria is vital (Plumbley 1991).The job description provides indications of the duties to be undertaken, and the job specification usually prescribes relevant personal qualities and attitudes as well as skills and knowledge required for the job (Plumbley 1991). A range of methods, such as application forms, interviews, formal tests, references, assessment centres and official transcripts are used by firms in the selection process (Anderson & Witvliet 2008). A firm needs to choose a method that is most appropriate to the job positions.HR experts generally drive the staffing process and the purpose of the staffing is to fulfil the requirements of business, and the skill levels presented by each new recruit is likely to be judged better if the line managers are involved in the recruitment and selection process.
Budhwar and Sparrow (1997) suggest that in business strategy implementation the involvement of line managers in the entire staffing process (i. e. , drafting of job descriptions, setting selection criteria and being on the panel of recruitment) is vital for ensuring recruitment and selection to meet business needs.