Description
We are witnessing a change in the nature of jobs. Muscle jobs are disappearing, finger and brain jobs are growing or, to put it more formally, labor-based industries have been displaced by skill-based industries and these in turn will have to be replaced by knowledge-based industries.
IMPACT OF E-RECRUITMENT ON HUMAN
RESOURCE SUPPLY CHAIN MANAGEMENT:
AN EMPIRICAL INVESTIGATION OF SERVICE
INDUSTRY IN INDIAN CONTEXT
Synopsis of the thesis to be submitted in fulfillment of the requirements for
the Degree of
DOCTOR of PHILOSOPHY
IN
MANAGEMENT
By
VINKY SHARMA
Under the Guidance of
Supervisor: Dr. Yaj Medury
Jaypee Business School,
Jaypee Institute of Information Technology, Noida
A-10, SECTOR 62, NOIDA, INDIA
FEBRUARY, 2010
TABLE OF CONTENTS
S. no. Contents Page no.
1. Introduction 3-6
2. Review of Literature 6-13
3. Research Objectives and Hypothesis 13
4. Research Methodology 13-18
5. Data Analysis and Development of model 18-27
6. Conclusions and Implications 27-31
7. Selected References 32-37
8. Annexure I-XIV
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IMPACT OF E-RECRUITMENT ON HUMAN RESOURCE
SUPPLY CHAIN MANAGEMENT: AN EMPIRICAL
INVESTIGATION OF SERVICE INDUSTRY IN INDIAN
CONTEXT
1. INTRODUCTION
1.1 INTRODUCTION
“We are witnessing a change in the nature of jobs. Muscle jobs are disappearing, finger
and brain jobs are growing or, to put it more formally, labor-based industries have been
displaced by skill-based industries and these in turn will have to be replaced by
knowledge-based industries.” -Charles Handy (1984)
Though Charles Handy tracked these radical changes long back in 1984, these touched
India very recently. During the last few years, India has witnessed an unprecedented
economic growth. The service sector is the lifeline for the social economic growth of a
country. It is today the largest and fastest growing sector globally contributing more to the
global output and employing more people than any other sector. In alignment with the
global trends, Indian service sector too is one of the major contributors to both
employment and national income in recent times. It is estimated that in the near future
close to a million new jobs will be created in the services sector.
The hospitality and healthcare services are the largest and rapidly growing industries in
India. Hospitality industry employs over 12 million people, accounting for 8.5 per cent of
the total workforce, and generating over 4 per cent of GNP. Whereas, Healthcare is one of
India’s largest sectors, in terms of revenue and employment, and the sector is expanding
rapidly. During the 1990s, Indian healthcare grew at a compound annual rate of 16%.
Today the total value of the sector is more than $34 billion.
The global economy is fast becoming a reality where organizations will need to find ways
to become more productive, more efficient and more competitive. Firms should entail
themselves to prepare for the big global game and become more efficient and competitive
to deliver high performance. A high-performance business starts with a high-performance
workforce. Therefore, organizations should substantially focus on increasing their
productivity, market share and shareholder value by ensuring that they have the right
people, with the right skills in the right roles. With this significant focus becoming an area
of concern, there is a need for due diligence in recruitment practices. Recruitment
provides the first contact for an organization with its potential employees. An organization
must have an effective recruitment policy and process to inform candidates about the job
openings and persuade them to apply for the available positions.
Research interest in the topic of employee recruitment has increased substantially over the
last thirty years. Recruitment is commonly defined as the process of discovering potential
candidates and of generating a pool of qualified applicants by encouraging qualified
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4
candidates to apply for actual or anticipated job vacancies within the organization [1]. In
the contemporary business environment, companies are faced with a critical challenge to
recruit and retain qualified employees [61]. As a result, the current trend demands a far
more comprehensive and strategic perspective to recruit, utilize and conserve valuable
human resources. There is a need for companies to have a conceptually sound framework
(person: job-fit) and a cost-effective, speedy and convenient system (online testing) at
their disposal to meet their personnel selection needs in a highly competitive environment
[20]. These days, one way of doing so is via online recruitment, a method of attracting job
candidates via the internet [25]. As a practice, it is agreed that e-HRM leads to
considerable changes and therefore should be taken as an important development in the
HR field [64, 63, and 40].
E-recruitment has been an issue of interest over the past ten years. Internet is considered
as the latest tool in hiring. It is a real revolution spreading over the world of job hunting
and hiring. The term online recruitment, e-recruitment, cybercruting, or internet recruiting,
imply the formal sourcing of job information online. The first references to e-recruitment
appear in articles of the mid-1980s [35 and 19]. While systematic reference to e-
recruitment in the HR journals begins almost two decades later, in the mid-1990s, when IT
companies and universities began to use the internet extensively. The closing of twentieth
century has given rise to a vast debate concerning the response of HRM to the changing
external and internal environment of the firm. Online job search and recruitment activity
have vastly expanded since the year 2000. This was the period during which a truly
distinct online recruitment paradigm emerged and first attained a level of critical mass.
However, despite of its popularity, the research in the area has not as yet become as
dominant as was predicted by many researchers and practitioners.
E-recruitment can be divided into two types of uses: corporate web site for recruitment
and commercial jobs boards (such as monster.com) for posting job advertisements [79].
Corporate websites are a company’s own website with a link for job posting/career
options where candidates can log into for current openings. If the company advertises its
vacant positions on other website that specialize in recruitment such as - naukri.com,
timesjob.com, monster.com, etc., the companies would be adopting commercial job
boards for recruitment. Firms generally adopt a recruitment method that suits their size
and budget for recruitment. Further, the size and nature of the fraction that applies for an
organization’s vacancies will be affected by how (and to whom) the organization
communicates its vacancies [23].
In times of fierce competition, being able to attract high-quality human resources is
considered a true competitive advantage for organizations [34, 90, and 100]. This
attraction of potential employees and to get them to accept offers of employment has
given recent recognition to the important role that recruitment plays in assuring
organizational success [8, 38, 75, and 83]. It presumes that the approach an organization
takes to recruitment makes a difference and assumes that recruitment outcomes depend on
something more than the existing dynamics of labor supply and demand.
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With the advent of current organizational need for resourceful recruitment structure,
companies are beginning to understand that recruiting is fundamentally an inventory
problem [47].The transformation phase with the supply chain perspective, encompasses
the planning and management of all activities involved in sourcing, procurement,
conversion, and logistics management activities (American professional association) and
provides a source to integrate the discipline with human resource recruitment.
Importantly, supply chain management also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third-party service providers, and
customers (various layers). Akin to this, human resource supply chain management
(HRSCM) process also involves sourcing, procurement, conversion, and logistics
activities with the help of coordination and collaboration with channel partners (head
hunters, placement consultants, web sourcing etc.). In the supplier-customer business
arrangement, the effective way for suppliers (placement agencies, web sources) to service
customers (company), is to become more responsive. An important factor contributing to
responsiveness is time compression in the supply chain [82]. Not only can the company
(customers) be serviced more rapidly but also the degree of flexibility offered can be more
and, furthermore, the cost should be less because the pipeline is shorter.
The present study is a modest effort in this direction. It aims to expand the existing body
of knowledge in the area by describing the development of human resource recruiting
discipline with a supply chain perspective that is fundamentally a different paradigm from
the traditional approach. As noted by Cappelli (2008), those who study supply chain
management ask questions like, ‘Do we have the right parts in stock?’ ‘Do we know
where to get these parts when we need them?’ ‘Does it cost a lot of money to carry
inventory?’ These questions are just as relevant to companies that are trying to manage
their talent needs [18]. In other words, the principles of supply chain management can be
applied to human resource management which takes human resource recruiting well
beyond the scope that the originator of the discipline had visualized. This will provide
new emphasis and scope to the notion that recruitment is an ongoing activity and that it is
not a solitary errand rather a layered and multifaceted process with internet as a major
facilitator.
Given the importance of recruitment, it is remarkable that little research has been
conducted into the decision making processes in organizations that forms the basis of
recruitment strategy.Previous research studies that have focused on e-recruitment may not
hold true for an emerging market like India. To the best of the researcher’s knowledge no
such study has been conducted in Indian context that could bring out any strong empirical
results. Hence, the research examines the impact of e-recruitment on human resource
supply chain management
1.2 RELEVANCE OF THE STUDY
Irrespective of the research path followed, the majority of researchers have focused on the
manufacturing sector. For example, Arthur (1994) focused on steel mini-mills, MacDuffie
(1995) focused on the auto industry, and Katou and Budhwar (2006, 2007) focused on the
industrial sector as a whole [5, 67, 51, and 52]. The literature also highlights that most
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studies have been conducted in the USA and the UK. Recently, a few investigations have
been initiated in other parts of the world, especially in emerging markets such as China
[27 and 2] and transitional economies such as Slovenia [106].
Furthermore, there has generally been a tendency for the services sector to be overlooked
in HRM research [94, 66, and 45]. This lack of research relating to services was due to the
fact that the services sector was a very heterogeneous sector comprising financial
companies, retailing operations, transport operation, and hospitality [46]. Thus, the
heterogeneity of the sector was a serious obstacle to researchers and any attempt to
investigate the services sector as a whole was meaningless unless specific control
variables were properly developed and a representative sample of the organizations
belonging to the services sector was selected [45]. Considering the above, i.e. “it seems
unlikely that one set of HR practices will work equally well no matter what the context”
[36, p.178], more research is needed in the services sector and in different contexts. To fill
this gap and to further examine the impact of e-recruitment, it is important to conduct
research in non-US/European contexts and in non-manufacturing sectors.
1.3 AIM OF THE STUDY
The aim of this research is to examine the impact of the e-recruitment on the quality of
applicants, cost and time involved in acquiring applications, wider choice of applicants
and employees job search behavior and the development of the resulting conceptual
model. Indeed the majority of these variables have been examined as distinct entities and
not simultaneously as components of a human resource system. The lack of research and
knowledge in this area may have limited our understandings of why and how human
resource systems impact recruitment outcomes. Nevertheless, although it is well accepted
that e-recruitment leads to increase in the chance to find the right candidate [33],
facilitates geographical spread [22, 71, 74], quicker turn-around time/cost savings [33, 80,
107] and higher quality of applicants [9], there is a great need for additional empirical
evidence to understand the impact of e-recruitment.
The study undertaken looks at the issue from emerging markets perspective by focusing
exclusively on Indian hospitality and healthcare services. The major objective of this
research is to empirically examine the impact of e-recruitment on quality of applicants,
cost and time taken for employee acquisition, wider choice of talent, and employee job
search behavior.
2. REVIEW OF THE LITERATURE
There is a voluminous research base and bewildering volume of advice to guide the
personnel practitioner on almost every other aspect of the recruitment role and the
importance of recruitment process, yet if one peruses reviews of recruitment research [8,
13, 90, and 103]; one finds a mix of optimism and pessimism. This section on literature
review is focused on various theories that are relevant to our study.
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2.1 GENERAL ADVANTAGES AND DISADVANTAGES OF E-RECRUITMENT
ADVANTAGES
(i) Geographical spread [22, 71, and 74].
(ii) Larger audience [3, 10, 17, 50, 60, 80, 107].
(iii) Greater chance to find right candidate quicker/with greater effectiveness [33].
(iv) 24/7 - no waiting for issue dates [22, 80].
(v) Quicker turn-around time/cost saving [33, 80, 107].
(vi) Relatively cheap [7, 17, 31, 33, 57, 74, 92].
(vii) Higher quality of applicants [9]
(viii) Better match of workers - vacancies [32].
(ix) Shift from manual screening to using ‘HRM expertise’ [80].
(x) Positive effect on corporate image/up-to-date image [33, 80].
(xi) Efficiency gains
(xii) Cost saving/saving personnel costs [80].
(xiii) Access passive jobseekers [33].
(xiv) Target candidates/ Address niche markets [33, 80].
(xv) Reduction of unqualified candidates [80].
(xvi) More opportunities for smaller companies [80].
DISADVANTAGES
(i) Higher expectations regarding relocation costs [15].
(ii) Development fees for small companies
(iii)Name recognition required (buy banner space etc.) [7, 33].
(iv) Outdated résumés [99].
(v) Discrimination/privacy [9, 26, 30, 80, 81, 95].
(vi) Internet not the first option for applicants [31, 33].
(vii) Overwhelming number of candidates [15, 33, 42, 62, 9].
(viii) Huge number of unqualified candidates [53, 37, 48].
(ix) Time consuming sifting of application forms [73].
(x) Poor segmentation of the market [80].
(xi) Transparency of data [80].
2.2 QUALITY OF CANDIDATES
A study conducted by Berger and Ghei (1995) in his study on a facet of hospitality hiring
concluded that the success of the hotel industry depends on the quality of its employees
and their effective management in order to assist the organization to achieve its objectives
[12].
Mencken & Winfield (1998) explored the advantages and disadvantages of informal and
formal recruiting practices in external labour markets. The authors found that quality was
a strong motivator than cost for informal recruiting. The findings from the regression
analysis also demonstrated that the quality of applicants was more salient for hiring
managers in the private sector [72].
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Smith (1999) had worked upon e-recruitment where he had tried to conceptualise that
internet helps employer’s better target prospective employees. The author mentioned that
the career web, which small companies may consider expensive, could still be less costly
than multiple newspaper ads [95].
Galanaki (2002) had conducted a descriptive study on the decision to recruit online,
involving 99 UK IT companies whose shares were traded in London stock exchange. A
survey was carried out, in the form of a postal questionnaire, followed by an interview to
which 34 companies replied. The author found that internet agencies provide the company
with fewer but substantially better applicants than traditional recruitment agencies [33].
A study conducted by Connerley, Carlson, & Mecham (2003) on the evidence of
differences in applicant pool quality addressed the research need by examining the
attraction outcome of firms competing head-to-head for recruits for similar positions.
Results of an analysis suggest that applicant quality can vary substantially within and
across job families [24].
A research by Matthews (2006) on the recruitment of law students by the United States
Internal Revenue Service described how by moving up the start data of its campus
recruitment efforts it was able to fill jobs more easily and with better quality individuals
[69].
2.3 WIDER CHOICE OF APPLICANTS
Mencken & Winfield (1998) had explored the advantages and disadvantages of informal
and formal recruiting practices in external labour markets. The authors found that hiring
managers do indeed view the volume of applicants as the central advantage of formal
recruiting techniques [72].
Chapman and Webster (2003) in their survey research on the use of technologies in
recruiting, screening, and selection processes for job candidates conducted in USA found
that most organizations implemented technology based recruitment and selection tools to
improve efficiency, enable new assessment tools, reduce costs, standardize systems and
expand the applicant pool [21].
According to the Pew Internet Research reported by NAS insights (2006), about 72 per
cent of American adults were online. That translated to over 145 million people. This was
a wide audience, and the Internet proved to be an integral part of employee recruitment
because there was no faster, simpler, or more cost effective way to reach thousands of
qualified candidates. In fact, 44 per cent of online Americans were looking for
information about a job. The Internet allowed HR Managers to reach these candidates 24
hours a day, 7 days a week [76].
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2.4 TIME AND COST TAKEN FOR ACQUIRING APPLICATIONS.
A study conducted by Martinez and Martineau (1998) on rethinking human resources
stated that when health reforms aims at efficiency savings or overall cost reduction, they
go by changing the way in which staff are employed [68].
Galanaki (2002) had conducted a descriptive study on the decision to recruit online,
involving 99 UK IT companies whose shares were traded in London stock exchange. A
survey was carried out, in the form of a postal questionnaire, followed by an interview to
which 34 companies replied. The author found that of the factors that influenced a
companies’ decision making, cost-effectiveness and high response rate came first,
followed by access to passive job seekers and the marketing purpose of online recruiting
[33].
The study conducted by Boswell, Roehling, LePine, & Moynihan, (2003) focused on
opportunities to meet people and site visit arrangements. In terms of the timeliness of
actions taken by an employer during the recruitment process, Boswell and other authors
documented the importance of timely recruitment actions. Their results showed that
receiving prompt responses from HR Managers resulted in job candidates having a more
positive view of the employer [11].
A conceptual paper on Managerial challenges of e-recruitment: extending the life cycle of
new economy employees by Smith and Rupp (2004), examined the application of
technology to recruiting and retaining knowledge workers in an e-commerce, information-
intensive environment. The authors reported that e-recruitment as a general process is job
specific and offers computer-assisted screening interviews and statistical prediction to aid
in reducing recruiting costs, time-to-hire and employee turnover [96].
Hadass (2004) in his research on the effect of internet recruiting on the matching of
workers and HR Managers developed a model of recruitment in which job seekers have
private information about their qualification for different jobs and firms possess imperfect
screening technologies. The implications of the model were empirically examined using
personnel data from US-based multinational manufacturing firm with more than 15000
employees. The adoption of e-recruitment was modeled as reducing application costs to
workers and improving screening technology for firms. He concluded that firms may
adopt e-recruitment strategies because of the direct reduction in recruiting costs and
because of competition among HR Managers for qualified hires [41].
The meta-analysis of the research conducted by Chapman, Uggerslev, Carroll, Piasentin,
& Jones, (2005) concluded that timely responses from HR Managers were linked to
greater applicant attraction to a job with an organization [21].
As reported by Aqayo Research on efficient talent acquisition through e-recruitment
(2008), a survey was conducted among several hiring managers at NRG Engineering Pte
Ltd.; a consulting company specialized in the Oil and Gas industry, to identify how the E-
Recruitment software they used enhanced efficiency of their recruitment activities. All
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unanimously agreed that using Applicant Tracking Systems significantly reduced the time
spent on each recruitment activity, and additionally smoothened the recruitment process
[6].
A research conducted by Verhoeven and Williams (2008) reports on a study into internet
recruitment and selection in the United Kingdom. The study discussed the advantages and
disadvantages as identified in literature and considered those against the views of HR
Managers in UK. It obtained its data from a survey through postal questionnaire followed
by an administered questionnaire to 83 organizations. The author reported that a quarter of
UK HR Managers found internet recruitment to be effective in delivering suitable
candidates. Furthermore, one out of every five UK HR Managers perceived the tool to be
efficient, and only a slightly higher percentage of HR Managers indicating cost-saving and
acknowledging that internet recruitment tools as relatively cheap in comparison with more
traditional tools [102].
A survey conducted by Williams (2009) on E-recruitment showed dwindling recruitment
spends focused on web-based recruitment at the expense of traditional methods. The
author also reported that online methods proved far more popular, as two-thirds (66 per
cent) of the HR professionals surveyed said that the jobs section of their own company’s
website was used as a recruitment tool for most jobs [104].
2.5 EMPLOYEE JOB SEARCH BEHAVIOUR IN CONTEXT OF E-
RECRUITMENT.
A study by Mau and Kopischke (2001) on job search methods, job search outcomes and
job satisfaction of college graduates, found that there was significant correlation between
the number of job search methods used and the number of interviews and suggested that
the students used a variety of job search methods rather than relying on a single method
[70].
Dineen, Ash, and Noe (2002) examined another aspect of web-based recruitment, namely
the possibility of providing tailored online feedback to candidates. In this experimental
study, students were asked to visit the career web page of a fictitious company that
provided them with information about the values of the organization and with an
interactive “fit check” tool. In particular, participants were told whether they were a
“high” or a “low” fit with the company upon completion of a web-based person-
organization fit questionnaire. Participants receiving feedback that indicated high P-O fit
were significantly more attracted to the company than participants receiving no feedback.
Similarly, participants receiving low fit feedback were significantly less attracted than
those receiving no feedback [28].
A research on Internet job search and unemployment durations by Kuhn and Skuterud
(2004) had tried to find out which types of unemployed workers looked for work online
and whether internet searchers became reemployed more quickly. The authors concluded
that internet job search is more common among workers with observed characteristics that
are usually associated with faster reemployment and internet job search does speed
reemployment. The authors pointed out that, internet job search might significantly
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improve search outcomes on dimensions such as job quality that they had not measured in
their research [58].
Jansen, Jansen and Spink (2005), gave implications for online job seeking and recruiting
in their paper on using the web to look for work. The authors focused upon three specific
research questions: how do people search for job-related information on the web? How
effective are these searches? And how likely are job seekers to find an appropriate job
posting or application? The data used to examine these questions come from job seekers
submitting job-related queries to a major web search engine at three points in time over a
five-year period. Results of their study indicated that individuals seeking job information
generally submitted only one query with several terms and over 45 percent of job-seeking
queries contained a specific location reference. Of the documents retrieved, findings
suggested that only 52 per cent were relevant and only 40 per cent of job-specific searches
retrieved job postings [49].
Ng and Burke (2006) in their study on the next generation at work explored the views,
career expectations, and job search behaviors among a sample of business students. The
authors conducted a field survey involving 20,771 students across Canada to understand
the views of university students on jobs, organizations, careers and perception of their
organizations. The study using multiple regression analysis found that cooperative
students appear to have more realistic expectation, have better insights into their own
abilities and desires, and report higher self-confidence. It also reported that the
respondents had low expectations that their campus career offices would get them a job,
and expected to use the internet more frequently in their job searches. This suggested a
shift away from traditional recruitment mediums to more contemporary approaches such
as internet [77].
Breaugh (2008) had discussed employee recruitment and its important areas for future
research, where he had reviewed research on recruitment topics that had received
considerable attention (e.g., recruitment methods, realistic job previews). He had also
addressed topics (e.g., targeted recruitment, the site visit) that had received relatively little
attention but that had the potential to be quite important. The author had found that many
job applicants: (a) had an incomplete and/or inaccurate understanding of what a job
opening involved, (b) were not sure what they wanted from a position, (c) did not have a
self insight with regard to their knowledge, skills, and abilities, and (d) couldn’t accurately
predict how they would react to the demands of the new position [14].
1368 students and graduates were surveyed on their experiences of online applications, for
the GTI online recruitment student user survey 2009. The questionnaires were sent online
and comprised seven pages of quick to answer questions. 667 completed the
questionnaires in full (55 per cent) while 1027 provided partial responses. The results
highlighted that internet systems were now generally recognized as the mainstream way of
making an application and that applicants were skilled in their use. The majority of
comments were positive. When asked what they liked, students mentioned speed,
convenience/cost-effectiveness, fairness and presentation [39].
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2.6. ISSUES EMERGING FROM LITERATURE REVIEW
From the literature review, the following pertinent issues emerge:
(i) With the internet, all types of jobs and employees could be easily found and acquired
to fill specific needs [59].
(ii) Internet recruitment improves corporate image, reduces recruitment cost, reduces
administrative burden and employs better tools for the recruitment team [55].
(iii) Internet can assist employees in finding employment opportunities faster and easier
than ever before [59].
(iv) Web sites are viewed as a very effective recruitment method and are perceived as
generating a large number of job applicants at relatively low cost [20, 98].
(v) With the introduction of the internet, the recruitment process has become easier [102].
(vi) Complexity and the dynamic nature of recruitment practices require continuous
updation of knowledge, skills and abilities.
(vii) Recruitment practices differ in different organizations classified based on
organization type, size etc.
(viii) Better recruitment practices have impact on image of the organization and ability to
fill the vacancies more promptly.
(ix) In service sector- recruitment and retention have been acknowledged to be
problematic and increasingly a response has been to “cast the net more widely” [85].
(x) Most customers who defect from a service business “blame indifferent or unhelpful
employees” [91].
According to a study conducted by Gerry Crispin, principal of staffing for CareerXroads,
an HR consulting firm, "The use of the Internet for job searches has grown and will
continue to grow." Online recruitment market today is worth over $7.1 billion, according
to HR.com. Online recruitment was rated the preferred way to find a job, with 78 per cent
satisfied with the outcome compared to 54 per cent who opted for the traditional methods.
The review of literature on e-recruitment brings forth the paucity of empirical studies
especially in Indian context. A review of current literature indicates that the use of the
Internet and thus Internet technology is changing [56]; transforming [81, 93, and 101] and
revolutionising the way in which human resource departments recruit job candidates.
Nevertheless, very limited research has been carried out in this area to date. Young and
Weinroth (2003, p.11) refer in this respect to “the currently minimal field of E-recruitment
literature [105], while Lievens et al. (2002, p.586) describe it as “very scarce” [64].
Furthermore, existent literature in the areas focuses mainly on the United States of
America (USA) rather than on European and Asian countries. Reasons for this might be
the relative newness of the topic, the rapid pace of change which makes information
quickly out of date [9] and the advancement of the practice in the USA
The present study is oriented to examine the impact of internet e-recruiting on importance
of quality, wider choice, resources and employee job search behaviour. The study makes a
comparative analysis of e-recruitment practices in Indian service industry at two levels i.e.
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organization type and organization size respectively. The results help to describe the
phenomenon and thus aid in a process that is essential for theory building.
3. RESEARCH OBJECTIVES AND HYPOTHESIS:
3.1 RESEARCH OBJECTIVES
The study is focused on achievement of following five objectives:
1. To assess the impact of e-recruitment in terms of quality of the applicants.
2. To study the impact of e-recruitment on cost and time taken for employee acquisition.
3. To analyze the impact of e-recruitment in providing a wider choice of talent.
4. To analyze the impact of e-recruitment on employee job search behavior.
5. To develop a model on HRSCM with a decision-support capability in an Internet
environment.
3.2 FORMULATION OF HYPOTHESES
Drawing on the existing conceptual and empirical framework, the present study attempts
an empirical examination of the comparative analysis of E-recruitment practices and their
relationship with perceived importance of quality, resources utilized and providing wider
choice among top management and employees. The Hypotheses of the study are:
1. There is a significant difference about perceived importance of advantage,
effectiveness, information and efficiency of e-recruitment between Hospitality and
Healthcare Services; Small and large scale organizations; HR Managers and employees.
2. Advantage, effectiveness, information and efficiency of e-recruitment have significant
impact on suitability, talented database, and targeting right people at all three levels
3. Advantage, effectiveness, information and efficiency of e-recruitment have significant
impact on annual cost, external cost, overall time, processing applications and recruitment
cycle time at all three levels.
4. Advantage, effectiveness, information and efficiency of e-recruitment have significant
impact on entrants, international candidates, accessibility of candidates, and qualified pool
at all three levels.
5. Among employees, HR managers and general managers/other senior managers, there is
a significant difference in perceived importance of Suitability, talented database, and
targeting right people; Annual cost, external cost, overall time, processing applications
and recruitment process time; Entrants, international, accessible, and qualified pool
4. RESEARCH METHODOLOGY
This section discusses the research design and the methodology adopted in the present
study. It also outlines the development of tools while standardizing them scientifically
establishing validity and reliability. Quantitative analysis of data was done using statistical
tools wherever applicable. This section further elaborates on the research design used in
the present study including details of sample, development of research tools, instruments,
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and extraction of variables, data collection procedure and the statistical techniques
employed for data analysis.
4.1 RESEARCH DESIGN
A 2x2x2 factorial design was used as the research design. The research design is presented
in Figure 1. In this study, structured questionnaires A, B, C were developed to identify and
assess perceived quality of employees and wider choice through e-recruitment, resources
utilized for e-recruitment, and employee job search behavior respectively. Detailed
procedure for developing tool is explained in ensuing discussion.
Figure 1: Research Design
Organization (360)
Hospitality & Tourism (180) Health Care (180)
Small
Size
Small
Size
Large
Size
Large
Size
HR
Manager
Employees
HR
Manager
Employees
HR
Manager
Employees
HR
Manager
Employees
Vinky Sharma, JBS, JIIT, Feb’2011
15
4.2 THE DATA AND SAMPLE
4.2.1 THE DATA
The research is analytical and empirical in nature and makes use of secondary and
primary data. The secondary data was sourced from Emerald, Jstor, Ebsco host, etc.
Primary data was collected from HR managers/professionals, and employees. A third
category of respondents (sample) was taken which constituted people who do not
influence or participate in the process of recruitment directly but are significant
stakeholders. They consisted of General Managers, and other senior functional managers
of the organization.
4.2.2 THE SAMPLE
As derived from the literature, Indian service industry was classified using two criteria,
viz; organization type: if the organization operates in hospitality or in health care services
and organization size: if the organization is individual/small size or chain/large size. Size
is measured in terms of the number of people employed by the company [95].
Respondents included employees, HR managers of the organizations and other
general/senior managers to test different facets of e-recruitment and its impact on human
resource supply chain management. In the present study, data was collected from the
organizations located in National Capital Region of India.
4.2.3 SAMPLING CRITERIA
Equal distribution of respondents between Indian hospitality and health care organizations
as well as between small and large organizations was ensured. All efforts were made to
ensure that the organizations included in the present study met with the above criteria.
Among respondents only those HR managers/professionals were selected who are
responsible for the recruitment activity of the organization. Employees were the persons
from the same organizations working at the level of 0-1 year, 2-5 years and 5 and above
years of experience for comparison purpose. General and other senior managers were
those senior managers who did not have links with HR department, however could be
involved in recruiting activities especially in case of small organizations where no
separate HR departments exist.
4.3. DEVELOPMENT OF RESEARCH TOOLS
As the present study aims at making a comparative analysis of e-recruitment and its
impact on human resource supply chain management, one of the major tasks associated
with this study was the development of questionnaires to be administered. Due to the non-
availability of a valid tool and enough research in the Indian context, items for quality of
employees, cost and time involved and wider choice through e-recruitment were consulted
from various related articles and literature for the basic framework.
Vinky Sharma, JBS, JIIT, Feb’2011
16
Three questionnaires were developed for the present study. Survey Questionnaire A:
Perceived quality of employees and wider choice through e-recruitment was developed to
measure perceptions about quality of employees to make sure a good fit with the company
as well as getting ample number of applications from diverse geographical locations.
Survey Questionnaire B: Resources utilized for e-recruitment was developed to measure
all costs that are involved in acquiring applications from the prospective employees and
the duration involved in acquiring applications from the prospective employees. Survey
Questionnaire C: Employee job search behaviour was developed to measure employee
job search behaviour about e-recruitment in terms of quality, wider choice, time and cost
involved in e-recruitment. The questionnaire had high face validity. The content validity
(which concerns the relevance of the questions asked to the quality being measured) of the
questionnaire was ensured through the use of judges at different stages during its
development.
4.3.1 PILOT STUDY
A pilot study was performed for all the three questionnaires on a sample of 100
respondents. A pilot, or feasibility study, is a small experiment designed to test logistics
and gather information prior to a larger study, in order to improve the latter’s quality and
efficiency. A pilot study can reveal deficiencies in the design of a proposed experiment or
procedure and these can then be addressed before time and resources are expended on
large scale studies. For the purpose of the present study, the questionnaires were pre tested
on a sample of 100 respondents. These respondents did not form a part of the sample of
the main study. The aim of pre-testing was (i) to check the reliability and validity of the
questionnaire (ii) to ascertain the time required to complete the questionnaire (iii) to check
the adequacy of response categories formulated and (iv) to check the overall
appropriateness of the questions. The questionnaire was discussed with respondents as
well. Thereafter, the same sample was approached after three months to establish the
consistency of the questionnaire. The questionnaire was also validated by conducting
factor analysis and indentifying appropriate parameters.
4.3.2 SCORING OF THE QUESTIONNAIRES
Survey Questionnaire A was rated on a five point scale where strongly disagree was coded
as ‘1’, disagree was coded as ‘2’, neutral was coded as ‘0’, agree was coded as ‘3’, and
strongly agree was coded as ‘4’. Survey Questionnaire B was also scored on a five point
scale where very high was coded as ‘1’, high was coded as ‘2’, neutral was coded as ‘0’,
low was coded as ‘3’, and very low was coded as ‘4’. Survey Questionnaire C was also
rated on a five point scale where responses were coded from 1 to 4 in order of their
desirability.
4.3.3 VALIDATION AND STANDARDISATION
Nature of data and requirements of analysis dictated that data should be standardized. As
survey questionnaire A and B were about the perception of people toward e-recruitment,
quality, wider choice, cost and time involved in recruiting, it was imperative to use data
Vinky Sharma, JBS, JIIT, Feb’2011
17
reduction methods to identify significant differentiating components/variables. Factor
Analysis was used for this purpose.
4.3.4 FACTOR ANALYSIS
Factor Analysis is the technique primarily used for data reduction or structure detection.
The purpose of data reduction is to remove redundant (highly correlated) variables from
the data and replacing them with a smaller number of uncorrelated variables. The purpose
of structure detection is to examine the underlying (or latent) relationships between the
variables.
The principal components method of extraction was used in the present study as it finds a
linear combination of variables (a component) that accounts for as much variation in the
original variables as possible. It then finds another component that accounts for as much
of the remaining variation as possible and is uncorrelated with the previous component,
continuing in this way until there are as many components as original variables.
Questionnaire Aa (Perceived quality of employees and wider choice through e-
recruitment-E-recruitment), Questionnaire Ab (Perceived quality of employees and wider
choice through e-recruitment-Quality), Questionnaire Ac (Perceived quality of employees
and wider choice through e-recruitment-Wider choice), Questionnaire Ba (Resources
Utilized for E-Recruitment-Cost), Questionnaire Bb (Resources Utilized for E-
Recruitment-Time) were separately treated for extraction purpose.
4.4 RESEARCH TECHNIQUES
4.4.1 MULTIPLE ANALYSIS OF VARIANCE
A two step multivariate procedure was employed where the data was first subjected to
a factor analysis and then multiple analysis of variance was performed on extracted
factors.
In the first step, a set of dimensions (unobservable attributes) were measured
by relating them to observable variables using factor analysis. In the second step, the
ef f ect of different independent variables and their interaction was estimated using
MANOVA. Advantage, effectiveness, information and efficiency were the dependent
variables and organization type, organizational size and respondent category were the
fixed factors.
4.4.2 MULTIPLE REGRESSION ANALYSIS
A two step multivariate procedure was employed where the data was first subjected to
a factor analysis and then multiple regression was performed on extracted factors.
In the
first step, a set of dimensions (unobservable attributes) were measured by relating
them to observable variables using factor analysis. In the second step, the relationship
between dimensions of quality, cost, time and wider choice and dimensions obtained for
e-recruitment was estimated using regression analysis with dummy variables. In the
present study, dummy variables measured the two opposite options at three levels. Value 1
meant the practice coincides with that and value 0 meant the opposite case. Organizational
Vinky Sharma, JBS, JIIT, Feb’2011
18
type referred to hospitality services (value 1) or healthcare services (value 0).
Organization size referred to large size (value 1) or small size (value 0). Respondent
category referred to HR Managers (value 1) or employees (value 0). Suitability of
candidates, talented database, targeting right people, annual cost, external cost, overall
time, processing applications time, recruitment cycle time, wider choice for entrants,
wider choice for international candidates, accessibility of candidates, qualified pool were
the dependent variables and advantage, effectiveness, information and efficiency were the
independent variables.
5. DATA ANALYSIS AND DEVELOPMENT OF THE MODEL
5.1. FACTOR ANALYSIS
Table 1 (refer t o Annexure 1) shows Kaiser-Meyer-Olkin measure of sampling adequacy
values. It is the measure that judges the sampling adequacy. The value obtained is more
than 0.60 which ensures that the sample size was adequate to apply Factor Analysis.
5.2 FACTOR EXTRACTION
Principal Component Analysis method was used to extract the factors. The Table 2 (refer
to Annexure 1) shows the factor pattern matrix, which highlights variance exhibited by
extracted factors. Generally, the identification of the factors is determined by the factor
loadings, and the relationship of the factor with the variable is based on the signs of factor
loadings. A factor loading is simply the correlation of an original variable with factor.
As suggested by Dillion and Goldstein (1984), variables with factor loadings greater
than absolute value of 0.30 or more are considered significant and, thus, used in labeling
of factors. As shown in the factor pattern matrix a set of 4, 3, 4, 2, and 3 factors were
extracted. These factors were labeled as Factor of e-recruitment, Factor of quality of
applicants, Factor of wider choice of candidates, Factor of cost and, Factor of t i me.
5.3 MULTIPLE ANALYSIS OF VARIANCE
The Table 3 (refer to Annexure 1) shows the parameters for analysis, which highlight the
dependent variables and fixed variables.
5.3.1 RESULTS FOR ORGANIZATIONAL TYPE
There was a significant effect of the organizational type (Hospitality and Healthcare
services) on the combined dependent variable e-recruitment, F (4,355) =11.612, p.013; Information through e-recruitment (INF_IR), F (1,358) =2.082, p>.013; and
Efficiency of e-recruitment (EFC_IR), F (1,358) =3.990, p>.013. Only Advantages of E-
Vinky Sharma, JBS, JIIT, Feb’2011
19
recruitment (ADV_IR), F (1,358) =31.619, p
We are witnessing a change in the nature of jobs. Muscle jobs are disappearing, finger and brain jobs are growing or, to put it more formally, labor-based industries have been displaced by skill-based industries and these in turn will have to be replaced by knowledge-based industries.
IMPACT OF E-RECRUITMENT ON HUMAN
RESOURCE SUPPLY CHAIN MANAGEMENT:
AN EMPIRICAL INVESTIGATION OF SERVICE
INDUSTRY IN INDIAN CONTEXT
Synopsis of the thesis to be submitted in fulfillment of the requirements for
the Degree of
DOCTOR of PHILOSOPHY
IN
MANAGEMENT
By
VINKY SHARMA
Under the Guidance of
Supervisor: Dr. Yaj Medury
Jaypee Business School,
Jaypee Institute of Information Technology, Noida
A-10, SECTOR 62, NOIDA, INDIA
FEBRUARY, 2010
TABLE OF CONTENTS
S. no. Contents Page no.
1. Introduction 3-6
2. Review of Literature 6-13
3. Research Objectives and Hypothesis 13
4. Research Methodology 13-18
5. Data Analysis and Development of model 18-27
6. Conclusions and Implications 27-31
7. Selected References 32-37
8. Annexure I-XIV
Vinky Sharma, JBS, JIIT, Feb’2011
3
IMPACT OF E-RECRUITMENT ON HUMAN RESOURCE
SUPPLY CHAIN MANAGEMENT: AN EMPIRICAL
INVESTIGATION OF SERVICE INDUSTRY IN INDIAN
CONTEXT
1. INTRODUCTION
1.1 INTRODUCTION
“We are witnessing a change in the nature of jobs. Muscle jobs are disappearing, finger
and brain jobs are growing or, to put it more formally, labor-based industries have been
displaced by skill-based industries and these in turn will have to be replaced by
knowledge-based industries.” -Charles Handy (1984)
Though Charles Handy tracked these radical changes long back in 1984, these touched
India very recently. During the last few years, India has witnessed an unprecedented
economic growth. The service sector is the lifeline for the social economic growth of a
country. It is today the largest and fastest growing sector globally contributing more to the
global output and employing more people than any other sector. In alignment with the
global trends, Indian service sector too is one of the major contributors to both
employment and national income in recent times. It is estimated that in the near future
close to a million new jobs will be created in the services sector.
The hospitality and healthcare services are the largest and rapidly growing industries in
India. Hospitality industry employs over 12 million people, accounting for 8.5 per cent of
the total workforce, and generating over 4 per cent of GNP. Whereas, Healthcare is one of
India’s largest sectors, in terms of revenue and employment, and the sector is expanding
rapidly. During the 1990s, Indian healthcare grew at a compound annual rate of 16%.
Today the total value of the sector is more than $34 billion.
The global economy is fast becoming a reality where organizations will need to find ways
to become more productive, more efficient and more competitive. Firms should entail
themselves to prepare for the big global game and become more efficient and competitive
to deliver high performance. A high-performance business starts with a high-performance
workforce. Therefore, organizations should substantially focus on increasing their
productivity, market share and shareholder value by ensuring that they have the right
people, with the right skills in the right roles. With this significant focus becoming an area
of concern, there is a need for due diligence in recruitment practices. Recruitment
provides the first contact for an organization with its potential employees. An organization
must have an effective recruitment policy and process to inform candidates about the job
openings and persuade them to apply for the available positions.
Research interest in the topic of employee recruitment has increased substantially over the
last thirty years. Recruitment is commonly defined as the process of discovering potential
candidates and of generating a pool of qualified applicants by encouraging qualified
Vinky Sharma, JBS, JIIT, Feb’2011
4
candidates to apply for actual or anticipated job vacancies within the organization [1]. In
the contemporary business environment, companies are faced with a critical challenge to
recruit and retain qualified employees [61]. As a result, the current trend demands a far
more comprehensive and strategic perspective to recruit, utilize and conserve valuable
human resources. There is a need for companies to have a conceptually sound framework
(person: job-fit) and a cost-effective, speedy and convenient system (online testing) at
their disposal to meet their personnel selection needs in a highly competitive environment
[20]. These days, one way of doing so is via online recruitment, a method of attracting job
candidates via the internet [25]. As a practice, it is agreed that e-HRM leads to
considerable changes and therefore should be taken as an important development in the
HR field [64, 63, and 40].
E-recruitment has been an issue of interest over the past ten years. Internet is considered
as the latest tool in hiring. It is a real revolution spreading over the world of job hunting
and hiring. The term online recruitment, e-recruitment, cybercruting, or internet recruiting,
imply the formal sourcing of job information online. The first references to e-recruitment
appear in articles of the mid-1980s [35 and 19]. While systematic reference to e-
recruitment in the HR journals begins almost two decades later, in the mid-1990s, when IT
companies and universities began to use the internet extensively. The closing of twentieth
century has given rise to a vast debate concerning the response of HRM to the changing
external and internal environment of the firm. Online job search and recruitment activity
have vastly expanded since the year 2000. This was the period during which a truly
distinct online recruitment paradigm emerged and first attained a level of critical mass.
However, despite of its popularity, the research in the area has not as yet become as
dominant as was predicted by many researchers and practitioners.
E-recruitment can be divided into two types of uses: corporate web site for recruitment
and commercial jobs boards (such as monster.com) for posting job advertisements [79].
Corporate websites are a company’s own website with a link for job posting/career
options where candidates can log into for current openings. If the company advertises its
vacant positions on other website that specialize in recruitment such as - naukri.com,
timesjob.com, monster.com, etc., the companies would be adopting commercial job
boards for recruitment. Firms generally adopt a recruitment method that suits their size
and budget for recruitment. Further, the size and nature of the fraction that applies for an
organization’s vacancies will be affected by how (and to whom) the organization
communicates its vacancies [23].
In times of fierce competition, being able to attract high-quality human resources is
considered a true competitive advantage for organizations [34, 90, and 100]. This
attraction of potential employees and to get them to accept offers of employment has
given recent recognition to the important role that recruitment plays in assuring
organizational success [8, 38, 75, and 83]. It presumes that the approach an organization
takes to recruitment makes a difference and assumes that recruitment outcomes depend on
something more than the existing dynamics of labor supply and demand.
Vinky Sharma, JBS, JIIT, Feb’2011
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With the advent of current organizational need for resourceful recruitment structure,
companies are beginning to understand that recruiting is fundamentally an inventory
problem [47].The transformation phase with the supply chain perspective, encompasses
the planning and management of all activities involved in sourcing, procurement,
conversion, and logistics management activities (American professional association) and
provides a source to integrate the discipline with human resource recruitment.
Importantly, supply chain management also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third-party service providers, and
customers (various layers). Akin to this, human resource supply chain management
(HRSCM) process also involves sourcing, procurement, conversion, and logistics
activities with the help of coordination and collaboration with channel partners (head
hunters, placement consultants, web sourcing etc.). In the supplier-customer business
arrangement, the effective way for suppliers (placement agencies, web sources) to service
customers (company), is to become more responsive. An important factor contributing to
responsiveness is time compression in the supply chain [82]. Not only can the company
(customers) be serviced more rapidly but also the degree of flexibility offered can be more
and, furthermore, the cost should be less because the pipeline is shorter.
The present study is a modest effort in this direction. It aims to expand the existing body
of knowledge in the area by describing the development of human resource recruiting
discipline with a supply chain perspective that is fundamentally a different paradigm from
the traditional approach. As noted by Cappelli (2008), those who study supply chain
management ask questions like, ‘Do we have the right parts in stock?’ ‘Do we know
where to get these parts when we need them?’ ‘Does it cost a lot of money to carry
inventory?’ These questions are just as relevant to companies that are trying to manage
their talent needs [18]. In other words, the principles of supply chain management can be
applied to human resource management which takes human resource recruiting well
beyond the scope that the originator of the discipline had visualized. This will provide
new emphasis and scope to the notion that recruitment is an ongoing activity and that it is
not a solitary errand rather a layered and multifaceted process with internet as a major
facilitator.
Given the importance of recruitment, it is remarkable that little research has been
conducted into the decision making processes in organizations that forms the basis of
recruitment strategy.Previous research studies that have focused on e-recruitment may not
hold true for an emerging market like India. To the best of the researcher’s knowledge no
such study has been conducted in Indian context that could bring out any strong empirical
results. Hence, the research examines the impact of e-recruitment on human resource
supply chain management
1.2 RELEVANCE OF THE STUDY
Irrespective of the research path followed, the majority of researchers have focused on the
manufacturing sector. For example, Arthur (1994) focused on steel mini-mills, MacDuffie
(1995) focused on the auto industry, and Katou and Budhwar (2006, 2007) focused on the
industrial sector as a whole [5, 67, 51, and 52]. The literature also highlights that most
Vinky Sharma, JBS, JIIT, Feb’2011
6
studies have been conducted in the USA and the UK. Recently, a few investigations have
been initiated in other parts of the world, especially in emerging markets such as China
[27 and 2] and transitional economies such as Slovenia [106].
Furthermore, there has generally been a tendency for the services sector to be overlooked
in HRM research [94, 66, and 45]. This lack of research relating to services was due to the
fact that the services sector was a very heterogeneous sector comprising financial
companies, retailing operations, transport operation, and hospitality [46]. Thus, the
heterogeneity of the sector was a serious obstacle to researchers and any attempt to
investigate the services sector as a whole was meaningless unless specific control
variables were properly developed and a representative sample of the organizations
belonging to the services sector was selected [45]. Considering the above, i.e. “it seems
unlikely that one set of HR practices will work equally well no matter what the context”
[36, p.178], more research is needed in the services sector and in different contexts. To fill
this gap and to further examine the impact of e-recruitment, it is important to conduct
research in non-US/European contexts and in non-manufacturing sectors.
1.3 AIM OF THE STUDY
The aim of this research is to examine the impact of the e-recruitment on the quality of
applicants, cost and time involved in acquiring applications, wider choice of applicants
and employees job search behavior and the development of the resulting conceptual
model. Indeed the majority of these variables have been examined as distinct entities and
not simultaneously as components of a human resource system. The lack of research and
knowledge in this area may have limited our understandings of why and how human
resource systems impact recruitment outcomes. Nevertheless, although it is well accepted
that e-recruitment leads to increase in the chance to find the right candidate [33],
facilitates geographical spread [22, 71, 74], quicker turn-around time/cost savings [33, 80,
107] and higher quality of applicants [9], there is a great need for additional empirical
evidence to understand the impact of e-recruitment.
The study undertaken looks at the issue from emerging markets perspective by focusing
exclusively on Indian hospitality and healthcare services. The major objective of this
research is to empirically examine the impact of e-recruitment on quality of applicants,
cost and time taken for employee acquisition, wider choice of talent, and employee job
search behavior.
2. REVIEW OF THE LITERATURE
There is a voluminous research base and bewildering volume of advice to guide the
personnel practitioner on almost every other aspect of the recruitment role and the
importance of recruitment process, yet if one peruses reviews of recruitment research [8,
13, 90, and 103]; one finds a mix of optimism and pessimism. This section on literature
review is focused on various theories that are relevant to our study.
Vinky Sharma, JBS, JIIT, Feb’2011
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2.1 GENERAL ADVANTAGES AND DISADVANTAGES OF E-RECRUITMENT
ADVANTAGES
(i) Geographical spread [22, 71, and 74].
(ii) Larger audience [3, 10, 17, 50, 60, 80, 107].
(iii) Greater chance to find right candidate quicker/with greater effectiveness [33].
(iv) 24/7 - no waiting for issue dates [22, 80].
(v) Quicker turn-around time/cost saving [33, 80, 107].
(vi) Relatively cheap [7, 17, 31, 33, 57, 74, 92].
(vii) Higher quality of applicants [9]
(viii) Better match of workers - vacancies [32].
(ix) Shift from manual screening to using ‘HRM expertise’ [80].
(x) Positive effect on corporate image/up-to-date image [33, 80].
(xi) Efficiency gains
(xii) Cost saving/saving personnel costs [80].
(xiii) Access passive jobseekers [33].
(xiv) Target candidates/ Address niche markets [33, 80].
(xv) Reduction of unqualified candidates [80].
(xvi) More opportunities for smaller companies [80].
DISADVANTAGES
(i) Higher expectations regarding relocation costs [15].
(ii) Development fees for small companies
(iii)Name recognition required (buy banner space etc.) [7, 33].
(iv) Outdated résumés [99].
(v) Discrimination/privacy [9, 26, 30, 80, 81, 95].
(vi) Internet not the first option for applicants [31, 33].
(vii) Overwhelming number of candidates [15, 33, 42, 62, 9].
(viii) Huge number of unqualified candidates [53, 37, 48].
(ix) Time consuming sifting of application forms [73].
(x) Poor segmentation of the market [80].
(xi) Transparency of data [80].
2.2 QUALITY OF CANDIDATES
A study conducted by Berger and Ghei (1995) in his study on a facet of hospitality hiring
concluded that the success of the hotel industry depends on the quality of its employees
and their effective management in order to assist the organization to achieve its objectives
[12].
Mencken & Winfield (1998) explored the advantages and disadvantages of informal and
formal recruiting practices in external labour markets. The authors found that quality was
a strong motivator than cost for informal recruiting. The findings from the regression
analysis also demonstrated that the quality of applicants was more salient for hiring
managers in the private sector [72].
Vinky Sharma, JBS, JIIT, Feb’2011
8
Smith (1999) had worked upon e-recruitment where he had tried to conceptualise that
internet helps employer’s better target prospective employees. The author mentioned that
the career web, which small companies may consider expensive, could still be less costly
than multiple newspaper ads [95].
Galanaki (2002) had conducted a descriptive study on the decision to recruit online,
involving 99 UK IT companies whose shares were traded in London stock exchange. A
survey was carried out, in the form of a postal questionnaire, followed by an interview to
which 34 companies replied. The author found that internet agencies provide the company
with fewer but substantially better applicants than traditional recruitment agencies [33].
A study conducted by Connerley, Carlson, & Mecham (2003) on the evidence of
differences in applicant pool quality addressed the research need by examining the
attraction outcome of firms competing head-to-head for recruits for similar positions.
Results of an analysis suggest that applicant quality can vary substantially within and
across job families [24].
A research by Matthews (2006) on the recruitment of law students by the United States
Internal Revenue Service described how by moving up the start data of its campus
recruitment efforts it was able to fill jobs more easily and with better quality individuals
[69].
2.3 WIDER CHOICE OF APPLICANTS
Mencken & Winfield (1998) had explored the advantages and disadvantages of informal
and formal recruiting practices in external labour markets. The authors found that hiring
managers do indeed view the volume of applicants as the central advantage of formal
recruiting techniques [72].
Chapman and Webster (2003) in their survey research on the use of technologies in
recruiting, screening, and selection processes for job candidates conducted in USA found
that most organizations implemented technology based recruitment and selection tools to
improve efficiency, enable new assessment tools, reduce costs, standardize systems and
expand the applicant pool [21].
According to the Pew Internet Research reported by NAS insights (2006), about 72 per
cent of American adults were online. That translated to over 145 million people. This was
a wide audience, and the Internet proved to be an integral part of employee recruitment
because there was no faster, simpler, or more cost effective way to reach thousands of
qualified candidates. In fact, 44 per cent of online Americans were looking for
information about a job. The Internet allowed HR Managers to reach these candidates 24
hours a day, 7 days a week [76].
Vinky Sharma, JBS, JIIT, Feb’2011
9
2.4 TIME AND COST TAKEN FOR ACQUIRING APPLICATIONS.
A study conducted by Martinez and Martineau (1998) on rethinking human resources
stated that when health reforms aims at efficiency savings or overall cost reduction, they
go by changing the way in which staff are employed [68].
Galanaki (2002) had conducted a descriptive study on the decision to recruit online,
involving 99 UK IT companies whose shares were traded in London stock exchange. A
survey was carried out, in the form of a postal questionnaire, followed by an interview to
which 34 companies replied. The author found that of the factors that influenced a
companies’ decision making, cost-effectiveness and high response rate came first,
followed by access to passive job seekers and the marketing purpose of online recruiting
[33].
The study conducted by Boswell, Roehling, LePine, & Moynihan, (2003) focused on
opportunities to meet people and site visit arrangements. In terms of the timeliness of
actions taken by an employer during the recruitment process, Boswell and other authors
documented the importance of timely recruitment actions. Their results showed that
receiving prompt responses from HR Managers resulted in job candidates having a more
positive view of the employer [11].
A conceptual paper on Managerial challenges of e-recruitment: extending the life cycle of
new economy employees by Smith and Rupp (2004), examined the application of
technology to recruiting and retaining knowledge workers in an e-commerce, information-
intensive environment. The authors reported that e-recruitment as a general process is job
specific and offers computer-assisted screening interviews and statistical prediction to aid
in reducing recruiting costs, time-to-hire and employee turnover [96].
Hadass (2004) in his research on the effect of internet recruiting on the matching of
workers and HR Managers developed a model of recruitment in which job seekers have
private information about their qualification for different jobs and firms possess imperfect
screening technologies. The implications of the model were empirically examined using
personnel data from US-based multinational manufacturing firm with more than 15000
employees. The adoption of e-recruitment was modeled as reducing application costs to
workers and improving screening technology for firms. He concluded that firms may
adopt e-recruitment strategies because of the direct reduction in recruiting costs and
because of competition among HR Managers for qualified hires [41].
The meta-analysis of the research conducted by Chapman, Uggerslev, Carroll, Piasentin,
& Jones, (2005) concluded that timely responses from HR Managers were linked to
greater applicant attraction to a job with an organization [21].
As reported by Aqayo Research on efficient talent acquisition through e-recruitment
(2008), a survey was conducted among several hiring managers at NRG Engineering Pte
Ltd.; a consulting company specialized in the Oil and Gas industry, to identify how the E-
Recruitment software they used enhanced efficiency of their recruitment activities. All
Vinky Sharma, JBS, JIIT, Feb’2011
10
unanimously agreed that using Applicant Tracking Systems significantly reduced the time
spent on each recruitment activity, and additionally smoothened the recruitment process
[6].
A research conducted by Verhoeven and Williams (2008) reports on a study into internet
recruitment and selection in the United Kingdom. The study discussed the advantages and
disadvantages as identified in literature and considered those against the views of HR
Managers in UK. It obtained its data from a survey through postal questionnaire followed
by an administered questionnaire to 83 organizations. The author reported that a quarter of
UK HR Managers found internet recruitment to be effective in delivering suitable
candidates. Furthermore, one out of every five UK HR Managers perceived the tool to be
efficient, and only a slightly higher percentage of HR Managers indicating cost-saving and
acknowledging that internet recruitment tools as relatively cheap in comparison with more
traditional tools [102].
A survey conducted by Williams (2009) on E-recruitment showed dwindling recruitment
spends focused on web-based recruitment at the expense of traditional methods. The
author also reported that online methods proved far more popular, as two-thirds (66 per
cent) of the HR professionals surveyed said that the jobs section of their own company’s
website was used as a recruitment tool for most jobs [104].
2.5 EMPLOYEE JOB SEARCH BEHAVIOUR IN CONTEXT OF E-
RECRUITMENT.
A study by Mau and Kopischke (2001) on job search methods, job search outcomes and
job satisfaction of college graduates, found that there was significant correlation between
the number of job search methods used and the number of interviews and suggested that
the students used a variety of job search methods rather than relying on a single method
[70].
Dineen, Ash, and Noe (2002) examined another aspect of web-based recruitment, namely
the possibility of providing tailored online feedback to candidates. In this experimental
study, students were asked to visit the career web page of a fictitious company that
provided them with information about the values of the organization and with an
interactive “fit check” tool. In particular, participants were told whether they were a
“high” or a “low” fit with the company upon completion of a web-based person-
organization fit questionnaire. Participants receiving feedback that indicated high P-O fit
were significantly more attracted to the company than participants receiving no feedback.
Similarly, participants receiving low fit feedback were significantly less attracted than
those receiving no feedback [28].
A research on Internet job search and unemployment durations by Kuhn and Skuterud
(2004) had tried to find out which types of unemployed workers looked for work online
and whether internet searchers became reemployed more quickly. The authors concluded
that internet job search is more common among workers with observed characteristics that
are usually associated with faster reemployment and internet job search does speed
reemployment. The authors pointed out that, internet job search might significantly
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improve search outcomes on dimensions such as job quality that they had not measured in
their research [58].
Jansen, Jansen and Spink (2005), gave implications for online job seeking and recruiting
in their paper on using the web to look for work. The authors focused upon three specific
research questions: how do people search for job-related information on the web? How
effective are these searches? And how likely are job seekers to find an appropriate job
posting or application? The data used to examine these questions come from job seekers
submitting job-related queries to a major web search engine at three points in time over a
five-year period. Results of their study indicated that individuals seeking job information
generally submitted only one query with several terms and over 45 percent of job-seeking
queries contained a specific location reference. Of the documents retrieved, findings
suggested that only 52 per cent were relevant and only 40 per cent of job-specific searches
retrieved job postings [49].
Ng and Burke (2006) in their study on the next generation at work explored the views,
career expectations, and job search behaviors among a sample of business students. The
authors conducted a field survey involving 20,771 students across Canada to understand
the views of university students on jobs, organizations, careers and perception of their
organizations. The study using multiple regression analysis found that cooperative
students appear to have more realistic expectation, have better insights into their own
abilities and desires, and report higher self-confidence. It also reported that the
respondents had low expectations that their campus career offices would get them a job,
and expected to use the internet more frequently in their job searches. This suggested a
shift away from traditional recruitment mediums to more contemporary approaches such
as internet [77].
Breaugh (2008) had discussed employee recruitment and its important areas for future
research, where he had reviewed research on recruitment topics that had received
considerable attention (e.g., recruitment methods, realistic job previews). He had also
addressed topics (e.g., targeted recruitment, the site visit) that had received relatively little
attention but that had the potential to be quite important. The author had found that many
job applicants: (a) had an incomplete and/or inaccurate understanding of what a job
opening involved, (b) were not sure what they wanted from a position, (c) did not have a
self insight with regard to their knowledge, skills, and abilities, and (d) couldn’t accurately
predict how they would react to the demands of the new position [14].
1368 students and graduates were surveyed on their experiences of online applications, for
the GTI online recruitment student user survey 2009. The questionnaires were sent online
and comprised seven pages of quick to answer questions. 667 completed the
questionnaires in full (55 per cent) while 1027 provided partial responses. The results
highlighted that internet systems were now generally recognized as the mainstream way of
making an application and that applicants were skilled in their use. The majority of
comments were positive. When asked what they liked, students mentioned speed,
convenience/cost-effectiveness, fairness and presentation [39].
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2.6. ISSUES EMERGING FROM LITERATURE REVIEW
From the literature review, the following pertinent issues emerge:
(i) With the internet, all types of jobs and employees could be easily found and acquired
to fill specific needs [59].
(ii) Internet recruitment improves corporate image, reduces recruitment cost, reduces
administrative burden and employs better tools for the recruitment team [55].
(iii) Internet can assist employees in finding employment opportunities faster and easier
than ever before [59].
(iv) Web sites are viewed as a very effective recruitment method and are perceived as
generating a large number of job applicants at relatively low cost [20, 98].
(v) With the introduction of the internet, the recruitment process has become easier [102].
(vi) Complexity and the dynamic nature of recruitment practices require continuous
updation of knowledge, skills and abilities.
(vii) Recruitment practices differ in different organizations classified based on
organization type, size etc.
(viii) Better recruitment practices have impact on image of the organization and ability to
fill the vacancies more promptly.
(ix) In service sector- recruitment and retention have been acknowledged to be
problematic and increasingly a response has been to “cast the net more widely” [85].
(x) Most customers who defect from a service business “blame indifferent or unhelpful
employees” [91].
According to a study conducted by Gerry Crispin, principal of staffing for CareerXroads,
an HR consulting firm, "The use of the Internet for job searches has grown and will
continue to grow." Online recruitment market today is worth over $7.1 billion, according
to HR.com. Online recruitment was rated the preferred way to find a job, with 78 per cent
satisfied with the outcome compared to 54 per cent who opted for the traditional methods.
The review of literature on e-recruitment brings forth the paucity of empirical studies
especially in Indian context. A review of current literature indicates that the use of the
Internet and thus Internet technology is changing [56]; transforming [81, 93, and 101] and
revolutionising the way in which human resource departments recruit job candidates.
Nevertheless, very limited research has been carried out in this area to date. Young and
Weinroth (2003, p.11) refer in this respect to “the currently minimal field of E-recruitment
literature [105], while Lievens et al. (2002, p.586) describe it as “very scarce” [64].
Furthermore, existent literature in the areas focuses mainly on the United States of
America (USA) rather than on European and Asian countries. Reasons for this might be
the relative newness of the topic, the rapid pace of change which makes information
quickly out of date [9] and the advancement of the practice in the USA
The present study is oriented to examine the impact of internet e-recruiting on importance
of quality, wider choice, resources and employee job search behaviour. The study makes a
comparative analysis of e-recruitment practices in Indian service industry at two levels i.e.
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organization type and organization size respectively. The results help to describe the
phenomenon and thus aid in a process that is essential for theory building.
3. RESEARCH OBJECTIVES AND HYPOTHESIS:
3.1 RESEARCH OBJECTIVES
The study is focused on achievement of following five objectives:
1. To assess the impact of e-recruitment in terms of quality of the applicants.
2. To study the impact of e-recruitment on cost and time taken for employee acquisition.
3. To analyze the impact of e-recruitment in providing a wider choice of talent.
4. To analyze the impact of e-recruitment on employee job search behavior.
5. To develop a model on HRSCM with a decision-support capability in an Internet
environment.
3.2 FORMULATION OF HYPOTHESES
Drawing on the existing conceptual and empirical framework, the present study attempts
an empirical examination of the comparative analysis of E-recruitment practices and their
relationship with perceived importance of quality, resources utilized and providing wider
choice among top management and employees. The Hypotheses of the study are:
1. There is a significant difference about perceived importance of advantage,
effectiveness, information and efficiency of e-recruitment between Hospitality and
Healthcare Services; Small and large scale organizations; HR Managers and employees.
2. Advantage, effectiveness, information and efficiency of e-recruitment have significant
impact on suitability, talented database, and targeting right people at all three levels
3. Advantage, effectiveness, information and efficiency of e-recruitment have significant
impact on annual cost, external cost, overall time, processing applications and recruitment
cycle time at all three levels.
4. Advantage, effectiveness, information and efficiency of e-recruitment have significant
impact on entrants, international candidates, accessibility of candidates, and qualified pool
at all three levels.
5. Among employees, HR managers and general managers/other senior managers, there is
a significant difference in perceived importance of Suitability, talented database, and
targeting right people; Annual cost, external cost, overall time, processing applications
and recruitment process time; Entrants, international, accessible, and qualified pool
4. RESEARCH METHODOLOGY
This section discusses the research design and the methodology adopted in the present
study. It also outlines the development of tools while standardizing them scientifically
establishing validity and reliability. Quantitative analysis of data was done using statistical
tools wherever applicable. This section further elaborates on the research design used in
the present study including details of sample, development of research tools, instruments,
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and extraction of variables, data collection procedure and the statistical techniques
employed for data analysis.
4.1 RESEARCH DESIGN
A 2x2x2 factorial design was used as the research design. The research design is presented
in Figure 1. In this study, structured questionnaires A, B, C were developed to identify and
assess perceived quality of employees and wider choice through e-recruitment, resources
utilized for e-recruitment, and employee job search behavior respectively. Detailed
procedure for developing tool is explained in ensuing discussion.
Figure 1: Research Design
Organization (360)
Hospitality & Tourism (180) Health Care (180)
Small
Size
Small
Size
Large
Size
Large
Size
HR
Manager
Employees
HR
Manager
Employees
HR
Manager
Employees
HR
Manager
Employees
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4.2 THE DATA AND SAMPLE
4.2.1 THE DATA
The research is analytical and empirical in nature and makes use of secondary and
primary data. The secondary data was sourced from Emerald, Jstor, Ebsco host, etc.
Primary data was collected from HR managers/professionals, and employees. A third
category of respondents (sample) was taken which constituted people who do not
influence or participate in the process of recruitment directly but are significant
stakeholders. They consisted of General Managers, and other senior functional managers
of the organization.
4.2.2 THE SAMPLE
As derived from the literature, Indian service industry was classified using two criteria,
viz; organization type: if the organization operates in hospitality or in health care services
and organization size: if the organization is individual/small size or chain/large size. Size
is measured in terms of the number of people employed by the company [95].
Respondents included employees, HR managers of the organizations and other
general/senior managers to test different facets of e-recruitment and its impact on human
resource supply chain management. In the present study, data was collected from the
organizations located in National Capital Region of India.
4.2.3 SAMPLING CRITERIA
Equal distribution of respondents between Indian hospitality and health care organizations
as well as between small and large organizations was ensured. All efforts were made to
ensure that the organizations included in the present study met with the above criteria.
Among respondents only those HR managers/professionals were selected who are
responsible for the recruitment activity of the organization. Employees were the persons
from the same organizations working at the level of 0-1 year, 2-5 years and 5 and above
years of experience for comparison purpose. General and other senior managers were
those senior managers who did not have links with HR department, however could be
involved in recruiting activities especially in case of small organizations where no
separate HR departments exist.
4.3. DEVELOPMENT OF RESEARCH TOOLS
As the present study aims at making a comparative analysis of e-recruitment and its
impact on human resource supply chain management, one of the major tasks associated
with this study was the development of questionnaires to be administered. Due to the non-
availability of a valid tool and enough research in the Indian context, items for quality of
employees, cost and time involved and wider choice through e-recruitment were consulted
from various related articles and literature for the basic framework.
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Three questionnaires were developed for the present study. Survey Questionnaire A:
Perceived quality of employees and wider choice through e-recruitment was developed to
measure perceptions about quality of employees to make sure a good fit with the company
as well as getting ample number of applications from diverse geographical locations.
Survey Questionnaire B: Resources utilized for e-recruitment was developed to measure
all costs that are involved in acquiring applications from the prospective employees and
the duration involved in acquiring applications from the prospective employees. Survey
Questionnaire C: Employee job search behaviour was developed to measure employee
job search behaviour about e-recruitment in terms of quality, wider choice, time and cost
involved in e-recruitment. The questionnaire had high face validity. The content validity
(which concerns the relevance of the questions asked to the quality being measured) of the
questionnaire was ensured through the use of judges at different stages during its
development.
4.3.1 PILOT STUDY
A pilot study was performed for all the three questionnaires on a sample of 100
respondents. A pilot, or feasibility study, is a small experiment designed to test logistics
and gather information prior to a larger study, in order to improve the latter’s quality and
efficiency. A pilot study can reveal deficiencies in the design of a proposed experiment or
procedure and these can then be addressed before time and resources are expended on
large scale studies. For the purpose of the present study, the questionnaires were pre tested
on a sample of 100 respondents. These respondents did not form a part of the sample of
the main study. The aim of pre-testing was (i) to check the reliability and validity of the
questionnaire (ii) to ascertain the time required to complete the questionnaire (iii) to check
the adequacy of response categories formulated and (iv) to check the overall
appropriateness of the questions. The questionnaire was discussed with respondents as
well. Thereafter, the same sample was approached after three months to establish the
consistency of the questionnaire. The questionnaire was also validated by conducting
factor analysis and indentifying appropriate parameters.
4.3.2 SCORING OF THE QUESTIONNAIRES
Survey Questionnaire A was rated on a five point scale where strongly disagree was coded
as ‘1’, disagree was coded as ‘2’, neutral was coded as ‘0’, agree was coded as ‘3’, and
strongly agree was coded as ‘4’. Survey Questionnaire B was also scored on a five point
scale where very high was coded as ‘1’, high was coded as ‘2’, neutral was coded as ‘0’,
low was coded as ‘3’, and very low was coded as ‘4’. Survey Questionnaire C was also
rated on a five point scale where responses were coded from 1 to 4 in order of their
desirability.
4.3.3 VALIDATION AND STANDARDISATION
Nature of data and requirements of analysis dictated that data should be standardized. As
survey questionnaire A and B were about the perception of people toward e-recruitment,
quality, wider choice, cost and time involved in recruiting, it was imperative to use data
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reduction methods to identify significant differentiating components/variables. Factor
Analysis was used for this purpose.
4.3.4 FACTOR ANALYSIS
Factor Analysis is the technique primarily used for data reduction or structure detection.
The purpose of data reduction is to remove redundant (highly correlated) variables from
the data and replacing them with a smaller number of uncorrelated variables. The purpose
of structure detection is to examine the underlying (or latent) relationships between the
variables.
The principal components method of extraction was used in the present study as it finds a
linear combination of variables (a component) that accounts for as much variation in the
original variables as possible. It then finds another component that accounts for as much
of the remaining variation as possible and is uncorrelated with the previous component,
continuing in this way until there are as many components as original variables.
Questionnaire Aa (Perceived quality of employees and wider choice through e-
recruitment-E-recruitment), Questionnaire Ab (Perceived quality of employees and wider
choice through e-recruitment-Quality), Questionnaire Ac (Perceived quality of employees
and wider choice through e-recruitment-Wider choice), Questionnaire Ba (Resources
Utilized for E-Recruitment-Cost), Questionnaire Bb (Resources Utilized for E-
Recruitment-Time) were separately treated for extraction purpose.
4.4 RESEARCH TECHNIQUES
4.4.1 MULTIPLE ANALYSIS OF VARIANCE
A two step multivariate procedure was employed where the data was first subjected to
a factor analysis and then multiple analysis of variance was performed on extracted
factors.
In the first step, a set of dimensions (unobservable attributes) were measured
by relating them to observable variables using factor analysis. In the second step, the
ef f ect of different independent variables and their interaction was estimated using
MANOVA. Advantage, effectiveness, information and efficiency were the dependent
variables and organization type, organizational size and respondent category were the
fixed factors.
4.4.2 MULTIPLE REGRESSION ANALYSIS
A two step multivariate procedure was employed where the data was first subjected to
a factor analysis and then multiple regression was performed on extracted factors.
In the
first step, a set of dimensions (unobservable attributes) were measured by relating
them to observable variables using factor analysis. In the second step, the relationship
between dimensions of quality, cost, time and wider choice and dimensions obtained for
e-recruitment was estimated using regression analysis with dummy variables. In the
present study, dummy variables measured the two opposite options at three levels. Value 1
meant the practice coincides with that and value 0 meant the opposite case. Organizational
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type referred to hospitality services (value 1) or healthcare services (value 0).
Organization size referred to large size (value 1) or small size (value 0). Respondent
category referred to HR Managers (value 1) or employees (value 0). Suitability of
candidates, talented database, targeting right people, annual cost, external cost, overall
time, processing applications time, recruitment cycle time, wider choice for entrants,
wider choice for international candidates, accessibility of candidates, qualified pool were
the dependent variables and advantage, effectiveness, information and efficiency were the
independent variables.
5. DATA ANALYSIS AND DEVELOPMENT OF THE MODEL
5.1. FACTOR ANALYSIS
Table 1 (refer t o Annexure 1) shows Kaiser-Meyer-Olkin measure of sampling adequacy
values. It is the measure that judges the sampling adequacy. The value obtained is more
than 0.60 which ensures that the sample size was adequate to apply Factor Analysis.
5.2 FACTOR EXTRACTION
Principal Component Analysis method was used to extract the factors. The Table 2 (refer
to Annexure 1) shows the factor pattern matrix, which highlights variance exhibited by
extracted factors. Generally, the identification of the factors is determined by the factor
loadings, and the relationship of the factor with the variable is based on the signs of factor
loadings. A factor loading is simply the correlation of an original variable with factor.
As suggested by Dillion and Goldstein (1984), variables with factor loadings greater
than absolute value of 0.30 or more are considered significant and, thus, used in labeling
of factors. As shown in the factor pattern matrix a set of 4, 3, 4, 2, and 3 factors were
extracted. These factors were labeled as Factor of e-recruitment, Factor of quality of
applicants, Factor of wider choice of candidates, Factor of cost and, Factor of t i me.
5.3 MULTIPLE ANALYSIS OF VARIANCE
The Table 3 (refer to Annexure 1) shows the parameters for analysis, which highlight the
dependent variables and fixed variables.
5.3.1 RESULTS FOR ORGANIZATIONAL TYPE
There was a significant effect of the organizational type (Hospitality and Healthcare
services) on the combined dependent variable e-recruitment, F (4,355) =11.612, p.013; Information through e-recruitment (INF_IR), F (1,358) =2.082, p>.013; and
Efficiency of e-recruitment (EFC_IR), F (1,358) =3.990, p>.013. Only Advantages of E-
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recruitment (ADV_IR), F (1,358) =31.619, p