An investigation into the recruitment and selection practices of SMEs in the Kumasi Metropolis

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Effective recruitment and selection practices enhance the productivity and the competitiveness of every organization. Empirical research shows that when organizations employ formal and systematic recruitment and selection practices they are able to reduce staff turn-over and its’ associated cost achieve their goals and objectives. The present study sought to investigate the recruitment and selection practices of SMEs in the Kumasi Metropolis in the Ashanti Region of Ghana. A questionnaire survey was chosen as the research design of this investigation. Purposive sampling was used to select three firms each from the micro, small, and medium enterprises. The researcher sampled owner/ managers and every employee of the selected micro and small firms. However, simple random sampling was used to select respondents from the selected medium enterprises. SPSS was used to analyze the data that was collected. The study found very little in terms of formal and systematic procedures contrary to what is prescribed in text books on formal recruitment and selection practices. Respondents identified the lack of formal recruitment and selection practices and a well defined and concise policy on recruitment and selection, informal performance appraisal practices and the difficulty in attracting qualified employees as a major problem militating against the growth of SMEs. The study also found that SMEs are laying more emphasis on qualification as the basis for employment and resisting the pressure to employ friends and relatives. The study provides some relevant recommendation to policy makers and owner/ managers to help improve on the recruitment and selection practices in SMEs and formulate policies that in the light of the ever changing scenario of industrialization and globalization will position the SMEs sector at the forefront of the nations’ socio-economic development.
A thesis submitted to the Department of Managerial Science, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Business Administration (HRM Option), 2012