Examining the recruitment and selection practices of family owned Small Medium Enterprises in the Kumasi Metropolis

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The contribution of employees in Small Medium Enterprises which represent more than 90% of all businesses in Ghana and occupy a central part of the Ghanaian economy cannot be downplayed. Effective recruitment, selection and retention of employees are part of employment relationship and can enhance work performance and contribute to business success. Effective recruitment and selection has been associated with positive outcomes and retention, however the attention has rarely been focused on family-owned small businesses. The objective of the study was to investigate the recruitment and selection practises of family- owned small businesses. In a survey study carried out on 107 family owned small businesses that were purposively sampled in the Kumasi metropolis it was evident from the results that the family owned small business do not follow formal recruitment and selection practices, but rather the recruitment is based on the discretion of the owner/ manager. From the findings of the study the main recruitment practices adopted by the businesses are word of mouth and promotion from within; the selection method preferred by the family owned businesses is the one-on-one interview. The major challenge faced by the family owned business is their ability to attract high skilled labour. The study recommends that SME should employ professionals to improve their performance.
A thesis submitted to the Department of Managerial Sciences, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (HUMAN RESOURCE MANAGEMENT). 2014