Empirical Research into the Relationship Between the Employment Process and Business Performance

  • Бранка Золак Пољашевић Faculty of Economics, University of Banja Luka
  • Гордана Илић Faculty of Economics, University of Banja Luka
Keywords: Employment process, recruitment, selection, business performance

Abstract

Employment process is one of the main components of human resource management. Employment process is implemented through two related practices, and these are recruitment and selection. Efficient recruitment program is a prerequisite for high quality screening, and selection of candidates who best ft with the position requirements. In addition to consideration of the significance of adequate implementation of the employment process, and summary of the recruitment and selection methods which are available to the employers, through this paper and empirical research, we analyzed the relationship between the employment process and business performance in large business organizations in the Republic of Srpska. The hypothesized relationships between observed variables were tested by using several statistical methods. Research results suggest that between quality of the staffing process and the observed indicators of business success there is a statistically significant correlation, indicating that the improvement of the quality of this human resource management practices tend to increase business performance. Furthermore, results show that there are statistically significant differences in indicators of business performance among groups of organizations that have a different level of quality of the employment process. Specifically, operating results per employee, as well as the result of ordinary activities per employee, were significantly higher in organizations which systematically and adequately carry out the employment process. Results of this research provides contribution to the empirical findings in this field and stress the unsuitable staffing policies, which is, unfortunately, represented in a number of domestic business organizations, and which is generator of the broader social problems.

Downloads

Download data is not yet available.

References

Ahmed, O. & Schroeder, R.G. (2003). The Impact of Human Resource Management Practices on Operational Performance: Recognising Country and Industry Differences, Journal of Operations Management, 21(1), pp. 19-43.

Anderson, A. H. (1994). Effective Personnel Management: A Skills and Activity-Based Approach, Oxford: Blackwell.

Armstrong, M. (2009). Armstrong’s Handbook of Human Resource Management Practice, 11th edition, Philadelphia and London: Kogan Page Limited.

Babić, V. & Slavković, M. (2011). Povezanost obrazovnog sistema i potreba privrede, u Zubović, J. (ed.), Aktivne mere na tržištu rada i pitanja nezaposlenosti (str. 1-26), Beograd: Institut ekonomskih nauka.

Bahtijarević-Šiber, F. (1999). Menadžment ljudskih potencijala, Zagreb: Golden marketing. Caruth, D.L., Caruth, G.D. & Pane, S.S. (2009). Staffing the Contemporary Organization: A Guide to Planning, Recruiting, and Selecting for Human Resource Professionals, 3rd edition, USA: Praeger Publishers.

CIPD Chartered Institute of Personnel and Development (2007). Recruitment, Retention and Turnover Survey, London: CIPD.

CIPD Chartered Institute of Personnel and Development (2011). Resourcing and Talent Planning Survey, London: CIPD.

Delaney, J.T. & Huselid, M.A. (1996). The Impact of Human Resource Management Practices on Performance in For-profit and Non-profit Organizations, Academy of Management Journal, 39(4), pp. 949-969.

Katou, A. & Budhwar, P. (2006). The Effect of Human Resource Management Systems on Organizational Performance: Test of a Mediating Model, International Journal of Human Resource Management, 17(7), pp. 1223-1253.

Kim, Y. & and Ployhart, R.E. (2014). The Effects of Staffing and Training on Firm Productivity and Profit Growth Before, During, and After the Great Recession, Journal of Applied Psychology, 99(3), pp. 361–389.

Lovrić, M., Komić, J. & Stević, S. (2006). Statistička analiza: Metodi i primjena, Banja Luka: Ekonomski fakultet Banja Luka.

Noe, R., Hollenbeck, J., Gerhart, B. & Wright, P. (2011). Fundamentals of Human Resource Management, 4th edition, New York: McGraw-Hill/Irwin.

Quresh, M.T. et al. (2010). Do Human Resource Management Practices Have an Impact on Financial Performance of Banks? African Journal of Business Management, 4(7), pp. 1281-1288.

Quresh, M.T., Hijazi, T.S. & Ramey, I.M. (2007). Impact of Human Resource Management Practices on Pakistani Organizations, Journal of Business and Policy Research, 3(2), pp. 128-138.

Redman, T. & Wilkinson, A. (2006). Contemporary Human Resource Management: Text and Cases, 2nd edition, England: Pearson Education Limited.

Stredwick, J. (2005). An Introduction to Human Resource Management, 2nd edition, USA: Elsevier.

Štangl Šušnjar, G. & Zimanji, V. (2005). Menadžment ljudskih resursa, Subotica: Ekonomski fakultet. Whitehill, A.M. (1991). Japanese Management: Tradition and Transition, London: Routledge, 1991.

Илић, Г. (2014). Основи менаџмента људских ресурса, Бања Лука: Економски факултет. Илић, Г. и Золак Пољашевић, Б. (2013). Унапређење квалитета радне снаге у функцији смањења структурне незапослености у Републици Српској, Acta Economica, 11(9), стр. 43-66.

Микеревић, Д. (2011). Финансијски менаџмент, четврто допуњено и измјењено издање, Бања Лука: Економски факултет, Финрар.

Шкарић-Јовановић, К. и Радовановић, Р. (2006). Финансијско рачуноводство, Београд: Центар за издавачку делатност.

Published
2016-07-31
How to Cite
Пољашевић, Б., & Илић, Г. (2016). Empirical Research into the Relationship Between the Employment Process and Business Performance. Acta Economica, 14(25), 9-31. https://doi.org/10.7251/ACE1625009P
Section
Original Scientific Papers

Most read articles by the same author(s)

Obs.: This plugin requires at least one statistics/report plugin to be enabled. If your statistics plugins provide more than one metric then please also select a main metric on the admin's site settings page and/or on the journal manager's settings pages.