Employee selection process and performance: a study in national microfinance bank Mandela Moshi, Tanzania

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Kampala International University, school of Economics and Management
This study set out to describe the relationship between selection procedure employee performance in organizations, a study in National Microfinance Bank limited, Mandela Branch-Moshi, and Tanzania. It was based on both cross sectional and descriptive correlational survey designs. A self-administer questionnaire was used to collect primary data from 66 employees, using stratified random sampling. Data analysis was done using SPSS’s relative frequencies, means, standard deviations, Pearson’s Linear Correlation Coefficient and ANOVA. The study wanted to establish whether there is a strong relationship between; i) employee application forms selection procedure; ii) formal job interview selection procedures; iii) formal employment testing selection procedure and iv) employee physical examination and reference checking procedure and performance of the selected employees in NMB, hence the four study objectives, questions and hypotheses. The findings showed that employee performance in NMB Mandela branch was significantly correlated with; i) the employee application forms selection procedure (r=0.464, sig.=0.000); iia) the preliminary interview selection procedure (r=0.334, sig.=0.006); jib) final selection interview procedure (r=0.378, sig.=0.002); but was not significantly correlated with iii) formal employment testing procedure (r=0.228, sig.=0.066); and iv) physical examination and reference checking procedure (r= 0.142, sig . = 0.256). Employee selection as a whole was significantly correlated with employee performance (F = 7.997, sig. =0.000, R square =301), with interviews (f3=0.682, sig. =0.000); and formal testing (13=0.578, sig. =0.000) being more responsible than others. The research was concluded that properly arranged and conducted; i) employee application forms; and ii) job interview will significantly lead to selection of employees with high performance abilities; while iii) formal employment testing selection procedure; and iv) physical examination and reference checking do not (r=0.228, sig.=0.066 & r=0.142, sig.=0.256 respectively). From research findings I recommend that if employee performance is to be improved in NMB, management should improve the; i) employee application forms selection procedure; and ii) job interviews selection procedures, by ensuring that they ask for employee abilities, qualifications, specializations, morale and confidence, technical abilities, written and oral abilities experiences and ensure that the information put is relevant to the job one is applying for. Last but not least NMB should not over rely on formal test like testing employee traits, abilities, likes and dislikes, capacity to learn, intelligence, performance, etc. and physical examination and reference checking, as these may not result into high performing workers.
A thesis presented to the school of post graduate studies and research Kampala International university in partial fulfilment of the requirements for the a degree master of arts in human resource management
Employee selection process, Performance: