Employee Selection Process: An Approach for Effective Organizational Performance

Abstract

This paper is aimed at examining the relationship between employee selection process and organizational performance. Adopting a proportionate stratified random sampling technique, 255 employees were profiled amongst ten (10) banks in Lagos State. Guided by the Human capital Theory, data gathered by this cross-sectional survey was analysed through standardized multiple regression. Three selection process variables – applicant interview, cognitive ability test, and personality questionnaire - were regressed on organizational performance. A preliminary investigation revealed the absence of multicollinearity in the correlation matrix. The ANOVA table indicates that the proposed model is significant, F(3, 251) = 68.446, p < 0.001. Applicant interview made the most unique, and statistically significant contribution to the prediction of organizational performance. This outcome empirically supports that employee selection process cannot be jettisoned when measuring organizational performance. This paper showcases a unique deviation from extant literature which had used market share value, customer base, financial strengths, annual returns, and so forth as parameters to measure organizational performance. Hence, theoretically, this outcome bridges the lacuna that exist in organization performance literature. Practically, the paper suggests to industry experts that the best talents needed to achieve organizational excellence are preferably selected through interview. Apart from the expensive nature of stratified random sampling, this paper is limited by its inability to differentiate between in-person interview and virtual interview. Future study may consider the various forms of interviews to strengthen the outcome of this paper.