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RECRUITING AND SELECTING
THE EMPLOYEES
Prepared by:
Eva Marrine Sagune
Imam Haryanto
Rusdi
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Human Resource Supply and Demand
 A simplified explanation of forecasting labor demand and
supply
 Labor Supply – The availability of workers with the required
skills to meet the firm’s labor demand.
 Labor Demand – How many workers the organization will need
in the future.
 Human resource planning – The process an organization uses to
ensure that it has the right amount and the right kind of
people to deliver a particular level of output or services in the
future.

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HUMAN RESOURCE PLANNING
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The Hiring Process
 Recruitment

 Selection

 Socialization

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Challenges in the Hiring Process
 Determining the characteristics most important to
performance
 Measuring the characteristics that determine performance
 Evaluating applicants motivation levels
The motivation factor --- performance = ability x motivation
 Who should make the selection decision?

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Meeting the Challenges of
Effective Staffing
 Recruitment
Sources of recruiting:
 Current employees
 Referrals from current employees
 Former employees
 Print and radio advertisements
 Internet advertising and career sites
 Employment agencies
 Temporary workers
 College recruiting
 Customers
 Nontraditional Recruiting

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 External vs. internal candidates
 Recruiting protected classes
 Planning the recruitment effort
 Planning your job search
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Selection
 Reliability and validity
 Selection tools as predictors of job performance
 Combining predictors
 Selection and the person/organization fit
 Reactions to selection devices
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 Reliability – Consistency of measurement, usually across time
but also across judges.
 Validity – The extent to which the technique measures the
intended knowledge, skill, or ability. In the selection context,
it is the extent to which scores on a test or interview
correspond to actual job performance.

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 Selection tools as predictors of job performance –
 Letters of recommendation
 Application forms
 Ability tests
 Personality tests
 Psychology tests
 Honesty tests
 Interviews – structured
 Assessment centers
 Drug tests
 Reference checks
 Background checks
 Handwriting analysis

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Personality Tests
 Extroversion
 Agreeableness
 Conscientiousness
 Emotional stability
 Openness to experience
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Structured Job Interview
 Situational Interview

 Job Knowledge

 Worker Requirements
Questions

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Unstructured Does not Mean Unprepared: Making
the Most of the Hiring Interview
Six Simple Tasks
 Be prepared
 Put applicants at ease in the first few minutes
 Don’t be ruled by snap judgments or stereotypes
 Ask results-oriented questions
 Don’t underestimate the power of silence
 Close the interview with care
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Reactions to Selection Devices

1. Applicant reactions to selection devices

2. Manager reaction to selection systems

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Legal Issues in Staffing
 Discrimination Laws


 Affirmative Action


 Negligent Hiring


 Develop clear policies on hiring as
well as on disciplining and
dismissing employees
 Check state laws regarding hiring
applicants with criminal records
 Learn as much as possible about
applicants’ past work-related
behavior
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CASE STUDY:
RECRUITMENT AND SELECTION
IN LOB CORPORATE BANKING
BANK DANAMON
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BACKGROUND
 Established in 1956, PT Bank Danamon Indonesia, Tbk. is the
third largest private national bank and the sixth largest
commercial bank in Indonesia, with a 5% share of domestic
loans and deposits
 Asia Financial Indonesia Pte. Ltd. (AFI) owns 67.87% of
Danamon. AFI is a consortium of Asia Financial Holding 85%
(wholly owned by Temasek group) and Deutsche Bank AG
15%.
 Temasek Holdings is a Singapore-based investment company
which owns by Government of Singapore with AAA rating.
The remaining of Danamon’s shares are publicly owned.
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HR Organization Chart

HUMAN RESOURCES HEAD
Human Capital
Head
Sourcing,
Assessment &
Talent
Management
Remuneration

Organization &
Performance
Management
Learning Group
Head
HR Planning &
Measurement
Head
HR Service
Delivery Head
HR Strategic
Partner Head
HRIS & Services
Employee
Relation
HR Region
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HR Policy on
Recruitment and Selection
 Established in BOD decision letter (SK) for bank wide as well
as LOB, reviewed annually to follow business development.
 The objective is to fulfill company needs align with the
business plan of respective units with transparent, objective,
and professional selection processes based on Man Power
Planning (MPP).
 Employee status to be hired:
 Permanent staff
 Contractual staff
 Trainee
 Outsourcing staff

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 General Policy, there are 2 reasons for recruitment and selection:
 Staff additional for business development or man power deficiency
 Staff replacement due to staff rotation, resign, pension, etc.
 Take consideration on budget system established by Financial Control
Department
 No discrimination against applicant based on sex, race, etc.
 Source or recruitment and selection:
 Internal, trough job posting
 External, with channel: advertising, referral, job fair, walk in
applicant, agent (head hunter), or outsourcing/vendor (if needed)
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Supply and Demand Condition
3 periods of condition:
 Up to September 2008: Mass recruitment
Mainly to support rapid growth of LOB SEMM (micro banking)
 Consolidation period, October 2008 – mid 2009:
 Stop/freeze recruitment from external
 Internal sourcing (zero growth)
 No contract extension
 After consolidation period, mid 2009 onward: Selective
recruitment from external sourcing only for key position, that
has to align with specific business plan and subject to special
approval from BOD
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Hiring/Selection Process
 Refer to HR budget system, the respective unit establish Man
Power Form (Formulir Kebutuhan Pegawai). Any deviation
should get approval from respective PIC in HR Head Office,
and for certain level should get approval from BOD.
 Recruitment and selection has to consider hard competency
and soft competency supported by educational background,
work experience, reference, and medical check-up.
 Recruitment with direct familial relationship or marital
relationship should be avoided. Any deviation should get
approval from BOD.
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Hiring/Selection Process
 Responsibility in recruitment and selection:
 Sourcing, Assessment & Talent Management for Head Office
staff
 HR Region for Regional and Branch staff
 Selection process and PIC:
 For Middle Line and Senior Management, mainly interviewed
with 2-3 members incorporated with reference check and
medical check-up. PIC is Sourcing, Assessment & Talent
Management
 For Clerical up to First Line Management, plus psycho test to
measure attitude and personality (web based), also ability test
if needed, with HR Region as PIC
 Special tools (Gallup) for MT staff
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Recruitment and Selection Evaluation
 In annual basis
 Performed by HR Head Office in coordination with respective
LOB’s
 Conveyed to HR Committee and respective LOB’s for process
improvement

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Recommendation
 Performing recruitment and selection evaluation in
comparing:
 Citizenship: Foreign vs local staff
 Staff’s original company: Foreign vs local bank
In favor effectiveness, efficiency, Corporate culture building,
and turnover, align with bank and policy.
 Evaluation on staff sourcing, especially for internal, former
staff, and referral with certain employment period, compare
to existing staff (with longer employment period).
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Thank You
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