Recruitment and Selection Process in Karachi Port Trust: Case Study

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About the company

Brief history:

KARACHI, because of its geographical location is known as the gateway of Asia. It is considered as the safest harbor since Karachi was the small village for fishing in early nineteenth century. The Port is administered by the Brand of Trustees including the Chairperson and 10 trustees.

At the time of independence in 1947, the Port capacity was about 1.5 million tons of dry cargo and 1.0 million tons of P.O.L. products per annum. Karachi Port is now handling over 11.74 million tons of liquid cargo and 25.45 million tons of dry cargo, including 1,213,744 TEUs which constitute about 60% of import/ export of the country.

Mission:

“In pursuance of the Landlord Port Strategy, to lease out port infrastructure, land, access and assets to private port operators on long term basis while retaining regularity functions”.

Vision:

“To transform the port into modern, competitive and user friendly port, which would also be a transshipment hub of the region.”

Executive summary

Karachi Port Trust which is known as the gateway to Asia because of its Geographic and Strategic location plays a vital role within the economy of the country and serving trade with its best loading handling system and economical berthing facilities of loading shipping. 1,200 kilometers is being shared by Pakistan long coast line with the Arabian Sea – amid sea which joins the strategic oil line of Persian Gulf with the Indian Ocean.

Karachi Port, the hub of the maritime activity where the majority of loading is received and transported to any or all round the world. Karachi Port Trust, a proud beneficiary of a hundred twenty five years of merit able performance, is ever mindful of the importance of this port.

The Karachi Port is administered by a Board of Trustees, Including chairman (Chairperson) and 10 Trustees. Federal Government is the one who select the Chairperson who is also the Chief Executive of Karachi Port Trust. The remaining 10 Trustees are equally distributed between the public and the private sector. The five public sector trustees are nominated by the Federal Government. The seats for private sector trustees are filled by elected representatives of various private sector organizations.

It has six divisions. All the divisions are assisting and controlling by a manager, follow by a deputy manager furthermore KPT generates its revenue through providing facilities for imports and exports. As KPT is the service providing company, its operations play a significant role in generating revenues and providing customer satisfaction. H.O.D operation who serve as the second most important person after chairperson. All the operations going inside the KPT are interlink through one another and have an excellent influence on one another.

More than 60 % trade of the country is handled by the Karachi Port apart from transit trade of Afghanistan and transshipment traffic. It has 11.5 km long channel with 30 dry cargo berths apart from three liquid cargo berths for handling POL & Non-POL products. The port provides round the clock safe navigation for vessels including container ships and tankers up to 75,000 DWT.

KPT have 2 instrumentation terminals specifically KICT (Karachi International instrumentation Terminal) and PICT (Pakistan International instrumentation Terminal) and one Silos terminal. PICT and KICT, the foremost advance instrumentation equipped with the state of the art gantries and facilities.

Karachi Port Trust has three multipurpose oil terminals; OP-1, OP-2 and OP-3.Crude oil, edible oil, chemicals, molasses etc. are handled by these terminal.

KPT has broad range of cargo and container solutions and value added services. KPT has thirty dry cargo berths which handle bulk, break bulk and containers.

Literature reviews

Article no. 1

Recruitment:

Recruitment means “Attracting the candidates for a job position”, it is the positive aspect of Human Resource practices. Due to entry of social media recruitment process is changing quickly, many organizations are preferring social media to attract candidates.

Selection:

Selection is the negative aspect of HR practice, it means to select a candidate whose knowledge, skills and ability matches job requirements. Selection procedure depends on the size and type of organization. According to some other research, recruitment and selection process is linked with employee satisfaction and organization performance.

According to the study of recruitment and selection process of SAIGLOBAL VARNTEX (INDIA) Private Limited, by Syamala Devi Bhoganadam (research scholar) and Dr. Dasaraju Srinivasan Rao (associative professor), human capital is the most valued and tresurous asset of any organization, therefore during recruiting and selecting, company should keep in mind the important of human resource and should modernize recruitment and selection procedure so that they can give tough competition to their competitors.

Article no. 2

In a research by Dr. V. Vijay Anand, Dr. M. Shanthan Lakshmi, Dr. G. Uppili Srinivasan, G. Icewarya, S. Nandhu, S. Morisa Kamatchi, on effectiveness of recruitment organizational support in ITes, the researcher have written that Recruitment is the process of attracting best qualified candidates, this could be within or outside the organization. Selection includes analyzing and screening. In effective recruitment, the organization focuses on both internal and external recruitment and not only on internal recruitment because they are an internal candidate. They will motivate the existing employees to bring more candidates. It is important to practice effective recruitment because the people who will be hired will be responsible for the production of the organization. No matter how good your other sources are, if your Human Resource is not effective your organization can not achieve its goals. The manager have to look for right person through right means. The source of attracting candidates depends on the position of the job.

Article no. 3

According to the Research of the analysis of Recruitment which was based on the practical fact. According to this research recruitment process in different companies varies, like for the small firms recruitment and selection is on the small scale as compare to large firms in which it is time consuming and a long process, also according to this research it’s important recruitment and selection policies should be well structured, line manager and executive should be aware of future problem which will going to be come in their way which is key to success of the organization, also according to this research large firms should select candidate internally which will going to help them to save time as well as cost and they can rely on them easily rather than selecting new candidate and train them which is time consuming as well as costly.

Article no. 4

Price (2007), in his work Human Resource Management in a Business Context, He states that the process of recruitment is not a simple selection process, while it needs management decision-making and broad planning in order to appoint the most appropriate manpower. According to the research data Most of the respondent were satisfied but changes are required according to the changing scenario as recruitment process has a great impact on the working of the company as a fresh blood, new idea enters. Also it have been found from the respondent that the selection process is good but it should also be modified according to the requirements and should job profile so that main objective of selecting the candidate could be achieved.

Article no. 5

The Research solely depends on the method on which the organization is hiring the employees. The Methods described by the HR department of that organization gives surety of the recruitment and selection of the best employee for that specific job. According to Research report, employee reference is one of the most reliable source of hiring the new employees. The data for research report collected by a well define questionnaire with sample size of 30. These questionnaires were analyzed by SPSS software. At all the main focus of research report is to help the HR department to use the key of talent acquisition for better hiring of employees.

Article no. 6

The Research report define the Way of selection and recruitment of best employees for the Company for the extraordinary performance. As Employees are the only way by which company can maximize its output. The Research report reflects that how talent acquisition can help the company to hire best employees fir Electronics Company. Sample size of 150 help the research report to define these factors and questionnaires were used as a methodology. The Research report came to the conclusion that company should focus on long term consistent performance rather than short term. The emphasis towards training and enhancing skills of recruiters needs to be more and also consistent.

Article no. 7

According to the study of IRACST on the recruitment and selection – a need of how for organizational success (2014) whenever a company uses false means of recruiting and selecting it leaves a negative impact on the applicants and existing employees feel neglected. The study concludes that placing right personnel for right job is possible by accessing individuals’ competencies and provides equal platform for performing job in right manner and this helps to manage the budget of the companies in right direction. The study further concludes that market image of company stabilizes when it stops recruit and select as employee raiding. The study proves that using power and status companies end up hiring incompetent people which results in distress of employees due to favoritism.

Article no. 8

According to the study of employee challenges towards recruitment and selection process conducted by Syngenta Ag. In 2014 the objectives of the research were to understand different types of selection procedure, analyze the performance of recruitment and selection procedure and to measure challenges faced by the organization related to recruitment and selection. The company concluded that 48% of respondents said that there were more stages in recruitment, 56% of respondents had undergone personal interview and 44% of respondents had gone psychometric test. It was further concluded that 36% of recruitment was done through recruitment agencies, 20% through internet and 24% internally. The different HR managers were included in recruitment and selection which concluded that 84% of the respondents agreed that present strategy were helpful for recruiting and selecting, 72% of respondents agreed that job vacancies are open for public, 56% of respondents undergo educational qualification and must increase internal recruiting for reduction of cost.

Article no. 9

According to the study of effectiveness of recruitment and selection practices in public sector Higher Education Ghana, they relies on recommendation of other employees from the existing employees and the identification of vacant seats and the recruitment and selection of employees should be done by using advertisements (print/media) to publicize the vacant positions. Since recruitment is the process of hiring skilled, knowledgeable and qualified employees for job. Armstrong and Castelo (2006) puts the fact that recruitment is the process used by the management to fill the vacant positions. Dessler (2002), Yassin (2015) and Jovanovich (2004) says that recruitment and selection is the procedure of attracting the pool of candidates for the job and hiring those that are fit for the job.

According to the research the organization should not hire friends and family in the vacant position. They should increase the campus and graduate recruitment since this will reduce favoritism in the organization and all the capable candidates will get the chance and in order to make the identity for number of vacant seats available the organization should use advertisements.

Article no. 10

According to the research the recruitment and selection criteria on organizational performance depends upon the quality of the performance of the workforce. Bo lander, Snell and Shaman (2001) says that it is important for the higher management to understand their policies and practices that they use for the selection process. As Robbins (2005) observed that the human resource policies that are practiced in the organization represents the behavior and the attitude of the employees working in the organization. The organization should not compromise on designing the recruitment and selection criteria. They should design the criteria that is beneficial for both; the employees and the organization.

Objectives

The main objectives for this project was:

To know the existence recruitment process in Karachi Port Trust.
To know the existence selection process in KPT.
To know the HR policies and practices of Recruitment and Selection in KPT.
To know what practices are uses for attracting the candidate for the job?
To identify the challenges faces by the HR in Recruitment and Selection Process.

Human resource department

The human resource depart of KPT make sure that they fulfill the human need within the organization through job rotations, deputations, hiring and recruitment. Along with this HR Department of KPT have responsibility to keep the track of the employers from the start to the top until their retirement. And in fact even after retirement i.e. pension, pensioner and pension holders. All the promotion within the organization is process in HR depart. HR depart has a single manager and deputy manager, who is responsible and keep eye on all the activities and process in the organization.

Company findings

Recruitment policies:

KPT is a government organization so it has its own policies for recruitment, the criteria varies from post to post, it has employees and officers from grade 1-21. For employees KPT has recruitment and selection policies (2005), where experience, skills and qualification are defined. For officers recruitment, promotion and selection policies (2011), where requirements are mentioned.

Mediums for recruitment:

KPT uses only two mediums for recruitment, first is the print media and second is internet, advertisements are posted on PEPRA. Till now KPT used to do recruitment by itself, their latest advertisement was published last month but, now they have involved third party called PTS (Pakistan Testing Service) it’s similar to NTS. This is not because KPTs HR department is not efficient enough but it is due to political reasons but, the department is not efficient enough and requires a lot of improvements. The previous head of the department of HR had a very bad reputation, he was famous for misusing his authorities and it is common in any government organization.

Hiring and promotion:

In case of hiring and promotion internally and externally, KPT has a ratio of 40% and 60%. They do external recruitment through internet or print media, this is for transparency in hiring people. They also promote their existing employees to higher position but, it takes a lot of time (5-6 months) because of ineffectiveness of HR Department of KPT and political reasons. KPT prefer internal employment (40%) to motivate employees and for employee satisfaction. When we asked them if they do any psychometric test the answer was no but they said they are working on it because they do have some employees with some psychological problems and to fire them time period of 5-6 months is required.

Appointment:

KPT undergoes 3 types of appointment, first on permanent basis, second on contract and third is fixed stipend. All of them have their predefined criteria. In contract there are further two types first direct contract , where employees are hired directly by publishing ads, second is indirect contract, where they have family assistance package if any employee dies and if he or she have someone in their family who is eligible for the job then he is hired.

Analysis

Karachi port trust is a vast organization, which provide employment to 100’s of people. The procedure of recruitment and selection is very detailed in KPT and varies post to post. Firstly the concerning department send an official application to HR department for vacant position to be filled, then HR department publish advertisement and other source of recruitment for vacant position of concerning department, they previously used to do the recruitment process by themselves but now due to political reasons they have involved third party which is a plus point in recruitment process as they will have an open market of employees. After receiving hundreds of CV’s HR department select those candidates who meet their concerning criteria (recruitment and selection policy 2005 for employees and recruitment, promotion and selection policy 2011, both are under revision period). Further interviews are conducted on verification of references, background and medical test are done and candidates are shortlisted, posts for which technical skills are required the candidates are send to do field work and the post for which number aptitude skills are required the candidates’ aptitude test is takes, they do not do any psychometric test or stress level test, they said they do have some employees who are psycho to some extent and they can’t even fire them and should have tested this at the time of appointment, they have employee development department which helps the employees to cope with their stress and anxiety . After all this appointment letter is send to the selected candidate. This complete procedure of recruitment and selection is carried out in Karachi Port Trust in 5 to 6 months, which is very long duration. They do not have ERP system in their organization to integrate the need of employees to HR department.

KPT recruits internally in a ratio of 40%in a big ratio. They prefer external hiring (60%) this helps in bringing innovation and diversity in organization lack in hiring of employees or recruitment externally that is the main purpose of the organization lacks diversity and creativity. The person selected for recruitment and selection purpose shall be very well trained so that the non-deserving candidate are not entertained and that help in quick recruitment for this they have training department. KPT has a deviance committee which resolve the issues of internal promotion of people but internal promotion is not based on performances , there is biasness to some extent, in KPT they lack balance score card for performance evaluation of the employees so that appraisal and promotion is granted.

Organization structure

Hierarchy of Karachi port trust operations

The department of Human Resource management supports the KPT and its workers by providing the effective and economical human resource programs and services that attract, develop, retain high performance work force.

HRM establishes the strategies, policies and practices.

Give the employees’ pension
Deputation and Promotion
Make the profile of the employees’
Make the annual and confidential report
Hire the right person for the right place

Functions of the human resource department

The human resource department of any business deals with every human resource aspect starting from recruiting the employees to their retirement. This department helps people with respect to the strategic need of organization.

Following is the function of the human resource department;

Recruitment
Transfer
Pension
Litigation
Promotion
Advances
Government correspondence
Establishment matters
Enquiry cell

SWOT Analysis

Water pollution.
Economic factor.
Employee’s turnover rate can be high.
Lack of training faculty.
Somewhere biasness exists.
Selection and promotion process is quiet delayed
Appropriate training selection for employees.
Introduction of technology for convenient CV reading

Threat

Opportunity

Satisfied employees.
Well experienced/qualified skilled workers.

Recommendations

They should give proper training to employees so that they could response to changes quickly
Existing faculty should be trained to increase efficiency and productivity.
They should make flexible policies so that employees feel like a family and work vice versa.
They should have efficient balance scorecard technique for performance evaluation.
They should hire employees externally to promote diversity and creativity

References

https://www.researchgate.net/publication/268210664_A_Study_On_Recruitment_Selection_Process_With_Reference
Syamala Devi Bhoganadam et. al International Journal of Management Research & Review.(ISSN: 2249-7196)
A Study of the Recruitment and Selection process: SMC Global (ISSN 2224-6096 (print) ISSN 2225-0581(online)).
Recruitment and Selection Process By Ms.G.KARTHIGA, Dr.R.Karthi, Ms.P.Bala Aishwarya(ISSN 2250-3153 ).
https://eujournal.org/index.php/esj/article/download/10828/10364
A STUDY ON EMPLOYEE CHALLENGES TOWARDS RECRUITMENT AND SELECTION PROCESS by Mr. A.Susairaj and Ms. A.Laura Jenifer (E- ISSN -2347-856X ISSN -2348-0653).
Recruitment & Selection: A need of the hour for organizational success BY Pooja Khanna (ISSN: 2249-9563).

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