Relationship between recruitment information system and management of human capital: a case of James Finlay limited, Kenya.

Abstract

Technological advancement in the 21st century has unlocked possibilities in all spheres of existence. Lately, with the advent of the Covid-19 pandemic, the workplace has been transformed, and businesses are operating in unchartered waters. A human resource management information system is believed to guarantee a more efficient and effective way of managing human capital in organizations. However, its implementation has not effectively transformed from the manual method of running the human resource functions. Many organizations are, therefore, still stuck with the traditional way of managing human capital. On this basis, this study sought to establish the effectiveness of recruitment information systems in human capital management. The study was anchored on the resource-based theory of the firm and used a cross-sectional research design with a target population of 458 employees. A sample size of 213 respondents was determined while stratified and simple random sampling techniques were adopted to select the respondents for the study. A structured questionnaire was used to obtain primary data from the respondents. The reliability of the questionnaire was tested through a pilot study where an average Cronbach alpha coefficient of 0.89 was obtained. The validity of the questionnaire was ensured by doing a detailed literature review and consultation with subject experts. Descriptive statistics (mean and standard deviation) were used to summarize data, while correlation analysis was used to test the study's hypothesis. Results were presented using tables. The findings established that recruitment information systems had a strong positive relationship (R = 0.873, β1 = 0.518, R2 = 0.762, p = 0.05) with human capital management, indicating that James Finlay Limited should invest more in Recruitment information systems. The study recommended that the company improve the recruitment information system to enhance the job interview process and improve the system to allow efficiency in tracking job applications and appointment processes