THE ROLE OF RECRUITMENT AND SELECTION EFFECT ON PREVENTING FRAUD IN INDUSTRIAL SECTOR
DOI:
https://doi.org/10.24905/icobis.v2i1.30Keywords:
Recruitment, Fraud, Industry, PreventiveAbstract
This study aims to analyze the role of recruitment and selection in preventing fraud in the industrial sector, specifically examining how these processes contribute to effectiveness as well as early prevention of the possibility of committing fraud. This study uses a quantitative approach with a survey design involving 200 employees from various industrial companies in Indonesia. Data was collected through a questionnaire that had been tested for validity and reliability. Multiple regression analysis was used to test the research hypothesis. This study contributes to the auditing literature by providing a self-control context for committing fraud. These findings provide practical implications for companies to prioritize the quality of the recruitment and selection process, invest in creating a clean and honest company climate and avoid fraudulent acts. Policy makers in the industrial sector are encouraged to formulate guidelines that support systematic and goal-based recruitment practices to improve overall employee performance, provide comfort and honesty and ethics to employees, and organizational competitiveness. Recruitment has a positive and significant influence on fraud prevention (β = 0.456, p < 0.001), and selection also has a positive and significant influence on fraud prevention (β = 0.523, p < 0.001). These two variables together explain 67.8% of the variation in fraud prevention (R² = 0.678), indicating that effective recruitment and selection are important determinants of fraud prevention in the industrial sector. Future research should consider a broader range of industry sectors and explore moderator or mediating variables – such as organizational culture or training practices – that may influence the relationship between recruitment, selection, and fraud prevention.
References
Snell, S., & S. Morris, S. (2014). Building dynamic capabilities around organizational learning challenges. Journal of Organizational Effectiveness, 1(3), 214–239. https://doi.org/10.1108/JOEPP-07-2014-0033
Abdul, S. (2020). The impact of person job fit and person organization fit on employee job performance : A study among employees of ser .... performance : A study among employees of services sector Zulfiqar Ali Rajper. (August).
https://doi.org/10.34091/JASS.13.1.05
Arora, S., Malhotra, L., & Ruhil, M. (2024). ALIGNING STRATEGIC HR MANAGEMENT WITH BUSINESS OBJECTIVES: EXAMINING THE EFFECT ON ORGANIZATIONAL EFFECTIVENESS AND PERFORMANCE. ShodhKosh: Journal of Visual and Performing Arts, 5(3). https://doi.org/10.29121/shodhkosh.v5.i3.2024.1657
Aziz, T. A., Maarif, M. S., & Sukmawati, A. (2017). Pengaruh Rekrutmen dan Seleksi Terhadap Kinerja. Jurnal Aplikasi Bisnis Dan Manajemen, 3(2), 246–253. https://doi.org/10.17358/jabm.3.2.246
Bans-Akutey, A., Abdullahi, A. M., & Afriyie, E. O. (2021). Effect of recruitment and selection practices on organisational strategic goals. Annals of Management and Organization Research, 3(1), 35–51. https://doi.org/10.35912/amor.v3i1.1171
Bennington, L., & Habir, A. D. (2003). Human resource management in Indonesia. Human Resource Management Review, 13(3), 373–392. https://doi.org/10.1016/S1053-4822(03)00041-X
Dachner, A. M., Ellingson, J. E., Noe, R. A., & Saxton, B. M. (2021). The future of employee development. Human Resource Management Review, 31(2), 100732. https://doi.org/10.1016/j.hrmr.2019.100732
DALGIÇ, A. (2022). the Effects of Person-Job Fit and Person-Organization Fit on Turnover Intention: the Mediation Effect of Job Resourcefulness. Journal of Gastronomy https://doi.org/10.33083/joghat.2022.136 Hospitality and Travel (JOGHAT), 5(1), 355–365.
Derati Puspita Sari, Sandy, D., Baharuddin, Mira Labi Bandhaso, & Djusniati Rasinan. (2024). Penilaian Efektivitas Sistem Perekrutan Dan Seleksi Dalam Peningkatan Kinerja Karyawan Pada Pt. Bitumen Marasende. JEMSI (Jurnal Ekonomi, Manajemen, Dan Akuntansi), 10(1), 136–142. https://doi.org/10.35870/jemsi.v10i1.1793
Dwi, R., Parmitasari, A., Syariati, A., Islam, U., & Alauddin, N. (2024). MANAJEMEN REKRUTMEN TENAGA KERJA DALAM PERSPEKTIF ISLAM : PRAKTIK DAN PRINSIP Management of Workforce Recruitment in an Islamic Perspective : 7, 245–257.
Ekwoaba, J. O., Ikeije, U. U., & Ufoma, N. (2015). THE IMPACT OF RECRUITMENT AND SELECTION CRITERIA ON ORGANIZATIONAL PERFORMANCE. In Global Journal of Human Resource Management (Vol. 3, Number 2). www.eajournals.org
Esau, M. (2017). Performance management. Gower Handbook of Call and Contact Centre Management, (September 2008), 98-108.
Farida, I., & Setiawan, D. (2022). Business Strategies and Competitive Advantage: The Role of Performance and Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030163
Fitria, N., Wijayanti, I., Santoso, A. B., Romadon, S., & Kraugusteeliana, K. (2023). The Role of Management Information Systems
in Human Resource Competency Development. Jurnal Minfo Polgan, 12(1), 1387–1396. https://doi.org/10.33395/jmp.v12i1.12764
Hidayati, T., Erwandha, A. Z., Tito, D. M., Anabella, L. V., Hisana, S. S., Manajemen, P. S., & Mulawarman, U. (2024). Pengaruh Keterlibatan dan Pemberdayaan Karyawan terhadap Kinerja Karyawan. 4(2), 99–116.
Hoang Dang, L., Nhat Vuong, B., & Duy Huan, D. (2025). How human resource management practices promote job performance through innovative work behavior: does innovative climate matter? Cogent Psychology, 12(1). https://doi.org/10.1080/23311908.2025.2498245
Irianawati, I., Ibrahim, M. B. H., & Irawan, A. (2024). The Effect of Recruitment on Employee Performance Mediated by Job Placement. Advances: Jurnal Ekonomi & Bisnis, 2(6), 308–322. https://doi.org/10.60079/ajeb.v2i6.254
Jaka Purwanggono, C. (2023). EMPLOYEE RECRUITMENT AND PLACEMENT PROCESS STRATEGY USING STRENGTH BASED ASSESSMENT. Sosiohumaniora, 25(3), 458–468. https://doi.org/10.24198/sosiohumaniora.v25i3.43362
Kaur, N., & Kang, L. S. (2021). Person-organisation fit, person-job fit and organisational citizenship behaviour: An examination of the mediating role of job satisfaction. IIMB Management Review, 33(4), 347– 359. https://doi.org/10.1016/j.iimb.2021.12.003
Kristof-Brown, A., Schneider, B., & Su, R. (2023). Person-organization fit theory and research: Conundrums, conclusions, and
calls to action. Personnel Psychology, 76(2), 375–412. https://doi.org/10.1111/peps.12581
Laila, N., Faridz, D., & Kusuma, N. I. (2024). The Effect of Recruitment on Employee Performance at Fokus Kualitas Utama. 3(1), 411–420.
Lee, M. T., & Raschke, R. L. (2016). Understanding employee motivation and organizational performance: Arguments for a set theoretic approach. Journal of Innovation and Knowledge, 1(3), 162–169. https://doi.org/10.1016/j.jik.2016.01.004
Lina, R. (2020). Pengaruh Rekrutmen Terhadap Kinerja Karyawan. Scientific Journal of Reflection: Economic, Accounting,
Management and Business, 3(3), 281–290. https://doi.org/10.5281/zenodo.3930694
Mulyani, S. R., Trinanda, Z., Yeni, F., & Afuan, M. (2024). Employee Performance with Employee Engagement as an Intervening
Variable: Individual Career Development and Competency. Jurnal Manajemen Universitas Bung Hatta, 19(02), 120–128.
Roberts, B. W., & Robins, R. W. (2004). Person-Environment Fit and Its Implications for Personality Development: A
Longitudinal Study. Journal of Personality, 72(1), 89–110. https://doi.org/10.1111/j.0022- 3506.2004.00257.x
Rosyafah, S., & Pudjowati, J. (2024). What are the Key Determinants of Human Resource Management Effectiveness in Enhancing Organizational Financial Performance? Atestasi : Jurnal Ilmiah Akuntansi, 7(1), 525–560. https://doi.org/10.57178/atestasi.v7i1.815
Sholatiah, A., Lestari, R. P., & Komalasari, S. (2022). Teknik Dan Metode Rekrutmen Sebagai Penentu Hasil Kinerja Karyawan. Jurnal Ecoment Global, 7(2). https://doi.org/10.35908/jeg.v7i2.2092
Sumartik, S., & Ambarwati, R. (2023). Manajemen Talenta dan Implementasinya di Industri. In Manajemen Talenta dan Implementasinya di Industri. https://doi.org/10.21070/2023/978-623-464-074-8
Sutrisno, S., Ausat, A. M. A., Suherlan, S., & Rijal, S. (2024). Towards Competitive Advantage: Employee Competency
Development Strategies in Promoting Business Innovation. Jurnal Penelitian Inovatif, 4(2), 601– 608. https://doi.org/10.54082/jupin.369
Tarihoran, A. D. B., Hubeis, M., Jahroh, S., & Zulbainarni, N. (2023). Market-based dynamic capabilities for MSMEs: Evidence from Indonesia’s ornamental fish industry. Journal of Open Innovation: Technology, Market, and Complexity, 9(3). https://doi.org/10.1016/j.joitmc.2023.100123
Tri Karjono. (2024). DIREKTORI INDUSTRI MANUFAKTUR BESAR DAN SEDANG PROVINSI JAWA TENGAH 2024 (Vol. 13, Number Table 10).
Widianti, H. (2022). Manajemen Sumber Daya Manusia (MSDM) : Sebuah pengantar untuk mahasiswa. Penerbit NEM.
Widianti, H. (2025). OF SOCIAL REWARDS AND PARTICIPATORY DECISION-. 10(November 2024), 167– 175.
