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MGT601 - SME Management - Lecture Handout 35

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The application of industrial technology, as indeed of all technologies, is a means to an end, the end being the development goals of each country. An appropriate technology path has therefore to be derived from the development goals adopted. Industrial development is a centre piece of the development process. It cannot be viewed only as the means of producing a large variety of goods and services by modern processes and techniques; it must result in adequate employment opportunities, greater income generation and distribution to poorer sections and improvement in the conditions of life for the larger community in developing countries.

Technology is in fact not applied in isolation

Technology is in fact not applied in isolation but as part of the performance of one economic activity or another which contributes to development. in such activity, say industrial development, technology is again applied, not alone, but matching with investment, skills, resources and other related factors, in other words, the application of industrial technology cannot be divorced from the total context of industrial development. When considering industrial technology, and for that matter any technology a balance has therefore to be struck between considering it is the abstract and treating it as totally indistinguishable from the economic activity itself. To strike such a balance between these two trends, either of which by itself is likely to be misleading. There is a close interrelationship between industry & technology in general. Perhaps no other single branch of economic activity influences or gets influenced by technology more than industry.

Within this over-all framework, attention will be focused on certain major elements for purposes of national and international action. The linkage of technology to industrial development and industrial development to over all development goals will be successful only in the context of the formulation of relevant policy measure by national government. Technology policy and planning therefore becomes an important element. The second major element is the development of technological capabilities in each country which is a prerequisite for the selection, acquisition, adaptation, absorption or development of technology. This will involve among other things the building up of institutions and the training manpower.

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MGT601 - SME Management - Lecture Handout 27

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It involves a number of activities which may be performed either by the owner-manager himself or with the assistance of specialists. Following is the process of selection.

  • Application Blank
    It contains a written record of candidates qualifications, name, experience, references etc. from a perusal of the record, a broad idea can be formed about the applicant’ potential.
  • Personal Interview
    The purpose of this interview is to ascertain technical competence of the candidate and his capacity to meet the requirements of the position. The fundamental mistakes committed in interviewing are;
    1. Not spending enough time analyzing the requirements of the job to be filled.
    2. Failing to ask right questions to test strengths and weaknesses of the candidate,
    3. Relying too much on gut reaction instead of making an objective analysis.
  • Checking References
    References listed by the applicant should be cross – checked through telephone and preferably through a written letter.
  • Employment Tests
    Though not a sole criterion of selection, these tests are making the employee selection more efficient. These are;-
    1. Aptitude test to measure mechanical, electrical, manual dexterity and other potential talent.
    2. Achievement test to measure performance (skill proficiency)
    3. Intelligence test to measure general mental abilities e.g. verbal ability, reasoning, comprehension etc.
    4. Personality test to select managers.
  • Final Interview
    It is designed to final impression based on earlier assessments and particularly to ascertain interpersonal competence (capability to go along well with others), whether he has autocratic/democratic disposition, cooperativeness, rigidity flexibility. The interviewer should do well to adopt a balanced approach. He should guard against “Halo effect” i.e. forming rational judgment on the basis of first impression. What happens is that the interviewer forms a favorable or unfavorable impression of the applicant very early and searches for confirmation. To guard against it, the interviewer should withhold judgement until after the interview.

  • Read more: MGT601 - SME Management - Lecture Handout 27