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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.

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MGT601 - SME Management - Lecture Handout 10

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This lecture deals with the policy-making issues on short and medium term basis. The importance of these issues is self evident in this lecture. This lecture reflects issues where we feel we may achieve strong impacts in the short and medium-term, i.e. until 2011. They should therefore become major topics of our deliberation and shape the formulation of our SME policy.

Issues in Policy Development (Short and Medium-Term Issues)

Business Environment

The large size of the SME sector limits the ability of the Government and business support institutions to achieve competitive coverage by support programs. This is a fundamental reality in most countries of the world and it is why policy framework and regulatory measures are of tremendous importance when SME promotion is concerned. It is agreed that only appropriate policy tools and regulations than with support programs can achieve much more. Likewise, SME development is hampered more by inappropriate regulations than compensated by means of appropriate support programs.

Most of the developed nations therefore have mechanisms in place to revert the biases against small firms. For instance, the United Kingdom introduced the “Think Small First” initiative, which requires all Government organizations to assess the impact of their actions on small business prior to implementation. Furthermore, participation of small business in government procurement is being facilitated as a matter of routine.

The result of such policies is that (unfortunate) surprises to small firms are less frequent. It is made sure that businesses potentially affected are consulted and informed of any forthcoming policy shifts so as to avoid negative impacts. They are also allowed an adequate grace period for the adjustment of economic activity and there is no retroactivity of new regulations. Besides this, special attention is paid to minimizing the room for bureaucratic discretion while developing policy rules or procedures. All such mechanisms are missing in present policy or legal environment in Pakistan. The absence of a specialized, uniform legal framework for the development of SME hampers SME operations8.

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