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MGT601 - SME Management - Lecture Handout 26

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Talented employees are the key assets of the company. The problem with small business entrepreneur is that it cannot afford the luxury of a full time specialist in personnel area. The entrepreneur himself is generally a novice and tends to look after this aspect rather haphazardly. Either the owner personally takes care of the personnel function or delegates it to an employee who performs it along with his main job. The general tendency is to hire the first person who comes the way and accepts the lowest salary. Their basic thrust is on marketing, regarded as primary to existence.

Defining Job Requirement

The pre-requisite to efficient selection is the systematic defining of requirements of each task. The identification process has three phases;

  • Conducting job analysis,
  • Developing job descriptions, and
  • Preparing job specifications.

Job Analysis

It is the process of investigation and collection of pertinent information about each task in terms of skill, abilities, duties and responsibilities. It covers;

  1. Job title,
  2. Department to which it relates,
  3. Line of supervision,
  4. Description of job including major and minor duties
  5. Relationship with other jobs i.e. promotional avenues. Transfer, possibilities, experience required etc.
  6. Unique job characteristics (location, physical setting),
  7. Type of material and equipment used,
  8. Educational qualifications,
  9. Experience,
  10. Mental and manual dexterity,
  11. Physical requirements,
  12. Working conditions.

Job Description

It consists of a written statement of the major and minor duties involved in each task along with a description of responsibilities, work conditions and task requirements e.g. hazards, time involvement etc. The job description, therefore, focuses on what, why, when and how tasks are to be performed.

Job Specification

It describes the salient features of the person expected to fit in the job. It enumerates qualities, knowledge, skills and abilities an individual should possess to perform satisfactorily along with such other characteristics as planning, leadership and decision-making abilities, experience, education etc. It provides a standard against which to measure how well an applicant matches the job.

Recruitment- Engaging the Employee

It is the translation of job specifications into actual recruitment of the employee by exploring main sources of supply. The major sources of supply could be;

  1. Current employees or references i.e. asking friends and acquaintances to provide a good person.
  2. Newspaper advertisement specifying the requirements of the position to attract individual with appropriate qualification.
  3. Drop-in applicants i.e. individuals who occasionally drop in to inquire if any job is available. It is better to take down some information relating to them.
  4. Unsolicited application i.e. those who may have applied in anticipation of vacancy. Maintenance of record of them could be advantageous.
  5. Technical journals to look up to candidates with specific technical qualifications and background.
  6. Universities, colleges and technical institutes.
  7. Employment agencies – public and private.
  8. Former employees who may have voluntarily quit.

Related Content: MGT601 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of SME Management