1. MGT601 SME MANAGEMENT

2. Recruitment, Selection And Training – II
Lesson 27
Recruitment, Selection And Training – II

3. Chapter Learning Objectives
This lecture deals with;
Selection
Selection Process
Wage and Salary Administration

4. Selection
Selection refers to the process of selecting right people for right job with requisite qualifications and competence.

5. Selection Process Application Blank Personal Interview
Checking References
Employment Tests
Final Interview
Physical Examination
Orientation
Wage and Salary Administration

6. 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.

7. 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;
Not spending enough time analyzing the requirements of the job to be filled.
Failing to ask right questions to test strengths and weaknesses of the candidate,
Relying too much on gut reaction instead of making an objective analysis.

8. Checking References
References listed by the applicant should be cross – checked through telephone and preferably through a written letter.

9. Employment Tests
Though not a sole criterion of selection, these tests are making the employee selection more efficient. These are;-
Aptitude test to measure mechanical, electrical, manual dexterity and other potential talent.
Achievement test to measure performance (skill proficiency)
Intelligence test to measure general mental abilities e.g. verbal ability, reasoning, comprehension etc.
Personality test to select managers.

10. 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.

11. Physical Examination
Physical examination to determine whether the prospect meets health standards demanded by the job.

12. Orientation
The new employee should be provided thorough orientation regarding company policies and specific nature of the job. It markedly reduces apprehension during the first few days of the employee.
He should be introduced to colleagues, explained as to how the job fits into overall goals of the company, the operations and conditions of employment.

13. Orientation…..
Some employers have” Employee Handbooks” containing written information about salient aspects of company e.g. company’s expectations of employees, pay-policies, working conditions, fringe benefits etc.

14. Wage and Salary Administration
Principal object of a compensation plan is to motivate employees to achieve higher levels of performance. Following are the elements of wage and salary administration.
1. Wage & Salary Level.
2. Wage & Salary Structure.
3. Individual Wage Determination.
4. Method of Payment.
5. Individual Compensation or fringe benefits.
6. Management Control.

15. Wage & Salary Levels and Structure
The wages should be established by reference to the following:-
1. Prevalent Wage Levels in Industry.
2. Compliance with Minimum Wages Laws and other enactments governing compensation.
3. Standards and Values of the entrepreneur.
4. Consent of Trade Union.
By adhering to the above, a small firm can hire and retain productive work force.

16. Wage Determinations and Method of Payment
Determination of compensation for each position is the second step in salary administration. More responsibilities and more difficult a job, higher should be the pay-packet.
Also establish a range of compensation for each position.

17. Wage Determinations and Method of Payment…..
The wage structure must be such that the staff has the motivation to work for vertical movement.
The incentives and fringe benefits associated with each position should also be settled.
To attract qualified, hardworking and loyal staff, small firms may introduce special awards.
Benefits to be offered to managers pose special problem.

18. Continued…. The popular forms of benefits given to them include:
1. Stock Option.
2. Profit Sharing.
3. Use of Company Vehicle.
4. Club Membership.

19. Continued….
Small firm should use its limited resources carefully and devise a productive salary administration. Broad objectives of a good salary program include; maintenance of competitiveness, capacity to attract managers of superior caliber, rewarding superior performance and motivating staff to achieve higher production levels.

20. Continued… Two more ingredients of efficient compensation plan are:-
1. It should link reward and performance,
2. It should ensure payment of reward as soon as after achievement.

21. Compensation plans suitable for small businesses are:
1. Straight salary.
2. Hourly wage-to reward employees whose work is difficult to measure or where employer has no control over output.
3. Piece rate.
4. Commission based on sales.
5. Combination of salary and commission.

22. Thanks you
Happy Learning,
Keep Learning