07-Unit7 for business management

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Selection Unit 7
Management Development Page No. 110
Unit 7 Selection
7.1 Introduction
7.2 Steps in the Selection Process
7.3 Placement and Orientation
7.4 Training and Development
7.5 Training Programmes
7.6 Training Methods
7.7 Management Development Programmes
7.8 Performance Appraisal or Merit Rating
7.9 Performance Appraisal Methods
7.10 Exercise
7.1 Introduction
The company identifies the source for prospective candidates and stimulates
them to apply for jobs, under selection, the company chooses the employees
among the applicants. The selection process involves the mutual decision
making. The organisation decides whether or not to make a job offer and how
attractive the job offer should be. The candidate decides whether or not to accept
the job offer.
7.2 Steps in the Selection Process
In practice, the actual selection process will vary between organisations and
between levels in the same organisation. The usual steps areas follows:
1. Completed Application Forms: Filling of the blank application forms by the
candidates is the first step in the selection process. In this form the applicant
gives personal data such as qualification, specialisation, experience etc. The
application forms serve 3 purposes.
Selection Unit 7
Management Development Page No. 111
a) It formally indicates that the applicant desires the position.
b) It provides the interviewer with the basic information he needs, to conduct
c) It becomes a part of the organisation’s personnel data if the applicant is
2. Initial Interview: Those who are selected on the basis of particulars
furnished in the application are called for initial interview by the company.
This is used to make a quick evaluation of the applicant’s suitability for the
job. In effect, the initial interview determines for both the applicant and the
company whether or not the selection process should proceed.
3. Employment Tests: For further assessment of a candidate’s nature and
abilities, some tests are used in the selection process. Psychologist and other
experts have developed some tests by which a candidate’s characteristics,
his likes, dislikes, his intelligence, dexterity (special skills) his capacity to
learn etc., can be estimated. Thus, there are aptitude tests, interest tests,
intelligence tests, trade or profession tests, personality tests etc.
4. Background Investigation: If the candidate has been found satisfactory at
the interview, and if his performance is good in employment test, the
employer would like to get some important personal details about the
candidate such as his personal character, past history, background of the
family, verified by the people mentioned in the application. The employer may
also contact his neighbours or contact the present and former employers of
the candidate.
5. Physical or Medical Examination: Medical examination is another step in
the selection procedure. The objectives of this examination are:
a) To check the physical fitness of the applicant for the job applied for.
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Management Development Page No. 112
b) To protect the company against the unwarranted claims for compensation
under certain legislation such as Workmen’s Compensation Act.
c) To prevent communicable diseases entering the business concern.
7.3 Placement and Orientation
The process of placing the right man on the right job is called placement. It is the
determination of job to which a selected candidate is to be assigned and his
assignment to that job. Placement is important part of staffing. An employee
should be placed on a position where there is scope for full use of his skill and
At the time of placement of employees, attention is to be given for orientation and
training to the employee in order to enable him to adjust himself to the work and
make him feel at home with his colleagues. Usually, orientation is given in the
form of Lecture, Picnic, Party and presentation of booklets, explaining the history,
objectives, policies and programmes of the organisation.
7.4 Training and Development
Training is the act of increasing the knowledge and skill of an employee for doing
the particular job. It is concerned with imparting specific skills for particular
purposes. Development refers to programmes that attempt to improve technical,
human relations and conceptual skills of an employee or manager.
7.5 Training Programmes
The need to train new employees or individuals who are being promoted is self
evident. New jobs require training in new skills. Even experienced employees
need systematic training. The training needs of such employees are not easy to
determine. For this purpose performance appraisal, analysis of job requirements
or survey of personnel to find out the problems they are facing and actions they
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Management Development Page No. 113
require must be made. Once the training needs of employees have been
identified appropriate training methods should be used.
7.6 Training Methods
There are different training methods that can be used to train new and old
employees. One such method is on the job training. This includes:
a) J ob rotation in which the employee, over a period of time, works on a series
of jobs thereby learning a variety of skills.
b) Internship in which job training is combined with related class room
c) Apprenticeship in which the employee is trained under the guidance of highly
skilled co-worker.
Another method is off the job training. This takes place outside the actual work
place but attempts to stimulate actual working conditions. This type of training
a) Vestibule training: In which employees work on the actual equipment and in
a realistic job setting but in a different room.
b) Behaviourally experienced training: Some of the method used in
experiential learning. For eg. Business games, case study, problem solving
method are employed so that the trainee can learn the behaviour appropriate
for the job.
c) Classroom training: Finally off the job training may focus on the classroom
training through discussion, lecture, films etc.
7.7 Management Development Programmes
Management development is designed to improve the overall effectiveness of
managers in their present position to prepare them for greater responsibility in
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Management Development Page No. 114
As in other training programmes, there are on the job and off the job
management development programmes.
There are 4 major on the job development method:
a) Coaching: The training of a subordinate by his immediate superior.
b) Job rotation involves shifting managers from position to position so that they
may broaden up their experience.
c) Training Positions: Trainees are given staff posts immediately under a
manager, often with title ‘assistance’. Such assignments give trainees a
chance to work with outstanding managers and learn from them.
d) Plant work activities: These involve giving trainees important work
assignments as a means of developing their experience and ability. Trainees
may also be asked to hold a task force or participate in an important
committee meeting. In this manner they gain insight into how organisations
Off the job development methods include classroom instructions and
management development programmes sponsored by universities and other
organisations like management and technical institutes.
7.8 Performance Appraisal or Meri t Rating
Performance appraisal is one of the universal practices of management today. It
refers to the formal procedures used to evaluate personality contributions and
potentiality of employees. Appraisals can be made by superiors, subordinates or
colleagues. They can also be made by a special committee consisting of two or
three appraisers. There is also a self appraiser in which each employee
evaluates his own performance.
According to Edwin B. Flippo, ‘Merit rating is a systematic, periodic and as far as
humanly possible an impartial rating of an employees excellence in matters
pertaining to his present job and to his potentialities for a better job’.
Selection Unit 7
Management Development Page No. 115
Purposes of appraisal:
Performance appraisal serves the following purposes:
1. It can serve as a basis of promotion or job change.
2. By identifying the strengths and weaknesses of an employee it serves as a
guide to formulating a suitable training and development programme.
3. It serves as a feed back to the employee on his own performance level so
that he can improve his performance.
4. Performance appraisal provides a basis for payment of wages, bonus and
Essentials of a good performance evaluation method:
Following are the important features of a good appraisal system:
1. It must be simple.
2. It must be easily understandable.
3. It must have the support of the people who administer it.
4. It must be suitable to the organisation.
5. The system should be valid and reliable.
6. The system should have built in incentive i.e. reward should follow
satisfactory performance.
7. The system should be periodically evaluated.
Criteria of performance evaluation:
There are a large number of criteria which may be used to measure performance
of an employee. Depending on the means one or more of the following criteria
may be used:
1. Quantity and quality of output.
2. Length of service.
3. Number of accidents.
4. Number of absents.
5. Cost per unit.
6. Degree of knowledge of work, corporate goals, policies etc.
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7.9 Performance appraisal methods
1. Ranking methods: The simple method of performance appraisal is to
compare one man with all other men and placing in a simple rank order.
2. Rating Scale: As the very name implies this method provides some kind of
scale for measuring absolute differences between individuals.
For eg. 1 2 3 4 5
1 = Exceptionally good
2 = Above average
3 = Average
4 = Below average
5 = Poor
3. Check list method: Sometimes the methods used for performance
evaluation is a list consisting of a number of statements about a worker and
his behaviour. Examples of such statements is given below:
a) Is the employee really interested in the job.
b) Is his attendance satisfactory.
c) Is his work satisfactory.
d) Does he possess good working knowledge and so on.
The rater then checks to indicate if the answer to a statement is positive or
4. Forced Choice Description: Under this method, the rater might be asked to
state which of the following statements is more descriptive of the employee in
a) Gives good instruction to his subordinates.
b) Can be depended upon to complete any job assignment.
5. Confidential Report: A confidential report about an employee by his
immediate supervisor is also a method to evaluate the performance with a
view to give promotion or transfer.
Selection Unit 7
Management Development Page No. 117
7.10 Exercise
1. Explain the steps involved in the selection process.
2. Briefly explain the performance appraisal.
3. Write short notes on:
a) Training methods
b) Management Development Programmes

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