A In 1991, according to the Department of Trade and Industry, a record 48,000 British</p>companies went out of business. When businesses fail, the post-mortem analysis is traditionally
0 a5 l! F6 Y9 I) v1 p6 u; i; wundertaken by accountants and market strategists. Unarguably organisations do fail because of
- n8 @3 U, ~/ Y4 e' B0 C+ p! vundercapitalisation, poor financial management, adverse market conditions etc. Yet, conversely,
) U5 e/ f' J, h+ oorganisations with sound financial backing, good product ideas and market acumen often8 e9 D; Z8 ?' ]0 j: M0 Z; G# E
underperform and fail to meet shareholders' expectations. The complexity, degree and sustainment
/ s8 F3 q2 Y* R: B7 v2 F4 f$ yof organisational performance requires an explanation which goes beyond the balance sheet and
, y. T& e% Q9 \; gthe "paper conversion" of financial inputs into profit making outputs. A more complete) {; Y6 H% X$ q: o3 V
explanation of "what went wrong" necessarily must consider the essence of what an organisation% c$ W( Z' m3 t# L( c" Z
actually is and that one of the financial inputs, the most important and often the most expensive, is
+ F$ u( ]* N- {3 ` K! {7 N) G" q `! ypeople.
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( A9 V. B& J; Y4 m! ~5 ~B An organisation is only as good as the people it employs. Selecting the right person for the! h4 y9 Y/ Z H2 G6 `
job involves more than identifying the essential or desirable range of skills, educational and8 M$ P4 S) ^' V
professional qualifications necessary to perform the job and then recruiting the candidate who is# F4 E* l4 |/ F/ w" h3 \. O$ R
most likely to possess these skills or at least is perceived to have the ability and predisposition to
5 ]5 C; ]6 E* ?) N9 B1 @; Hacquire them. This is a purely person/skills match approach to selection.
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) o, E) }* p# w* C0 v& W% H, a% MC Work invariably takes place in the presence and/or under the direction of others, in a
3 m O7 R6 E/ xparticular organisational setting. The individual has to "fit" in with the work environment, with
7 I3 R( J- R+ uother employees, with the organisational climate, style or work, organisation and culture of the- B" W7 C1 p7 H
organisation. Different organisations have different cultures (Cartwright & Cooper, 1991; 1992).
0 }0 Y6 @2 Z! h6 D0 @* E) ZWorking as an engineer at British Aerospace will not necessarily be a similar experience to
, i* F, x* X* U+ Nworking in the same capacity at GEC or Plessey.
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8 ?7 u3 k9 n8 S( PD Poor selection decisions are expensive. For example, the costs of training a policeman are
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+ \/ w h6 P' F' [: j4 G0 D# kabout |