1. Getting and keeping the competitive edge
In order to build an effective business, any CEO/business manager must build and maintain an effective, capable and well-functioning company/business operation. It goes without saying that good, effective organisations are made up of good, productive people. The employment of good employees/workers is thus one of the most important responsibilities of any manager/business owner.
He/she must ensure that the core capabilities of the organisation/business are maintained.
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Core capabilities or core competencies is a skills cluster at the centre of a business that drives the competitive edge and success and which enables the long term corporate prosperity in pursuance of its strategy. Any business must have it.
- It enables the company to deliver its core function and service, and maintain its competitive advantage.
- This skills set exponentially increases the customer?s perceived value and customer benefit in respect of the company.
- It enables growth and a gateway to new markets.
The core capabilities of a factory producing electrical motors will differ significantly from a cattle farming operation, which will differ significantly from a fruit farming operation, and even be more different from an electrical operation doing solar installations, or catering business.
There are a number of spectacular examples in South Africa recently, where CEO?s/managers have failed to recognise the unique contribution of these core capabilities to their businesses, and failed to maintain these core capabilities ? in the interest of business transformation, with a consequent loss in market share and ultimate failing businesses.
If it is the CEO/manager?s responsibility to maintain this capability of the organisation, then it goes without saying that it is his/hers responsibility to ensure a constant availability/supply of the best employees, with the appropriate skill set to maintain the core capability of the company, and to execute the business strategy.
The proper staff selection is an imperative for building and maintaining a competent workforce ? and it remains the responsibility of the MD/CEO of the company.
The problem is that most organisations employ people on the strength of an interview, or by just considering their CV?s.
Consider the following realities from a people selection perspective:
- Personnel selection is based on individual differences between people. Personal attributes differ greatly from one person to another. Different persons possess different unique traits and abilities. This also influences job performances, which might vary significantly amongst individuals.
- Undifferential acceptance of all candidates can only lead to gross misuse of human and economic recourses.
- Selection measures (in the case of staff selection), are designed to make a distinction between applicants, and to eliminate applicants from the process, and in order to possess adequate validity, they must do so.
- Selection is the process of trying to determine which individual will best match particular jobs in the organisational context.
Consider this example: the horses in both these photos are prime animals ? well trained, strong and very capable. Though they are all horses ? yet they possess distinctly different capabilities and characteristics. These animals are not interchangeable in any of the two work tasks depicted here.
This is the same with people.
Selection is a process of finding the most suitable candidate for a position. Note that the most suitable is not necessarily the best skilled candidate for the position. Sometimes other factors need to be considered as well, ? more about this later.
The two questions that must be answered in any selection process are:
- Can the candidate do the job? and
- Will the candidate do the job?
One needs a ?yes? to both questions before appointing a person. The first question is mostly answered by considering skill, capability- and psychometric assessment results. The second question is answered by considering the candidate?s references, history, track record, motivational factors and environment.