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A In 1991, according to the Department of Trade and Industry, a record 48,000 British companies went out of business. When businesses fail, the post-mortem analysis is traditionally undertaken by accountants and market strategists. Unarguably organisations do fail because of undercapitalisation, poor financial management, adverse market conditions etc. Yet, conversely, organisations with sound financial backing, good product ideas and market acumen often underperform and fail to meet shareholders expectations. The complexity, degree and sustainment of organisational performance requires an explanation which goes beyond the balance sheet and the paper conversion of financial inputs into profit making outputs. A more complete explanation of what went wrong necessarily must consider the essence of what an organisation actually is and that one of the financial inputs, the most important and often the most expensive, is people.
B An organisation is only as good as the people it employs. Selecting the right person for the job involves more than identifying the essential or desirable range of skills, educational and professional qualifications necessary to perform the job and then recruiting the candidate who is most likely to possess these skills or at least is perceived to have the ability and predisposition to acquire them. This is a purely person/skills match approach to selection.
C Work invariably takes place in the presence and/or under the direction of others, in a particular organisational setting. The individual has to fit in with the work environment, with other employees, with the organisational climate, style or work, organisation and culture of the organisation. Different organisations have different cultures . Working as an engineer at British Aerospace will not necessarily be a similar experience to working in the same capacity at GEC or Plessey.
D Poor selection decisions are expensive. For example, the costs of training a policeman are about ￡20,000 . The costs of employing an unsuitable technician on an oil rig or in a nuclear plant could, in an emergency, result in millions of pounds of damage or loss of life. The disharmony of a poor person-environment fit is likely to result in low job satisfaction, lack of organisational commitment and employee stress, which affect organisational outcomes i.e. productivity, high labour turnover and absenteeism, and individual outcomes i.e. physical, psychological and mental well-being.
E However, despite the importance of the recruitment decision and the range of sophisticated and more objective selection techniques available, including the use of psychometric tests, assessment centres etc., many organisations are still prepared to make this decision on the basis of a single 30 to 45 minute unstructured interview. Indeed, research has demonstrated that a selection decision is often made within the first four minutes of the interview. In the remaining time, the interviewer then attends exclusively to information that reinforces the initial accept or reject decision. Research into the validity of selection methods has consistently demonstrated that the unstructured interview, where the interviewer asks any questions he or she likes, is a poor predictor of future job performance and fares little better that more controversial methods like graphology and astrology. In times of high unemployment,! recruitment becomes a buyers market and this was the case in Britain during the 1980s.
F The future, we are told, is likely to be different. Detailed surveys of social and economic trends in the European community show that Europes population is falling and getting older, The birth rate in the Community is now only three-quarters of the level needed to ensure replacement of the existing population. By the year 2023, it is predicted that more than one in four Europeans will be aged 60 or more and barely one in five will be under 20. In a five-year period between 1983 and 1988 the Communitys female workforce grew by almost six million. As a result, 51% of all women aged 14 to 64 are now economically active in the labour market compared with 78% of men.
G The changing demographics will not only affect selection ratios. They will also make it increasingly important for organisations wishing to mainta in their competitive edge to be more responsive and accommodating to the changing needs of their workforce if they are to retain and develop their human resources. More flexible working hours, the opportunity of work from home or job share, the provision of childcare facilities etc., will play a major role in attracting and retaining staff in the future.
Questions 1-6
Do the following statements agree with the views of the writer in Reading Passage 2?
In boxes 1-6 on your answer sheet write
YES if the statement agrees with the writer
NO if the statement does not agree with the writer
NOT GIVEN if there is no information about this in the passage
1. Organisations should recognise that their employees are a significant part of their financial assets.
2. Open-structured 45 minute interviews are the best method to identify suitable employees.
3. The rise in the female workforce in the European Community is a positive trend.
4. Graphology is a good predictor of future fob performance.
5. In the future, the number of people in employable age groups will decline.
6. In 2023, the percentage of the population under 20 will be smaller than now.
Questions 7-9
Complete the notes below with words taken from Reading Passage . Use NO MORE THAN ONE or TWO WORDS for each answer.
Write your answers in boxes 7-9 on your answer sheet.
A In 1991, according to the Department of Trade and Industry, a record 48,000 British companies went out of business. When businesses fail, the post-mortem analysis is traditionally undertaken by accountants and market strategists. Unarguably organisations do fail because of undercapitalisation, poor financial management, adverse market conditions etc. Yet, conversely, organisations with sound financial backing, good product ideas and market acumen often underperform and fail to meet shareholders expectations. The complexity, degree and sustainment of organisational performance requires an explanation which goes beyond the balance sheet and the paper conversion of financial inputs into profit making outputs. A more complete explanation of what went wrong necessarily must consider the essence of what an organisation actually is and that one of the financial inputs, the most important and often the most expensive, is people.
B An organisation is only as good as the people it employs. Selecting the right person for the job involves more than identifying the essential or desirable range of skills, educational and professional qualifications necessary to perform the job and then recruiting the candidate who is most likely to possess these skills or at least is perceived to have the ability and predisposition to acquire them. This is a purely person/skills match approach to selection.
C Work invariably takes place in the presence and/or under the direction of others, in a particular organisational setting. The individual has to fit in with the work environment, with other employees, with the organisational climate, style or work, organisation and culture of the organisation. Different organisations have different cultures . Working as an engineer at British Aerospace will not necessarily be a similar experience to working in the same capacity at GEC or Plessey.
D Poor selection decisions are expensive. For example, the costs of training a policeman are about ￡20,000 . The costs of employing an unsuitable technician on an oil rig or in a nuclear plant could, in an emergency, result in millions of pounds of damage or loss of life. The disharmony of a poor person-environment fit is likely to result in low job satisfaction, lack of organisational commitment and employee stress, which affect organisational outcomes i.e. productivity, high labour turnover and absenteeism, and individual outcomes i.e. physical, psychological and mental well-being.
E However, despite the importance of the recruitment decision and the range of sophisticated and more objective selection techniques available, including the use of psychometric tests, assessment centres etc., many organisations are still prepared to make this decision on the basis of a single 30 to 45 minute unstructured interview. Indeed, research has demonstrated that a selection decision is often made within the first four minutes of the interview. In the remaining time, the interviewer then attends exclusively to information that reinforces the initial accept or reject decision. Research into the validity of selection methods has consistently demonstrated that the unstructured interview, where the interviewer asks any questions he or she likes, is a poor predictor of future job performance and fares little better that more controversial methods like graphology and astrology. In times of high unemployment,! recruitment becomes a buyers market and this was the case in Britain during the 1980s.
F The future, we are told, is likely to be different. Detailed surveys of social and economic trends in the European community show that Europes population is falling and getting older, The birth rate in the Community is now only three-quarters of the level needed to ensure replacement of the existing population. By the year 2023, it is predicted that more than one in four Europeans will be aged 60 or more and barely one in five will be under 20. In a five-year period between 1983 and 1988 the Communitys female workforce grew by almost six million. As a result, 51% of all women aged 14 to 64 are now economically active in the labour market compared with 78% of men.
G The changing demographics will not only affect selection ratios. They will also make it increasingly important for organisations wishing to mainta in their competitive edge to be more responsive and accommodating to the changing needs of their workforce if they are to retain and develop their human resources. More flexible working hours, the opportunity of work from home or job share, the provision of childcare facilities etc., will play a major role in attracting and retaining staff in the future.
Questions 1-6
Do the following statements agree with the views of the writer in Reading Passage 2?
In boxes 1-6 on your answer sheet write
YES if the statement agrees with the writer
NO if the statement does not agree with the writer
NOT GIVEN if there is no information about this in the passage
1. Organisations should recognise that their employees are a significant part of their financial assets.
2. Open-structured 45 minute interviews are the best method to identify suitable employees.
3. The rise in the female workforce in the European Community is a positive trend.
4. Graphology is a good predictor of future fob performance.
5. In the future, the number of people in employable age groups will decline.
6. In 2023, the percentage of the population under 20 will be smaller than now.
Questions 7-9
Complete the notes below with words taken from Reading Passage . Use NO MORE THAN ONE or TWO WORDS for each answer.
Write your answers in boxes 7-9 on your answer sheet.
