Learning Competencies

By the end of the chapter, the learners must be able to:

a. discuss the nature of staffing
b. explain the steps in the recruitment and selection process
c. recognize the different training programs
d. identify the policy guidelines on compensation/wages and performance evaluation/appraisal
e. discuss the importance of employee relations
f. differentiate the various employee movements
g. adopt effective rewards system

CHAPTER 5 STAFFING
LESSON 1: DEFINITION AND NATURE OF STAFFING

Various Definitions of Staffing

 the process of hiring and developing the required personnel to fill in the various positions in
the organization. It involves estimating the number and type of personnel required. It
involves estimating the number and type of personnel required, recruiting and developing
them, maintaining and improving their competence and performance.
 is the managerial function of recruitment, selection, training, developing, promotion and
compensation of personnel.
 “Selecting and training individuals for specific job functions,and charging them with the associated
responsibilities.” - [Link]

Definition According to Koontz and O’Donnell:

“Filling and keeping filled, positions in the organizational structure. This is done by identifying
work-force requirements, inventorying the people available, recruiting, selecting, placing,
promotion, appraising, planning the careers, compensating, training, developing existing staff or
new recruits, so that they can accomplish their tasks effectively and efficiently.”
Sources: [Link]
%20and%20Practice%20of%[Link]

Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the most important
mangerial act along with planning, organizing, directing and controlling. The operations of
these four functions depend upon the manpower which is available through staffing function.
2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all
types of concerns where business activities are carried out.
3. Staffing is a continuous activity- This is because staffing function continues throughout the
life of an organization due to the transfers and promotions that take place.
4. The basis of staffing function is efficient management of personnels- Human resources can
be efficiently managed by a system or proper procedure, that is, recruitment, selection,
placement, training and development, providing remuneration, etc.
5. Staffing helps in placing right men at the right job. It can be done effectively through proper
recruitment procedures and then finally selecting the most suitable candidate as per the job
requirements.
6. Staffing is performed by all managers depending upon the nature of business, size of the
company, qualifications and skills of managers,etc. In small companies, the top
management generally performs this function. In medium and small scale enterprise, it is
performed especially by the personnel department of that concern.
Source: [Link]

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Systems Approach to Staffing
 Is the step-by-step way of filling job positions in organizations, considering variables like
numbers and kinds of human resources needed, open managerial and non-managerial
positions, potential successors to open job positions, etc.

The Management and Non-managerial Human Resources Inventory

 Inventory chart use to identify personnel with management potential

LESSON 2: RECRUITMENT

Recruitment
 A set of activities designed to attract qualified applicants for job position vacancies in an
organization

Sources of Recruitment
The various sources of recruitment may be classified as
1. Internal sources or from within the organisation
a. Job Posting
2. External sources or recruitment from outside
a. Advertisements
b. Unsolicited applications
c. Internet recruiting
d. Employee referrals
e. Executive search firms (head hunters)
f. Educational institutions
g. Professional associations
h. Public and private employment agencies

Source: [Link]

LESSON 3: SELECTION

Selection
 The process of determining from among the applicants who can meet the job requirements
and can be offered the vacant position in the organization.
 The process of choosing individuals who have the required qualifications to fill present and
expected job openings

Selection Process
 Step 1: Establishing the selection criteria
 Step 2: Requesting applicants to complete the application form
 Step 3: Screening by listing applicants who seem to meet the set criteria
 Step 4: Screening interview to identify more promising applicants
 Step 5: Interview by the supervisor/manager or panel interviewers
 Step 6: Verifying information provided by the applicant
 Step 7: Requesting the applicant to undergo psychological and physical examination
 Step 8: Informing the applicant that he or she has been chosen for the position applied for

Types of Job Interview

 Structured interview – the interviewer asks the applicant to answer a set of prepared
questions –situational, job knowledge, job simulation and worker requirement questions
 Unstructured interview – the interviewer has no interview guide and may ask questions
freely

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 One-on-one interview – one interviewer is assigned to interview the applicant
 Panel interview – several interviewers or a panel interviewer may conduct the interview of
applicants; three to five interviewers take turns asking questions

Types of Employment Test

 Intelligence test – designed to measure the applicant’s mental capacity; test the cognitive
capacity of the applicant, speed of thinking and ability to see relationships in problematic
situations
 Proficiency and aptitude test – test the applicant’s present skills and potential for learning
other skills
 Personality test – designed to reveal the applicant’s personal characteristics and ability to
relate with others
 Vocational test or trade test – tests to show the occupation best suited to applicants

Limitation of the Selection Process

 No perfect way to select a firm’s human resources
 Predicting performance is difficult as there is a difference between what an individual can do
at present and what they will do in the future
 Selection process is constantly changing and improving

LESSON 4: TRAINING AND DEVELOPMENT

Training
 Learning given by organizations to its employees that concentrates on short-term job
performance and acquisition or improvement of job-related skills

Development
 Learning given by organizations to its employees that is geared toward the individual’s
acquisition and expansion of his or her skills in preparation for future job appointments and
other responsibilities

Scope of Training
 Conducting the training needs assessment
 Designing the training program
 Implementing the training program
 Evaluating the training

Training Methods
 Presentation Method
 Hands-on-Training
 Group Building Method

Types of Training
o Induction or Orientation of new employee
o On-the-Job Training
o Vestibule Training
o Job Rotation
o Supervisory Training Skills
o Management Development Training
o Conferences, Seminars, Lectures or workshops
o Internship - the period in which a student or trainee works in an organization, sometimes
without pay, in order to gain work experience or satisfy requirements for a qualification.

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LESSON 5: COMPENSATION/WAGES AND PERFORMANCE EVALUATION

Compensation
 All forms of pay given by employers to their employees for the performance of their jobs

Wage
 a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to
an employee, especially to a manual or unskilled worker.
Sources: [Link]

Salary
 A fixed regular payment, typically paid on a monthly basis but often expressed as an annual
sum, made by an employer to an employee, especially a professional or white-collar worker
Source: [Link]

Types of Compensation
 Direct Financial Compensation consisting of pay received in the form of wages, salaries,
bonuses and commissions provided as regular and consistent intervals.

 Indirect Financial Compensation including all financial rewards that are not included in direct
compensation and can be understood to form part of the social contract between the
employer and employee such as benefits, leaves, retirement plans, education, and
employee services.

 Non-Financial compensation referring to topics such as career development and

advancement opportunities, opportunities for recognition, as well as work environment and
conditions

Salary and Wage Policies

The company or any organization must have a clear-cut salary and wage policy. These policy
guidelines will help the organization have better relationships with employees and develop a
more comprehensive employee financial planning program. The salary and wage policy must
appeal to all employees and stimulate them to greater efforts.

Basis for Compensation

 Piecework basis – pay is computed based on number of units produced/completed
 Hourly basis – pay is computed based on number of hours of work rendered
 Daily basis – pay is computed based on number of days of work rendered
 Weekly basis - pay is computed on according to the number of weeks of work rendered
 Monthly basis - pay is computed on according to the number of months of work rendered

Characteristics of Salary and Wage Policy

 The wage and salary plan must be easily understood.
 Salary and wage must be easily computed
 Salaries and wages should be made relevant with efforts
 Incentive plans should provide payment for incentive earnings to employees soon after they
have been earned by efforts exerted to reach standards
 The method of payment should be stable and unvarying.

Performance Appraisal/Evaluation
 Is a process of evaluating an employee in order to arrive at an objective human resource
decisions. Performance appraisal is used by human resource management:
o to determine if a probationary employee will be given permanent status

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 o to determine who should be promoted
o to determine the basis for merit increases
o to determine training needs of employees
 a process undertaken by the organization, usually done once a year, designed to measure
employee work performance.

The purpose of Performance Appraisal

 Administrative
 Developmental

Key Performance Indicators/Key Result Areas

Why Some Evaluation Programs Fail

 Inadequate orientation of the employee being evaluated regarding the objectives of the
program
 Incomplete cooperation of the subject of evaluation
 Bias exhibited by evaluators
 Inadequate time for answering the evaluation forms
 Ambiguous language used in the evaluation questionnaire
 Employee’s job description is not properly evaluated by the evaluation questionnaire used
 Inflated ratings resulting from evaluator’s avoidance of giving low scores
 Evaluator’s appraisal is focused on the personality of the subject of evaluation and not on
the performance
 Unhealthy personality of evaluator
 Evaluator may be influenced by organizational politics

LESSON 6: EMPLOYEE RELATIONS

Employee Relations
 The connection created among employees/workers as they go about their assigned task for
the organization to which they belong
 Employee relations refer to the relationship shared among the employees in an organization.

Three Types of Employees

1. Engaged
o Employees who work with passion and feel a deep connection with their company
o They drive innovation and move the organization forward
2. Not Engaged
o Employees who are essentially “checked out”
o They put time, but not energy or passion into their work
3. Actively Disengaged
o Employees who are not only unhappy at work, but also act out their unhappiness
o They undermine what their engaged coworkers accomplish

Importance of Employee Relations

It is important that employees share a healthy relation with each other at the work place. Let us
find out why employee relations are important in an organization:
 There are several issues on which an individual cannot take decisions alone.
 Work becomes easy if it is shared among all.
 The organization becomes a happy place to work if the employees work together as a
family.
 An individual feels motivated in the company of others whom he can trust and fall back
on whenever needed.
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 Healthy employee relations also discourage conflicts and fights among individuals.
 A healthy employee relation reduces the problem of absenteeism at the work place.
 It is wise to share a warm relation with your fellow workers, because you never know
when you need them.

It is essential that employees are comfortable with each other for better focus and
concentration, lesser conflicts and increased productivity.

Source: [Link]

Barriers to Good Employee Relations

 Anti-social personality; refusal to share more about oneself to co-employees; being a loner
 Lack of trust in others
 Selfish attitude; too many self-serving motives
 Lack of good self-esteem
 Not a team player
 Being conceited
 Cultural/subcultural differences
 Lack of cooperation
 Communication problems, refusal to listen to what others seek to communicate
 Lack of concern for others’ welfare

Ways to Overcome Barriers to Good Employee Relations

 Develop a healthy personality to overcome negative attitudes and behavior
 Find time to socialize with coworkers
 Overcome tendencies to be too dependent on electronic gadgets
 Develop good communication skills and be open to other’s opinion
 Minimize cultural/subcultural tension

LESSON 7: EMPLOYEE MOVEMENTS or PERSONNEL MOVEMENT

Various Types of Employee Movement

1. Promotion – movement of an employee from a lower level to a higher level in the
organizational ladder involving more duties and responsibilities with corresponding increase
in pay, benefits and working condition.
Rationale for Employee Promotion
o Recognition and reward for good performance
o Incentive for employees to improve academically and professionally and to prepare
themselves for new challenges in the job
o Boosts employee morale and develops greater loyalty from employee
Important Factors to Consider for Promotion
o Seniority rule
o Careful analysis of the qualifications of the individual
o Performance evaluation
o Attendance and punctuality
2. Employee Transfer – movement from one job to another of equivalent rank or position at the
same pay class within the organization
Kinds of Employee Transfer
o Temporary Transfer – done for the employee to substitute for an absent employee or for
an employee to learn other duties and responsibilities as preparation for promotion.
Such transfer is initiated by the management in recognition of the other skills and
abilities of the employee to maximize the potential

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 o Permanent Transfer – made to fill in a vacant position in another unit or department
requiring the skills and capabilities of the employee being transferred. In some cases, it
is done to avoid lay-off of the employee
3. Demotion – movement of an employee from the present job to a job of lower rating or grade.
4. Employee Separation and Termination – termination of employment or relationship between
the employee and employer is called separation.
o Resignation by the employee is called voluntary separation
Reasons for Employee Resignation
 Seeking for better job opportunities in other companies or outside of the country
 Seeking for higher wages and better working conditions
 An employee resigns due to misunderstanding with the immediate superior or a co-
employees in the department
 Change of residence
 Change in marital status especially for women
Procedure in Handling Separation of Employment
1. Employee clearance
2. Conduct exit Interview
o Lay-off
o Retrenchment

LESSON 8: REWARDS SYSTEM

Definition of Term
Reward
 Is something given or done in return, especially in the form of salary, a gift, a prize, incentive
pay, benefits or recompense for merit, service or achievement and which may have a
motivating effect on the employee

Types of Monetary Rewards

a) Pay/salary – financial remuneration given in exchange for work performance that will help
the organization attain its goals
b) Benefits – indirect forms of compensation given to employees/workers for the purpose of
improving the quality of their work and personal lives
Classification of Benefits
1. Statutory Benefits – benefits mandated by law
a. 13th month pay
b. Service incentive leave
c. Maternity leave with pay
d. Paternity leave with pay
e. Social Security benefits
f. Philhealth benefits
g. Pag-IBIG or Home Development Mutual Fund benefits
2. Company Benefits – benefits granted by the company outside of those mandated by law.
These benefits could be a result of a collective bargaining agreement (CBA) and those
that are given unilaterally by management
a) Vacation leave with pay
b) Sick leave with pay
c) Bereavement leave
d) Health plan
e) Group life insurance
f) Christmas and mid-year bonuses
g) Housing equity assistance
h) Recreational and physical fitness benefits

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 i) Union leave
c) Incentives – rewards that are based upon a pay-for-perfmance philosophy. Examples are
sales commission, profit sharing etc
d) Executive Pay – compensation package for executives of the organization which consists of
5 components: basic salary, bonuses, stock plans, benefits and perks
e) Stock Options – plans that grant employees the right to buy a specific number of shares of
the organization’s stock at a guaranteed price during a selected period of time.

Non-monetary Rewards – rewards do not pertain to money or currency; refer to intrinsic rewards
that have a positive effect on the employee who receives them
a) Award
b) Praise

References:
Cabrera, et. al. Organization and Management. 2016. Vibal Group Inc.
Pedrito and Purisima Pereda. Human Resource Management Revised Edition. Mindshapers
Co. Inc.

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