CHAPTER - SIX
THE STAFFING FUNCTION
Chapter Objectives: At the end of this chapter you will be able to:
Discuss the managerial function of staffing.
Describe the major elements of staffing.
Explain staffing techniques, process & principles.
After jobs are identified, grouped, and the organization structure
created, the next managerial task is that of staffing. Staffing is the
process of identifying human resource needed, procuring the
necessary employees, training, utilization, & separation of those
employees. It is a separate field of study by itself & known as human
resource. Management (HRM) Human resource refers to the sum total
of all the inherent abilities, acquired knowledge, and skills represented
by the aptitudes altitudes, & talents of an organizational work force.
Major elements of staffing function:- procurement, training,
maintenance & utilization & separation.
6.1 The procurement function
The procurement function is concerned with determining & obtaining
the proper kind of personnel both in quality & quantity. It specifically
deals with:
(a) The determination of human resource requirements both in quality
& quantity,
(b) Their recruitment, selection, and placement.
Human Resource Planning (HRP)
HRP is the process of translating over all organizational objectives,
plans and programs to achieve specific performance into workforce
needs it is an integral part of corporate planning. Scarcity of personnel
in some specialized areas; high expenses involved in hiring, developing
and maintaining employees; and rapid technological changes which
bring about obsolescence & need for new skills and knowledge are
among the reasons for human resource planning.
The process of personnel planning
1. Analyzing organizational objectives & plans:
As the primary use of human resources planning is to provide the
orgn with the
people needed to achieve organizational objectives the basis for
personnel planning
are such corporate plans. All organization plans entail need for
human resources.
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2. Determining overall human resource needs:
This is predicting the need for and the availability of people with
required
qualities needed to perform the present & future jobs. In order to
determine such
overall needs, it is necessary to determine:
a) The job needs and
b) The volume of the job.
The Demand & Supply aspects of human resources management
Demand: An organization’s future demand for employees is central to
employment planning. The demand for human resource is caused by
external challenges that may affect organizational operations
(economic, social, technological, competition); major organizational
/internal decisions such as strategic plans on growth, production,
marketing, etc; work force factors such as retirement, resignation,
termination, and death.
Supply /sources: There are two sources of supply – internal &
external.
(a) The internal supply /sources: consists of present employees who
can be promoted and
/or transferred, to meet anticipated needs.
(b) External supply/source: It becomes important when there are no
replacements or
when the opening is for an entry – level job. Labor mkt analysis is
every important
activity to estimate future supply of human resources.
3. Taking inventory of existing personnel
It is important to take inventory of the available personnel with their
qualifications to know to what extent the organization can meet its
personnel needs from within. As the plan is for future, this inventory
has to take into consideration expected changes like promotions,
transfers, retirements, deaths, quits, resignation, and others.
4. Determining net new personnel requirement: this requires
overall personnel requirement with personnel inventory where the
difference is net new requirement.
5. Developing action plans: once the supply & demand of human
resource are
estimated, adjustments may be needed. When the internal supply
of workers exceeds
the firm’s demand a human resource surplus edists. Most
employers respond to a
surplus with a hiring freeze. If there are openings, no hire but
reassignment of existing
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employees is conducted. Voluntary departures may reduce the
surplus.
When the internal supply cannot fulfill the organization’s needs, a
human resource shortage exists. In the short run, external sources will
be used, but in the long run staff development efforts will serve to fill
the vacancies. So, recruitment, retention, promotion, transfer, training,
downsizing, etc can be part of the action plans.
Recruitment
Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organization. Sources of
man power can be internal or external.
Vacancies can be filled in by those existing employees of the
organization through transfer, promotion, and recall from lay-off.
Transfer is the movement of employee from one job to another job on
the same occupational level and at the same level of wages /salary and
other benefits. Promotion is the advancement of an employee to better
job interims of greater responsibilities, more prestige or status, greater
skills, & increased rate of pay. Internal recruitment has the advantages
of getting familiar employees and less costliness while the
disadvantages are that it narrows down selection options, results in
organizational in breading (preventing new blood & new outlooks from
coming in).Vacancies can be filled from external sources by people
outside the organization, Important sources can be the labor market
through vacancy announcements (using TV, Radio, Newspaper,
billboards, etc) and un-solicitude applicants (walk ‘in’, write – in),
educational institutions, employment agencies, labor unions, & others.
Selection
The selection process is a succession of hurdles. The selection
procedure is the sequence of functions adopted in a given case for the
purpose of ascertaining whether or not candidates possess the
qualifications called for by the specific job. The process may include:
a) Preliminary interview by which the obvious unqualified are
screened out, and
observable factors and preliminary checks are made say, on
expectations and
interests.
b) Filling application form by which factual information is obtained
with carefully
designed questions including identification information, personal
information,
physical characteristics, education, experience, etc.
c) Reference letters which can be specifically addressed or written in a
“to whom it
may concern” form, confidential or non-confidential, and refer to
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character,
experience, and other elements.
d) Employment interview which is most of the time used as a single
screening
mechanism provides an opportunity to have face-to-face contact,
serves to verify
information acquired through other methods, and enables the
employer to
investigate the candidates’ ability in work related areas.
e) Employment tests are practical examination of the candidate’s
abilities and
knowledge in the areas of the future job assignments; they may
include
intelligence tests, achievement tests, aptitude tests and others.
f) Physical examination is carried out to check the physical fitness of
the candidates,
to prevent existing employees from the communicable diseases and
from
unwarranted claims in the form of medical and insurance expenses.
Placement and Induction/Orientation
Those candidates who have been selected should be given placement
letters that state their employment and specific positions and other
employment related matters. Induction/orientation has to do with
familiarizing the new employee with the organization.
This can be done by oral communication and physical observation,
written media like manuals, guidelines, and others, The new employee
will be given information on the organization’s history, products,
operations, policies and ru’es, services available, opportunities and
other issues.
6.2 TRAINING/DEVELOPMENT
Training is any process by which the aptitudes, skills, and abilities of
employees to perform specific jobs are increases. It is the act of
increasing the knowledge and skills of an employee for doing a
particular job. Development is the systematic process of education,
training, and growing by which a person learns and applies
information, knowledge, skills, attitudes and perceptions. Development
is said to include training to increase skills and knowledge to do a
particular job and education concerned with increasing general
knowledge and understanding. This shows that development involves
learning opportunities aimed at the individual growth but not restricted
to a specific job. Training is usually related to operational or technical
employees while development is for managers and professionals.
However, they are also many times used interchangeably.
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Training has many objectives which include:
a) To provide the knowledge, skills and attitudes (way of thinking
about /behaving
to wards) for individuals to undertake their current jobs more
effectively. Part of
the process also is to assist employees at all levels to extend their
untapped talents
and to understand the implications and significance of their roles.
b) To help employees to become capable of assuming other
responsibilities within an
organization either at more senior or at their current levels
(developing their
potentials).
c) To help employees to adapt to changing circumstances facing
organizations such as
new technologies, new business environment, new products, etc.
d) To reduce waste and increase efficiency.
e) To minimize input use and maximize output.
f) To relieve supervisors from close supervision and get time for
other duties.
Training Methods
There are many training methods to be used. Appropriateness of
training techniques depends on: cost effectiveness, desired program
content (teaching specific skills, providing knowledge, or influencing
attitude), appropriateness of the facilities, trainees’ preference and
capabilities, trainer preference and capabilities, and learning
principles.
Training can be conducted either on-the-job, that is within the actual
work environment, and off-the-job, that is outside the actual work.
Among the training methods are:
a) Job/position rotation: which is rotating key personnel in different
positions,
departments, etc.
b) Coaching: The trainee is placed under a close guidance and
supervision of the trainer
(immediate supervisor) and he/she given an opportunity to perform
an increasing
range of management tasks, and share the coach’s experience.
c) Internship: refers to a joint program of training where school and
business cooperate
in order to train students by assigning them to jobs.
d) Role playing: this is a device that forces trainees to assume
different identities.
e) Case study: this method utilizes simulated or actual business
problems experienced
before for trainees to solve where the trainee will be expected to
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study the
information given and to make decisions.
f) Lectures, conferences, seminars and workshop: A lecture is a
semi-formal discourse in which the instructor presents a series of
events, concepts, principles and theories, and express problems or
explains relationships. Conferences bring together individual with
common interests to discuss and attempt to solve a problem.
A seminar is a group of persons gathered together for the purpose
of studying a
subject under the leadership of an expert. In a workshop a group of
persons with common interest or problem after performing
professional and vocational work meet
for an extended period of time to improve their individual
proficiency, ability, or
understanding.
g) Apprenticeship: involves learning from a more experienced
employee. It is
generally followed in technical fields in which proficiency is
acquired in direct
association with work and direct supervision.
Conducting Training
Training can be delivered either by people from the organization itself
or by those outside the organization. It should be based on appropriate
content; trainers and trainees, training methods, facilities and places;
and appropriate time schedule.
6.3 MAINTENANCE AND UTILIZATION
Procured and trained/developed employees should be maintained and
utilized utmost. This requires adequate and equitable remuneration of
personnel, the creation of opportunities for progress, and a mechanism
of evaluating their contribution. Compensation and performance
appraisal are at the heart of the maintenance and utilization function
of human resources management.
Compensation
Compensation is adequate and equitable remuneration of personnel
for their contributions to the achievement of organizational objectives.
From an employee’s point of view, pay is a necessity in life, it is the
means by which employees provide for their own and their families’
needs, it is a contributing factor to their efforts as what they are paid
indicates their worth, etc. For the employer, compensation constitutes
the lion’s share of costs (about 50%), is the major means of attracting
and retaining employees, it can provide an image to the organization,
etc.
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Pay can be determined relatively or absolutely. Pay for a particular
position is set relative to three groups: a) employees working on
similar jobs in other enterprises (external equity), b) employees
working on different jobs within the same enterprise (internal equity),
c) employees working on the same job within the same enterprise
(employee equity).
Factors Affecting Compensation Decisions.
1) External factors.
a) The government through wage controls and guidelines, wage and
hour regulations,
income protection legislations, etc.
b) Unions influence demanding for better pay and better working
conditions.
c) Economic conditions of the industry. Very productive and profitable
industries
compared to others pay higher wages.
d) The labor market.
2) Internal factors
a) The size and age of the organization. It is argued that large and
new organizations tend
to pay higher wages compared to small and old ones.
b) The labor budget (resource allocation strategy).
c) Managerial philosophy and strategy. As top-level management has
the final say on
pay level decisions, their views and strategies affect payment
decisions.
Methods of payment. Employees salaries can be computed based
on
a) The time they worked, e.g. salaries,
b) The output they produced (piece rate system) or,
c) A combination of both.
Fringe Benefits (Supplementary Compensation)
These are extra benefits given to an employee in addition to salary or
wages. Wages and salary payments represent only part of the total
package of compensation. Fringe benefits constitute a significant
portion of the employee pay (sometimes up to 40% of payroll
expenses). Broadly classified these are two types a) Time-off pay-
these are payments for the time not worked and include, paid
vacations, paid holidays, paid sick leave, and others. b) non-pay
benefits – these are not paid in cash but include expenditures on items
such as medical services, transportation, accommodation, insurance,
cafeteria services, education programs, child care facilities, and others.
Performance Appraisal
Performance appraisal can been defined as a human resource activity
that is used to determine the extent to which an employee is
performing the job effectively. Performance is said to be a result of
employee’s effort, abilities, and role perception.
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Objectives of performance appraisal include:
a) To provide information towards strengths and weaknesses of
employees in their job
performance;
b) To provide data for management for judging future job
assignments, promotions and
compensation;
c) To help better allocation of resources;
d) To provide information to help- maintain an equitable and
competitive pay structure;
e) To supply general information or training needs for the
organization or department;
f) To improve motivation by increased understanding of goals, the
means of attaining
those goals and the rewards associated with achievement;
g) To improve performance by developing strengths and dealing with
weaknesses; and
others.
Appraisal Methods: There are different methods of carrying out
performance appraisal which include: a) Forced distribution method, b)
The essay method. c) The critical incident method, and d) Graphic rating
scale
Who does the appraisal? Although in the vast majority of the cases the
immediate supervisors do the appraisal, an organization can use different
appraisers. This could be: a) The immediate supervisor of the employee.
b) Group appraisal. C) Peer appraisal. d) Self appraisal.
Some problems in performance appraisal: Rater’s general lack of
knowledge, experience and skill, rating an employee based on an overall
impression resulting from one or few incidents, bad or good and without
taking into consideration the whole performance during the evaluation
period, providing a rating of average or around the midpoint for all
qualities, rating influenced by the most recent behaviour, allowing past
performance appraisal ratings to unjustly influence current ratings, rater’s
ineffectiveness in observing and documenting performance, and
vagueness of the criteria and standards of performance are some of the
problems.
Employee relations
Employee relations are one important area of human resource
management. It is mainly concerned with the relationships existing
between employers and employees. The contents of employee-employer
relations are expressed in an employment contract which may include
elements such as amount and method of payment; hours of work;
holidays and holiday pay;
Provisions for sickness, injury, and entitlement to pay; terms and
conditions of pension rights; disciplinary rules and procedures;
institutional rights of unions and management; terms and conditions of
termination of the contract; enforcement and administration of the
agreements; and others.
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The three principal actors in employee relations are employees,
employers and the government. Generally, all these parties are
represented by other bodies such as the labour union, manager/employer
association, and specialized government unit.
The three basic elements of the subject of employee relations are
collective bargaining, grievance handling, and disciplinary procedures.
a) Collective Bargaining: This is a two-way negotiation process
between employees and
employees and employers to reach at an agreement on matters of
employment. The end
result of a successful collective bargaining process is collective
agreement that is a
binding document governing employee relations during a specified
period of time.
b) Grievance (complaint) handling: Employees should have
established and known methods of processing grievances – grievance
procedure. The grievance procedure consists of an orderly series of
steps followed to resolve disputes. Employees should know where they
stand in matters pertaining to the justice or injustice of their
treatment.
c) Disciplinary Action: Disciplinary action refers to the application of
penalties that lead to
an inhibition of undesired behavior. Among the penalties available are
oral reprimand,
written reprimand, loss of privileges, fines, layoff, demotion,
suspension, and dismissal.
6.4 SEPARATION
The final human resource management function is that of separation. Like
other functions this requires preparation and planning. Separations can be
initiated by employers like mandatory retirement, dismissal, and layoff;
by the employees like resignation, voluntary retirement quits; by
agreement say when the contract ends; or they can also be caused by
things outside the will of both the employer and the employee (accidents,
death). Retirement, layoff, dismissal, resignation, quit, outplacement,
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permanent disability, are among the causes for the separation of
employees from the organization.
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