SBES College of Arts & Commerce.

Unit IV: Staffing

Meaning:
Staffing is the process of finding, selecting, and developing employees to fill roles within an
organization. It's a key managerial function that involves a number of activities. Staffing is the process
of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best
workforce. Overall growth and success of every venture is based on appropriateness of staffing
function. It is very challenging for organization to focus on best utilization of workforce by using their
talents and skills, retaining them and arranging training and development programmes. The function
emphasizes managing human and not material or financial resources. The need of staffing arises since
the initial period of organization. Due to promotion, transfer, business expansion, retirement,
resignation, accidents, death of employee etc. vacancies are created in organization. In this context,
staffing function plays very important role in organization. Right person at right job with right pay is
the basic principle of staffing.
Definitions:
1) Theo Haimann: "The staffing function pertains to the recruitment, selection, development, training
and compensation of subordinate managers."
2) Luther Gullick: "Staffing is the whole personnel function of bringing in and training the staff and
maintaining favorable conditions of work".
3) S. Benjamin: "Staffing is the process involved in identifying, assessing. Placing, evaluating and
directing individuals at work."
Nature of Staffing:
1) Staffing is an important managerial function- Staffing function is the most important
managerial 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 personnel’s- 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.
7) People Centered: Staffing is people centered and is relevant in all types of organizations. It is
concerned with all categories of personnel from top to bottom of the organization.
(i) Blue collar workers (i.e., those working on the machines and engaged in loading,
unloading etc.) and white collar workers (i.e., clerical employees).
(ii) Managerial and non-managerial personnel.
(iii) Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.).
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Importance of Staffing:
1) Effective Managerial Function: Staffing is the key to effective performance of other
functions of management such as planning, organizing, directing and controlling. Competent
workforce can work effectively in different functional areas like production, sales, finance etc.
The outcome of other functions is based on the effectiveness of staffing.
2) Leads to Effective Utilization of Human Resources: Staffing function leads to effective
utilization of human resources i.e. workforce. Proper care is taken at every stage such as
recruitment, selection, placement, remuneration, training, development etc. Excessive burden
of work is avoided. Optimum utilization of human resources results in improvement in
performances and progress of organization.
3) Builds Cordial Relationship: This function is helpful in building healthy relationships among
all levels of employees in the organization. A smooth human relation is the key to better
communication and coordination of managerial efforts in an organization.
4) Helps Human Resource Development: Skilled and experienced employee is an asset of a
business organization. Staffing helps to inculcate the organizational culture into employees. It
trains and develops the existing workforce. It also ensures smooth functioning of all the
managerial aspects of the business organization.
5) Helps in Effective use of Technology and Other Resources: Trained employees can use
the latest technology, capital, material and methods of work effectively. It helps in building
competitive strength of the organization. It is also helpful in improving standard of work and
productivity in terms of quality and quantity.
6) Improves Efficiency: Training and development programmes are offered to the employees
for self-development and organizational development. Through proper selection, the
organization gets quality employees and through proper training the performance level of the
employees can be improved.
7) Long Term Effect: Qualified, efficient and skillful workforce is always an asset of the
organization. Proper selection of employees leads the organization towards the path of success.
Naturally, long term positive effects can be observed on the efficiency of an organization.
8) Essential Contribution: Staffing ensures the continuity and growth of the organization
through development of employees. Selection is based on the ability of the prospective
employees. So that organization can meet the future challenges wisely. Therefore, the
contribution of the staff in their future roles is taken into account in staffing function.
9) Provides Job Satisfaction: Employees can be motivated through financial and non-financial
incentives. Adequate remuneration increases job satisfaction and morale of the employees.
Training and development programmes, fair remuneration and job security are the factors
which are important in providing job satisfaction.
10) Maintains Harmony: In staffing process, individuals are recruited, selected and placed as well
as their performance is regularly appraised and promotions are given on the basis of merit. For
this, criteria is made and duly communicated to concerned employees. It brings peace and
harmony in organization.
Process of Staffing:
The objective of staffing is to obtain the most competent & efficient staff for the enterprise.
For the purpose, the staffing function has to go through certain processes mentioned below:
1) Manpower planning: According to Thomas H. Pattern, manpower planning is “The process
by which an organisation ensures that it has the right number of the people & the right kind of
people at the right places & at the right time doing things for which they are economically most

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useful”. This process requires determination of the number & the type of people required for
each category of the job during a started period. In the case of existing organisation the
manpower planning is done for filling vacant jobs & also for creating new jobs in case of
expansion programme.
2) Job analysis: Job analysis includes 1] the nature of job. 2] Condition under which it is to be
performed. 3] Relation of one job with another job. 4] Qualification of the individuals who
have to perform the job. The main focus of job analysis is on placing right type of person at the
right job.
3) Recruitment: Recruitment can be defined as including or attracting more & more candidates
to apply for the job in the organisation. The outcome of the requirement function is to get a
large number of applications from different candidates to help the organisation to make a
better choice. Recruitment can be made from inside the organisation as well as from the
external sources depending upon the type of vacancy.
4) Selection: Selection means choosing the most apportionate & the best suitable candidate to
perform the job. The selection process has various elements such as 1] preliminary interviews
2] written test 3] final interview 4] medical examination etc.
5) Placement & Orientation: IN the placement process, the selected employees are assigned
suitable roles & designation in the organisation which they have to perform efficiently.
Orientation means introduction of a new employee with the existing employees of the
organisation so as to make him familiar with the environment of the organisation. In large
organisation, special orientation programmers are arranged for this purpose.
6) Training: Training means equipping the new employee with the necessary knowledge & skill
required to perform the job assigned to him. Training is very necessary for getting the work
done in the expected manner to have uniformity & to improve the efficiency level of the
employee.
7) Performance Appraisal: When the employees perform the jobs according to the training
received, they are supervised & observed by their superiors to determine whether their
performance is according to the demands of their jobs. The supervisors prepare the
performance appraisal reports periodically. On the basis of this report decisions are taken about
further training, if necessary & their compensation.
8) Promotion, transfer etc.: If the employees work efficiently & their appraisal reports are
excellent then they are rewarded by assignment by assignment of higher jobs which is called
promotion. If the appraisal report shows that an employee finds it difficult to adjust & perform
efficiently in a particular department then he is transferred to other department. If an employee
fails to improve his performance & thereby causes wastage of resources he may be penalized by
giving him demotion.
9) Compensation: Compensation includes salary & other benefits. The staffing department fixes
the compensation keeping in mind the government regulations, financial capacity of the
company, the compensation offered for a similar post by the competitors etc.
10) Separation: This function includes separation of the employee from the organisation due to
his retirement, resignation or death.
Manpower Planning:
Manpower planning is the process of determining the right number of people for a job or
project, and how to use them. It involves analyzing current human resources and forecasting future
manpower needs. The goal is to ensure that the right people are in the right roles at the right time.
Manpower planning can help businesses:

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1) Manage workforce: Maintain the right number of employees to avoid lost productivity or
increased workload
2) Reduce labor costs: Avoid hiring too many staff or overstaffing shifts
3) Identify talent: Find skilled laborers within the workforce and develop them
4) Support growth: Ensure sustainable growth and expansion by using available human
resources
5) Address staffing fluctuations: Plan for staffing needs during busy periods, like holiday
seasons, to ensure smooth operations
6) Manpower planning typically involves: Workforce baseline assessment, Supply analysis,
Demand analysis, Workforce gaps and risk analysis, and Strategic workforce plan and approach
Recruitment & Selection:
Recruitment and selection are two fundamental processes within human resource management
that involve attracting, assessing, and choosing the most suitable individuals to fill job positions within
an organization. These processes are integral to building a capable and effective workforce, as they
ensure that the right people with the necessary skills, qualifications, and attributes are brought on board
to contribute to the organization's goals.
It is a two-step process:
1) Recruitment is the process of attracting qualified candidates to apply for the job. This can be
done through a variety of methods, such as job postings, online advertising, employee referrals,
and networking.
2) Selection is the process of evaluating the candidates and choosing the best one for the job. This
can involve screening resumes, conducting interviews, and administering tests and assessments.
Recruitment Process:
1. Workforce Planning: Before initiating the recruitment process, it is essential to conduct thorough
workforce planning. This involves analyzing the organization's current and future talent needs,
understanding job requirements, and determining the desired skills and qualifications for the vacant
position.
2. Job Analysis and Job Description: A crucial step in the recruitment process is conducting a
comprehensive job analysis. This entails identifying the key responsibilities, tasks, and qualifications
necessary for the role. Based on this analysis, a well-crafted job description is created, outlining the job
title, duties, required skills, experience, and other relevant details.
3. Sourcing Candidates: In this stage, recruiters utilize various sourcing strategies to attract potential
candidates. This can include advertising the job opening on job boards, utilizing social media
platforms, attending job fairs, networking, and leveraging professional connections. The goal is to
reach a diverse pool of qualified candidates.
4. Resume Screening: Once applications start pouring in, the resume screening process begins.
Recruiters review resumes and shortlist candidates who meet the minimum requirements outlined in
the job description. This initial screening helps narrow down the candidate pool for further evaluation.
5. Pre-Employment Assessments: To gain a deeper understanding of candidates' skills, aptitude, and
cultural fit, pre-employment assessments may be administered. These assessments can include
cognitive tests, personality assessments, technical skills evaluations, and situational judgment tests. The
results help evaluate candidates objectively and identify those who align best with the organization's
needs.

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6. Interviews: Interviews play a crucial role in the recruitment process. They provide an opportunity to
assess candidates' qualifications, experience, cultural fit, and ability to handle specific job-related
scenarios. Interviews can be conducted in various formats, such as phone interviews, one-on-one
interviews, panel interviews, or behavioral interviews.
7. Background Checks and References: After identifying potential candidates, conducting thorough
background checks and reference checks is essential. Background checks may include verifying
employment history, education credentials, criminal records, and professional licenses. Contacting
references allows employers to gather insights about candidates' work ethic, skills, and reliability.
8. Decision Making and Offer: Based on the outcomes of the previous stages, recruiters and hiring
managers evaluate the candidates and make a final decision. Factors such as qualifications, experience,
cultural fit, and interview performance are considered. Once the ideal candidate is identified, a job offer
is extended, including details regarding compensation, benefits, start date, and any other relevant terms.
9. Onboarding: The recruitment process does not end with the acceptance of the job offer.
Onboarding is a critical step to ensure new hires are integrated smoothly into the organization. It
involves introducing the new employee to the company culture, providing necessary training and
resources, and helping them understand their role and responsibilities.
Selection Process:
1) Identifying Job Requirements: The journey begins by clearly defining the job's requirements
and responsibilities. This step sets the foundation for the entire selection process. A well-
crafted job description will attract candidates who possess the skills and qualities needed to
excel in the role.
2) Sourcing Candidates: With the job requirements in hand, it's time to reach out to potential
candidates. This step involves using a variety of methods such as online job boards, social
media, networking, and even employee referrals. The goal is to cast a wide net to ensure a
diverse pool of applicants.
3) Initial Screening: Once the applications start rolling in, it's time to sift through them and
identify the most promising candidates. Initial screening may involve reviewing resumes, cover
letters, and application forms to ensure they meet the minimum qualifications.
4) Conducting Interviews: The heart of the selection process lies in the interviews. Depending
on the role, interviews can take various forms such as one-on-one interviews, panel interviews,
or behavioral interviews. This step allows employers to assess a candidate's skills, cultural fit,
and compatibility with the team.
5) Skill Assessment: For roles requiring specific technical or practical skills, skill assessment tests
come into play. These tests could range from coding challenges to practical exercises, offering a
tangible way to evaluate a candidate's capabilities.
6) Background Checks: Before extending an offer, it's crucial to verify the information provided
by the candidate. Background checks help confirm a candidate's educational qualifications,
work history, and any potential criminal records. This step ensures that the organization is
making informed decisions.
7) Making the Offer: Once the selected candidate passes all the assessments and checks, it's time
to extend a formal job offer. This offer should include details about compensation, benefits,
job responsibilities, and any other pertinent information.
8) Onboarding: The final step in the selection process bridges the gap between selection and
integration. Onboarding introduces the new employee to the organization's culture, values, and
workflows. It sets the tone for a successful start to their journey with the company.

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Orientation & Placements:

Placement is said to be the process of fitting the selected person at the right job or place,
i.e. fitting square pegs in square holes and round pegs in round holes. Once he/she is fitted into
the job, he is given the activities he has to perform and also told about the duties. The freshly
appointed candidates are then given orientation in order to familiarize and introduce the company to
him. Generally the information given during the orientation programmed includes-
 Employee’s layout
 Type of organizational structure
 Departmental goals
 Organizational layout
 General rules and regulations
 Standing Orders
 Grievance system or procedure
In short, during Orientation employees are made aware about the mission and vision of the
organization, the nature of operation of the organization, policies and programmes of the organization.
The main aim of conducting Orientation is to build up confidence, morale and trust of the
employee in the new organization, so that he/she becomes a productive and an efficient employee of
the organization and contributes to the organizational success.
The nature of Orientation program varies with the organizational size, i.e., smaller the organization
the more informal is the Orientation and larger the organization more formalized is the Orientation
programme.
Training
Training is an important step in the staffing process, as it helps employees improve their skills
and knowledge to perform their jobs. Training can be provided to both new and existing employees.
It is an integral part of the staffing process, and it helps the employees to develop their skills
and knowledge. Remuneration to Employees: It is the compensation given to the employees in
monetary terms in exchange for the work they do for the organization. It is given according to work
done by the employees.
Training can help employees:
1) Improve performance: Training helps employees learn new skills and habits, which can
improve their performance and productivity.
2) Adapt to change: Training can help employees adapt to new technologies and market changes.
3) Feel valued: Training can show employees that the organization values their growth and
contributions.
4) Stay with the organization: Employees who feel invested in are more likely to stay with the
organization.
5) Identify potential leaders: Training can help identify potential leaders within the
organization.
6) The management decides the training methods and duration based on the training objectives,
the number of employees to be trained, and the amount of training needed
Remuneration:
Remuneration is a key part of the staffing process, as it can help attract and retain top
talent. Remuneration is the total compensation an employee receives for their work, including salary,
bonuses, commissions, and other benefits. An effective remuneration strategy can help a business build
a successful and profitable team.
Here are some ways remuneration can help with staffing:

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1) Attract top talent: A well-articulated remuneration strategy can help a business attract high-
caliber employees. For example, a business can offer above-market rates to attract top talent
in professional services.
2) Retain talent: A business can retain top talent by offering a competitive remuneration
package.
3) Improve brand awareness: A business can increase its brand awareness by offering
competitive remuneration. Clients may follow talented employees to their new employer.
Remuneration can include:
• Base salary or wages
• Bonuses
• Commissions
• Overtime, holiday, vacation, and sick pay
• Health insurance
• Retirement savings plans
• Stock options
• Employee discounts
• Payments for work-related travel expenses
Perks like an on-site gym or vacation time are not considered compensation because they are not
monetary benefits. However, benefits like a company car may count as remuneration and may be
taxable income.
Performance Appraisal:
A performance appraisal is a structured and regular review of an employee's job performance,
assessing how well their work aligns with the set job criteria. This process identifies strengths, areas for
improvement, and the employee's overall value to the organization, while also planning for future
growth and development.
Performance appraisals are also called performance evaluations, performance reviews,
development discussions, or employee appraisals.
If you conduct a successful performance appraisal, you can get a handle on what the employee
does best and identify areas that require improvement. Appraisals also come in handy for deciding how
to fill new positions in the company structure with existing employees.
Types of Performance Appraisals
1. 360-Degree Appraisal: The manager gathers information on the employee’s performance, typically
by questionnaire, from supervisors, co-workers, group members, and self-assessment.
2. Negotiated Appraisal: This type of appraisal uses a mediator to help evaluate the employee’s
performance, with a greater emphasis on the better parts of the employee’s performance.
3. Peer Assessment: The team members, workgroup, and co-workers are responsible for rating the
employee’s performance.
4. Self-Assessment: The employees rate themselves in categories such as work behavior, attitude, and
job performance.
Note that some organizations use several appraisal types during the same review. For instance,
a manager could consult with the employee’s peers and assign a self-assessment to the employee. It
doesn’t have to be a case of either/or.
Methods of Performance Appraisals
1. 720-Degree Feedback: You could say that this method doubles what you would get from the 360-
degree feedback! The 720-degree feedback method collects information not only from within the

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organization but also from the outside, from customers, investors, suppliers, and other financial-related
groups.
2. The Assessment Center Method: This method consists of exercises conducted at the company's
designated assessment center, including computer simulations, discussions, role-playing, and other
methods. Employees are evaluated based on communication skills, confidence, emotional intelligence,
mental alertness, and administrative abilities. The rater observes the proceedings and then evaluates the
employee's performance at the end.
3. Behaviorally Anchored Rating Scale (BARS): This appraisal measures the employee’s
performance by comparing it with specific established behavior examples. Each example has a rating to
help collect the data.
4. Checklist Method: This simple method consists of a checklist with a series of questions that have
yes/no answers for different traits.
5. Critical Incidents Method: Critical incidents could be good or bad. In either case, the supervisor
takes the employee’s critical behavior into account.
6. Customer/Client Reviews: This method fits best for employees who offer goods and services to
customers. The manager asks clients and customers for feedback, especially how they perceive the
employee and, by extension, the business.
7. Field Review Method: An HR department or corporate office representative conducts the
employee's performance evaluation.
8. Forced Choice Method: This method is usually a series of prepared True/False questions.
9. General Performance Appraisal: This method involves continuous interaction between the
manager and the employee, including setting goals and seeing how they are met.
10. Human Resource Accounting Method: Alternately called the “accounting method” or “cost
accounting method,” this method looks at the monetary value the employee brings to the company. It
also includes the company’s cost to retain the employee.
11. Management by Objective (MBO): This process involves the employee and manager working as
a team to identify goals for the former to work on. Once the goals are established, both parties discuss
the progress the employee is making to meet those goals. This process concludes with the manager
evaluating whether the employee achieved the goal.
12. Performance Tests and Observations: This method consists of an oral test that
measures employees' skills and knowledge in their respective fields. Sometimes, the tester poses a
challenge to the employee and has them demonstrate their skills in solving the problem.
13. Project Evaluation Review: This method involves appraising team members at the end of every
project, not the end of the business year.
14. Rating Scales: These ratings measure dependability, initiative, attitude, etc., ranging from Excellent
to Poor or some similar scale. These results are used to calculate the employee's overall performance.
Promotion & transfer:
Developing effective incentives for employee initiative and ambition is of major concern
to the University. One of the most successful ways for departments to obtain skilled and
experienced employees is to encourage advancement opportunities through transfers and
promotions. When they meet all qualifications prescribed for the new position, Murray State
University employees are encouraged to apply for job vacancies which would result in a
promotion or transfer.
Transfer or promotion within a department or from one department to another may be
made. Careful consideration should be given to the benefits which can be derived for both the
employee and the University.

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Definitions
a. Promotion is defined as the movement of an employee from one position to
another position of a higher pay grade or salary.
b. Transfer is defined as the movement of an employee from one position to
another position at the same pay grade level or similar salary.
Promotion and Transfer Procedures:
a. Within a Department
1. Promotions and transfers within a department may be effected if the employee
meets all of the designated requirements for the vacant position. Approval to fill
the vacancy must be obtained by the department before transfers or promotions
can be initiated. The transfer or promotion may be effected without advertising
the vacant position.
2. Requests to transfer employees within a department should be made to the
department chair or administrative director by the supervisor. The department
chair or administrative director shall initiate such transfers by completing and
forwarding the Notice of Personnel Action Form through the proper channels.
b. Between Departments
Requests for transfer or promotion may be initiated by department chairs or
administrative directors but must be coordinated through Human Resources when two
departments are involved.
c. When Initiated by the Employee
1. An employee may seek a promotion or transfer by applying through Human
Resources for any posted position vacancy which meets his/her qualifications.
2. The employee may contact Human Resources to discuss promotion and transfer
possibilities at any time.
3. Notification to Supervisor
1. In the overall interest of a satisfactory employment relationship, it is recommended that
an employee initially discuss his/her interest in transfer with the current supervisor.
Such discussions allow the employee the opportunity to communicate his/her career
goals and/or provide the supervisor reasonable time to assess the possible transfer in
light of the needs of the department and the needs of the employee.
2. In any event, it shall be the responsibility of the employee to arrange with the present
supervisor for the time needed, if any, for interviews during work hours. Such
reasonable time off the job shall not be charged to the employee's leave balances.