ST.

JOHN PAUL II INSTITUTE OF TECHNOLOGY

TRAINING ASSESSMENT AND LEARNING CENTER, INC
FRA Building, Carmen West, Rosales, Pangasinan/
Aguila Road, Brgy. Sevilla, San Fernando City, La Union

Organization and Management

Quarter IV– Module 10:
Concept and Nature of Staffing
(Week 10)

Organization and Management: Concept and Nature of Staffing Page 1|9

 Subject: Organization and Management
Grade & Section: Grade 11
Module No. 10
Week No. 10
Instructor: Ms. May-Ann C. Nicolas

Objectives:

At the end of the lesson, students should be able to:

1. identify the nature of staffing;
2. determine the concept of staffing function in business organizations; and
3. appreciate the importance of staffing in the business organization.

Lesson
Concept and Nature of
1 Staffing

Managers often consider human resources as their organization’s most important

resources. Very few administrators would argue with the fact that human resources are
very important for the efficient and effective operation of a company. To emphasize their
importance, human resources are also called human capital, intellectual assets, or
management or company talents. These terms imply that human resources are the drivers
off the organization’s performance; hence, staffing is a crucial function of managers.
Concept and Nature of Staffing
Staffing – Introduction
In a new enterprise, the staffing function follows the planning and organizing function.
In the case of running an enterprise, staffing is a continuous process. So, the manager
should perform this function at all times.
It is obvious that the management must ensure a constant availability of sufficient
number of efficient executives in an enterprise for the efficient functioning of the
enterprise. The selected personnel should be physically, mentally and temperamentally
fit for the job.
Staffing is a basic function of management. Every manager is continuously engaged in
performing the staffing function. He is actively associated with recruitment, selection,
training and appraisal of his subordinates. These activities are performed by the chief
executive, departmental managers and foremen in relation to their subordinates. Thus,
staffing is a pervasive function of management and is performed by the managers at all
levels.

Meaning of Staffing:
The term ‘Staffing’ relates to the recruitment, selection, development, training and
compensation of the managerial personnel. Staffing, like all other managerial functions,
is the duty which the apex management performs at all times. In a newly created
enterprise, the staffing would come as a. third step— next to planning and organizing—
but in a going enterprise the staffing process is continuous.

Organization and Management: Concept and Nature of Staffing Page 2|9

In order to define and clarify the group of employees included in the staffing concept, it
must be stated that the staffing function is concerned with the placement, growth and
development of all of those members of the organization whose function it is to get things
done through one effort of other individuals.
This definition includes all levels of management because those who will occupy positions
in the top two or three levels of management fifteen or twenty years from now are likely
to be found in the lower levels today.
“The managerial function of staffing involves manning the organizational structure
through effective and proper selection, appraisal, and development of personnel to fill the
roles designed into the structure.” — Koontz and O’Donnell
Staffing is related to performing a set of activities which aim at inviting, selecting, placing
and retaining individuals at various jobs to achieve the organizational goals. It involves
determining the need for people at various organizational posts, appointing and retaining
them at those posts by training and developing their abilities and skills. This is done by
performing a number of functions like manpower planning, recruitment, selection,
training and development, performance appraisal, compensation and maintenance.
Staffing, according to Dyck and Neubert (2012), is the Human Resource function of
identifying, attracting, hiring, and retaining people with the necessary qualifications to
fill the responsibilities of current and future jobs in the organization. The number of
managerial personnel or non-managerial human resources needed by an organization
depends upon the size and complexity of its operations, its plans for branching out or
increasing products, and turnover rates of both types of human resources, among others.
Besides considering their number, the qualifications for the individual positions must be
identified, so that the best-suited individuals for the job positions may be selected for
hiring.

Staffing – Concept
Once the organizational goals are set, the plans are prepared and organization is
appropriately structured to pave the path for achievement of the set goals. The next step
is to provide appropriate personnel to fill in the various positions created by the
organizational structure. The process putting people to jobs is termed as staffing.
Staffing, the management function involves appointing appropriate personnel,
developing them to meet organizational needs and ensuring that they are a satisfied and
happy workforce. Staffing is defined as a managerial function of filling and keeping filled
the positions in the organizational structure. The personnel appointed are a combination
of permanent employees, daily workers, consultants, contract employees etc.

Staffing includes:
1. Identifying the requirement of workforce and its planning.
2. Recruitment and selection of appropriate personnel for new jobs or for positions which
may arise as a result of existing employees leaving the organization.
3. Planning adequate training for development and growth of workforce.
4. Deciding on compensation, promotion and performance appraisals for the workforce.

Organization and Management: Concept and Nature of Staffing Page 3|9

The following are the basic nature of staffing:
I. People-oriented – Staffing deals with efficient utilization of human resources in an
organization. It promotes and stimulates every employee to make his full contribution for
achieving desired objective of the organization.
II. Development-oriented – It is concerned with developing potentialities of
personnel in the organization. It develops their personality, interests, and skills. It enables
employees to get maximum satisfaction from their work. It assists employees to realize
their full potential. It provides opportunities to employees for their advancement through
training, job education, etc.
III. Pervasive function – Staffing is required in every organization. It is a major sub-
system in the total management system that can be applied to both profit making and
non-profit making organizations. It is required at all levels of organization for all types of
employees.
IV. Continuous function – Staffing is a continuous and never-ending process. It
requires constant alertness and awareness of human relations and their importance in
every operation.
V. Human objectives – It develops potentialities of employees so that they can derive
maximum satisfaction from their work. It creates an atmosphere where employees
willingly cooperate for the attainment of desired organizational goals.
VI. Individuals as well as group-oriented – Staffing is concerned with
employees both as individuals and as group in attaining goals. It
establishes proper organizational structure to satisfy individual needs
and group efforts. It integrates individual and group goals in such a
manner that the employees feel a sense of involvement towards the
organization.

VII. Developing cordial working environment – It develops a cordial

environment in the enterprise where each employee contributes his best
for the achievement of organizational goals. It provides a very
comfortable physical and psychological working environment.
VIII. Interdisciplinary nature – Staffing has its roots in social sciences. It uses
concepts drawn from various disciplines such as psychology, sociology, anthropology, and
management. It has also borrowed principles from behavioral sciences. It is a science of
human engineering.

IX. Integral part of general management – Staffing is an integral part of the general
management. It is very much a part of every line manager’s responsibility. Every member
of the management group (from top to bottom) must be an effective personnel
administrator. It renders service to other functional areas of management.

X. Science as well as art – Staffing is a science of human engineering. It is an organized

body of knowledge consisting of principles and techniques. It is also an art as it involves
skills to deal with people. It is one of the creative arts as it handles employees and solves
their problems systematically. It is a philosophy of management as it believes in the
dignity and worth of human beings.
https://www.economicsdiscussion.net/organisation/staffing/31866

Organization and Management: Concept and Nature of Staffing Page 4|9

Characteristics of Staffing as a Function of Management

The following facts clearly bring out the characteristics of staffing as a function of
management:

1. Related to Human Beings

The first important characteristic of staffing is its relationship with human beings. It
means that unlike planning and organizing it is not mere paper work but involves the
appointment of competent persons on various posts. Planning lays down what, when, how
and by whom work is to be done. Similarly, an organizational structure chart is prepared
under organizing.

On the contrary, under staffing, competent individuals are selected and given training
keeping in view the importance of the post and not only doing paper work alone. All the
activities done to accomplish this work are connected with human beings-they may be
recruitment, selection, training, promotion, etc.

2. Separate Managerial Function

The second important characteristic of staffing is that it is a separate managerial function.

Separate managerial function means that far from being a major part of some function, it
is in itself a major function. Staffing is included in the other categories of managerial
functions like planning, organizing, leading, and controlling. A little earlier, some
management experts considered it a part of organizing. But these days, on the basis of
various researches, it is accepted as an important separate managerial function.

3. Essential at All Managerial Levels

Staffing is essential at all managerial levels. The Board of Directors performs the function
of staffing by appointing General Manager. The General Manager does so by appointing
departmental managers, while the departmental managers perform this function by
appointing their subordinates. It must be clarified here that the establishment of a
separate personnel department does not free the concerned managers from this all-
important function.

The aim of establishing this department is to assist the managers at every level in the
performance of their function of staffing. It is important to note that the final
responsibility regarding staffing lies with the managers concerned.
4. Related to Social Responsibility
Staffing deals with human beings and man is a social animal. Since it is connected with
human beings, the social responsibility of this function is born. In order to discharge this
responsibility, the managers should take care and be impartial while going through the
allied functions of recruitment, selection, promotion, etc.
5. Effect of Internal and External Environment

The performance of staffing is affected by the internal and external environment of the
enterprise. The internal environment of the enterprise includes policies connected with
the employees — like the promotion policy, demotion policy, transfer policy, etc. If as a
matter of policy the vacant posts are to be filled up by promotion, the employees already
working in the enterprise will have the opportunity to reach higher posts, and the people
from outside will be appointed only on lower posts.

Organization and Management: Concept and Nature of Staffing Page 5|9

In this way the internal policy of the organization does affect the function of staffing. The
external environment affecting the enterprise includes government policies and
educational environment. It can be the policy of the government that in a particular
enterprise employee should be recruited only through employment exchange.
Educational institutions can help in the development of the employees by organizing
special training camps. In this way, external environment also affects the function of
staffing.

7 Important Functions of Staffing

1. Manpower Planning
Manpower may be planned for short-term and long-term. The short-term
manpower planning may achieve the objectives of the company at present
conditions. The long-term manpower planning should be concerned with the
estimation of staff members required in future.

2. Development
Development is concerned with the development of staff members through adequate and
appropriate training programs. The training is given only to the needy persons.

3. Fixing the Employment Standards

It involves the job specification and job description. These enable the management to
select the personnel and train them scientifically. Job description is a systematic and
organized written statement of the duties and responsibilities in a specific job. Job
specification is a statement of personal qualities that an individual must possess if he is
to successfully perform the job.

4. Sources
It is concerned with the method by which the staff members are selected. The sources may
be internal and external sources. Internal source means that a vacancy is filled up by the
company out of the staff members available within the company. The external source
means that a vacancy is filled up by the company from outside the company. The person
selected may be unemployed or working in any other company.

5. Selection and Placement

It includes the process of selection of the staff members. The placement includes giving a
job to a person on the basis of his ability, education, experience and the like.

6. Training
The training may be arranged by the company itself. In certain cases, the staff members
may be sent out by the company to get the training. The expense is borne by the company.
The training may be required not only by the new staff members but also by the existing
staff members.

7 Step Process of Staffing

Staffing starts with the estimation of manpower requirements and proceeds towards
searching for talented personnel to fill the various positions in an organization. Staffing,
therefore, should follow a logical step by step process.

Following are the important steps involved in the process of staffing:

Step # 1. Estimating Manpower Requirements/Manpower Planning:

The process of manpower planning can be divided into two parts. One is an analysis for
determining the quantitative needs of the organization, i.e., how many people will be
needed in the future. The other part is the qualitative analysis to determine what qualities
Organization and Management: Concept and Nature of Staffing Page 6|9
and characteristics are required for performing a job.

The former is called the quantitative aspect of manpower planning in which we try to
ensure a fair number or personnel in each department and at each level. It should neither
be too high nor too low leading to overstaffing or under-staffing respectively. The second
aspect is known as qualitative aspect of manpower planning wherein we try to get a proper
fit between the job requirement and the requirement on the part of personnel in terms of
qualification, experience and personality orientation.

Step # 2. Recruitment and Selection:

The second step after manpower planning is recruitment and selection. These are two
separate functions, which usually go together. Recruitment aims at stimulating and
attracting job applicants for positions in the organization. Selection consists of making
choice among applicants. To choose those which are most suited to the job requirement
keeping in view the job analysis information.

Selection processes must begin by precisely identifying the task to be performed and also
drawing a line between successful and unsuccessful performance. Thereafter, the process
of selection tries to find out how far a job applicant fulfils those characteristics or traits
needed to successfully perform the job.

Step # 3. Placement and Orientation:

Placement refers to place the right person on the right job. Once the job offer has been
accepted by the selected candidate, he is placed on his new job. Proper placement of an
employee reduces absenteeism, employee’s turnover and accident rates.
Orientation/Induction is concerned with the process of introduction or orienting a new
employee to the organization.

The new employee is introduced to fellow employees, given a tour of the department and
informed about such details as hours of work, overtime, lunch period, rest rooms, etc.
They are mostly informed about the company, the job and work environment. They are
encouraged to approach their supervisors with questions and problems.

Step # 4. Training and Development:

It is more accurately considered as a process of skill formation and behavioral change. It
is a continuous process of the staffing function. Training is more effectively conducted
when the actual content of jobs for which people are being trained and developed is
known.

Training programs should be devised to impart knowledge, develop skills and stimulate
motives needed to perform the job. Development involves growth of an employee in all
respects. It is a wider concept. It seeks to develop competence and skills for future
performance. Thus, it has a long-term perspective.

Step # 5. Performance Appraisal:

It means evaluating a performance employee’s current and past performance as against
certain predetermined standards. This process includes defining the job, appraising
performance and providing feedback.

Step # 6. Promotion and Career Planning:

Managers must encourage employees to grow and realize their full potential. Promotions
are an integral p art of people’s career. They usually mean more pay, responsibility and
job satisfaction.

Organization and Management: Concept and Nature of Staffing Page 7|9

Step # 7. Compensation:
It refers to all forms of pay or rewards paid to employees by the employer/firm. It may be
in the form of direct financial payments (Time based or Performance based) like salaries
and indirect payments like paid leaves.
https://www.economicsdiscussion.net/organisation/staffing/31866

Activity 1

Direction: Write the letter of the correct .

A. Nature of Staffing
B. Characteristics of Staffing
C. Important Functions of Staffing
D. Steps involved in the process of staffing

1. Selection and Placement

2. Related to Human Beings
3. Promotion and Career Planning
4. Interdisciplinary nature
5. Fixing the Employment Standards
6. Effect of Internal and External Environment
7. Development-oriented
8. Development
9. Continuous function
10. Compensation

Organization and Management: Concept and Nature of Staffing Page 8|9

References
Cabrera,H., et al, 2017, Organization and Management, Vival Group, Inc., Quezon City,
Philippines

Nature, Need and Importance of Staffing Retrieved from

www.businessmanagementideas.com

Staffing: Its meaning, nature and importance Retrieved from

www.yourarticlelibrary.com

What is Staffing? Retrieved from www.economicsdiscussion.nets

Organization and Management: Concept and Nature of Staffing Page 9|9