MODULE 5 STAFFING

Learning Outcomes:

 Discuss the nature of staffing

 Explain the steps in the recruitment and selection process

 Recognize the different training programs

 Identify the policy guidelines on compensation/wages and performance

evaluation/appraisal

 Adopt effective rewards system

Module Topics:

 Definition and Nature of Staffing

 Recruitment

 Selection

 Training and Development

 Compensation/Wages

 Performance Evaluation/Appraisal

 Rewards System

Discussion

Reading 1: Definition and Nature of Staffing

Staffing refers to filling in all organizational job positions and keeping these filled.

The Management and Nonmanagerial Human Resources Inventory

Awareness of the management potential within an organization can be accomplished with

the use of an inventory chart, also called management succession/placement chart which is
limited to managerial positions and the names of potential successors (promotable, satisfactory
but not promotable, dismissed, etc.)

The need for nonmanagerial human resources may be ascertained by the use of a general
organization chart to identify vacant job positions that need to be filled or by direct reports
from departments/unit heads or supervisors. Managers need not make detailed succession
planning, as these job positions are less sensible.

External and Internal Forces Affecting Present and Future Needs for Human Resources
 Present and future needs for managers and other human resources are affected by both
external and internal forces. External forces include economic, technological, social political, and
legal factors.

The firm’s goal and objectives, technology, the type of work that have to be done, salary scales,
and the kinds of people employed by the company, are among the internal factors or forces that
affect staffing. For example, salary scales offered by a company may not be high enough to
attract personnel who are really qualified for the job, also, this may encourage fast managerial
and labor turnover.

Reading 2: Recruitment

Recruitment is comprised of activities designed to attract qualified applicants for job

position vacancies in an organization.

Recruitment may either be external or internal.

External recruitment – outside sources are considered in the process of locating potential
individuals who might want to join the organization and encouraging them to apply for actual or
anticipated job vacancies.

Internal recruitment – filling job vacancies can be done through promotions or transfer of
employees who are already part of the organization.

Methods of Internal and External Recruitment

 Advertisements – through websites, newspapers, trade journals, radio, television,

billboards, posters, emails

 Unsolicited applications – received by employers from individuals who may or may not be
qualified for the job openings

 Internet recruiting – thousands of independent job boards on the web commonly used by
job seekers and recruiters to gather and disseminate job opening information

 Employee referrals – recommendations from the organization’s present employees who

usually refer friends and relatives who they think are qualified for the job

 Executive search firms – “head hunters”, seek out candidates with qualifications that
much the requirements of the job openings that their client company hopes to fill

- a type of professional service firm that specializes in recruiting executives and other
senior personnel for their client companies in various industries.

 Educational institutions – good sources of young applicants or new graduates who have
formal training but with very little work experience, for technical and managerial
positions, schools may refer some of their alumni who may have the necessary
qualifications needed for the said job positions.
  Professional associations – may offer placement services to their members who seek
employment

 Public and private employment agencies – public employment agencies usually offer free
services, while private ones charge fees from both the job applicant and the employers
soliciting referrals from them.

External Recruitment

Advantages

 Advertising and recruiting through the internet reach a large number of possible
applicants and, therefore, increase the possibility of being able to recruit
applicants suited for the job.

 Applicants who submit applications and resumes their own initiative are believed
to be better potential employees because they are serious about getting the job.

 Employee referrals from outside source are believed to high quality applicants
because employees are generally hesitant to recommend persons who are not
qualified for job openings.

 Executive search firms usually refer highly qualified from outside sources
because they make an effort to check applicants’ qualifications before
recommending them to client firms who pay for their services.

 Educational institutions know the capabilities and qualifications of their graduates,

hence increasing the chances of their ability to refer qualified applicants to
potential employers.

Disadvantages

 The cost and time required by external recruitment are the typical disadvantages
of using this recruitment method.

 Possibility of practicing bias or entertaining self – serving motives in the referral

of friends and by current employees and in the recommendation of private
employment agencies of job applicants.

Internal recruitment

Advantages

 Less expenses are required for internal recruitment advertising, newsletters,

bulletin boards, and other forms of internal communication may disseminate
information to current employees interested to apply for job openings within the
company.

 Training and orientation of newly promoted or transferred current employees are

less expensive and do not take too much time since they are already familiar with
company policies.
  The process of recruitment and selection is faster because the candidate for
transfer or promotion is already part of the organization.

Disadvantages

 The number of applicants to choose from is limited

 Favoritism may influence a manager to recommend a current employee who were

not considered for the position. Some may also accuse the management of bias
for choosing an employee who is perceived to be less qualified for the job opening.

Reading 3: Selection

Selection is the process of choosing individuals who have the required qualifications to
fill present and expected job openings.

The selection process typically includes the following steps:

1. Establishing the selection criteria – selecting human resources in an organization

requires understanding of the nature and purpose of the job position that has to be
filled.

2. Requesting applicants to complete the application form – application forms must be

completed because these provide the needed information about the applicant.

3. Screening by listing applicants who seem to meet the set criteria – this involves the
preparation of a shortlist of applicants who meet the minimum requirements of the
job position to be filled, it is done to avoid wasting time by conducting interviews with
applicants who do not meet the set criteria for the job opening.

4. Screening interview to identify more promising applicants – included in the shortlist

are the applicants who will be asked to undergo formal interview by the
supervisor/manager, applicants who are deemed to be the most fitted for the job
opening belong in this shorter list.

5. Interview by the supervisor/manager or panel interviewers – through formal

interview of the most promising applicants, other characteristics of the applicants
may be revealed or observed by the supervisor/manager or panel interviewers.

6. 6. Verifying information provided by the applicant has not given false information
about himself or herself, verification is necessary. Background checking must also be
done to avoid the hiring of applicants with criminal record and to ascertain that he
or she has good moral character.

7. Requesting the applicant that he or she has been chosen for the position applied for –
informing the applicant may be done or in writing by the managers who give the final
decision recording the applicant’s hiring. Final instructions regarding the company’s
rules and regulations for hiring an applicant must be given in this step.

8. Informing the applicant that he or she has been chosen for the position applied for –
informing the applicant may be done verbally or in writing by the managers who give
 the final decision regarding the applicant’s hiring. Final instructions regarding the
company’s rules and regulations for hiring an applicant must be given in this step.

Types of Job Interviews

Interviews are important in determining the qualifications of an applicant and gauging

his or her ability to perform a job. Interviews may come in different forms

 Structure 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.ne-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 in
asking questions.

Types of Employment Tests

 Intelligence test – it is designed to measure the applicant’s mental capacity, it

tests his or her cognitive capacity, speed of thinking, and ability to see
relationships in problematic situations.

 Proficiency and aptitude test – it tests his or her present skills and potential for
learning other skills

 Personality test – it is designed to reveal the applicant’s personal characteristics

and ability to relate with others.

 Vocational test – it tests to show the occupation best suited to applicant

Limitation of the Selection Process

In reality, there is no one perfect way to select a firm’s human resources. Predicting
performance difficult as there is a difference between what individuals can do at present
and what they will do in the future. This is because a person’s needs and wants change,
and so do an organization’s climate and environment. The fact that many selection
approaches and tests have been devised is enough proof that management experts are
still in search of what could be done to improve the present selection process.

Reading 4: Training and Development

Training is the learning provided by organizations to its employees that

concentrates on short term job performance and acquisition or improvements of job
related skills while development is the learning given by the 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.

Both training and development are essential to the success of today’s

organizations. In order to have an edge over their rival organizations, managers must see
to it that their human resources have the necessary knowledge and expertise, training
and development work toward this end by providing continuous learning activities and
opportunities. The typical scope of training covers the following procedures:

1. Conducting the training needs assessment – this must be done systematically

in order to ascertain if there really is a need for training. Managers must
first try to observe the business condition and the economic, strategic and
technological changes that are happening in the organization’s environment
before proceeding to the analyses of the organization, tasks, and
person/individuals, as all these are determinants of training types required
for the maintenance of the firm’s stability

2. Designing the training design – this phase involves the stating of the
instructional objectives that describe the knowledge, skills and attitudes that
have to be acquired or enhanced to be able to perform well. In short, these
are performance-centered objectives that must be aligned with the firm’s
 objectives

Another thing to be considered is trainee readiness and motivation. This refers

to the trainees’ background knowledge and experience, so that the training to
be given them will not go to waste.

3. Implementing the training design – various types of training program

implementation include: on-the-job training, apprenticeship training, classroom
instructions, audio visual method, simulation method, and e-learning.

4. Evaluating the training

The positive effects of the training program may be seen assessing the
participants’ reactions, their acquired learnings, and their behavior after
completing the said training. The effect of training may also be reflected by
measuring the return on investment (ROI) or through the benefits reaped by
the organization, which were brought about by their training investment.

Employee Development

Developing employees is part of an organization’s career management program

and its goal is to match the individual’s development needs with the needs of the
organization. The individual employee must know himself or herself well, identify his or
her own knowledge, skills, abilities, values and interests, so that he or she could also
identify the career pathway that he or she would like to take. Although he or she is
encouraged to take responsibility for his or her own career, the organization must, at
regular intervals, provide him or her, with the results of his or her performance
evaluations and the organization plans or direction that may be related to his or her own
career plans, thus establishing a favorable career development climate for him or her,
which may lead, ultimately, to the blending of his or her career development goals with
organizational goals.

Reading 5: Compensation/Wages

Compensation refers to all forms of pay given by employers to their employees

for the performance of their jobs.

Types of Compensation

Compensation can come in different forms. It may be direct, indirect, or nonfinancial.

 Direct compensation – it includes workers’ salaries, incentive pays, bonuses and

commissions.

 Indirect compensation – it includes benefits given by employers other than financial

 remunerations (e.g. travel, educational and health benefits, and others)

 Nonfinancial compensation – it includes recognition program, being assigned to do

rewarding jobs, or enjoying management support, ideal work environment, and
convenient work hours.

Compensation: A Motivational Factor for Employees

Compensation pay represents a reward that an employee receives for good performance
that contributes to the company’s success, in relation to this, the following must be
considered:

 Pay Equity

 The Equity Theory is a motivation theory focusing on employees’ response

to the pay that they receive and the feeling that they receive less or more
than they receive.

 Pay equity is achieved when the pay given to them by their employers is
equal to the value of the job performed, thus this motivates them to
perform well and to do their jobs to the best of their abilities.

 Expectancy Theory

 It predicts that employees are motivated to work well because of the

attractiveness of the rewards or benefits that they may possibly receive
from a job assignment.

 The employee’s perception of the compensation or pay attached to a job

position is an important factor in ascertaining the motivational value of
compensation.

Bases for Compensation

 Piecework basis – when pay is computed according to the number of units

produced

 Hourly basis – when pay is computed according to the number of work hours
rendered

 Daily basis – when pay is computed according to the number of work days
rendered

 Week y basis – when pay is computed according to the number of work weeks
rendered

 Monthly basis – when pay is computed according to the number of work months
rendered
 Compensation rates are influenced by internal and external factors. Among the
internal factors are the organization’s compensation policies, the importance of the job,
the employees’ qualifications in meeting the job requirements, and the employer’s
financial stability.

External factors, on the other hand, include local and global market conditions,
labor supply, area, regional wage rates, cost of living, collective bargaining agreements,
and national and international laws among others.

The daily minimum wage rate differs in relation to factors such as geographical
area and industry or sector . The National Wages and Productivity Commission
(https://nwpc.dole.gov.ph/) is the government agency concerned with minimum wage
determination in the country.
Reading 6: Performance Evaluation/Appraisal

Performance evaluation is a process undertaken by the organization usually done

once a year, designed to measure employees work performance.

Purposes of Performance Evaluation

Improving individual job performance through performance evaluation is just one

of the reasons why employees are subjected to assessments on a continuous basis. There
are other purposes behind employee assessment that are beneficial to both the company
and the employees.

 Administrative purposes – these are fulfilled through appraisal/evaluation

programs that provide information that may be used as basis for compensation
decisions, promotions, transfers, and terminations.

 Developmental purposes – these are fulfilled through appraisal/evaluation

programs that provide information about employees’ performance and their
strengths and weaknesses that may be used as basis for identifying their training
and development needs.

 Inflated ratings resulting from evaluator’s avoidance of giving low scores

 Evaluator’s appraisal focusing on the personality of the evaluate and not on his or
her performance

 Unhealthy personality of the evaluator

 Evaluator being influenced by organizational politics

Reading 7: Reward Systems

Reward is something given or done in return, especially in the form of salary, a

gift, prize, incentive pay, benefits, or recompense for merit. Service or achievement, and
which may have a motivating effect on the employee.

Organizations offer competitive rewards systems to attract knowledgeable and

skilled people and to keep them motivated and satisfied once they are employed in their
firm. Further, rewards promote personal growth and development and present fast
employee turnover.

Types of Rewards

Management offer different types of rewards.

Monetary rewards are those rewards that pertain to money, finance, or currency.

 Pay/salary - financial remuneration given in exchange for work performance

 that will help the organization attain its goals, e.g., weekly. Monthly, or hourly pay,
piecework compensation, etc.

 Benefits – indirect forms of compensation given to employees/workers for the

purpose of improving the quality of their work and personal lives , e.g. health
care benefits, retirement benefits, educational benefits and others.

 Incentives – rewards that are based upon a pay for performance philosophy, it
establishes a baseline performance level that employees or groups of employees
must reach in order to be given such reward or payment, e.g., bonuses, merit pay,
sales incentives, etc.

 Executive pay – a compensation package for executives of organizations that

consists of five components: basic salary, bonuses, stock plans, benefits, and
perquisites

 Stock options – are 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

Nonmonetary rewards are those rewards that do not pertain to money,

finance, or currency. These refer to intrinsic rewards that are self-granted and
which have a positive psychological effect on the employee who receives them.

 Award – nonmonetary reward that may be given to individual employees or

groups/teams for meritorious service or outstanding performance, e.g., trophies,
medals, or certificates of recognition

 Praise – a form of nonmonetary, intrinsic reward given by superiors to their

subordinates when they express oral or verbal appreciation for excellent job
performance
MODULE 6 Leading

Learning Outcomes:

 Discuss the nature of directing

 Identify the different theories of motivation

 Differentiate styles of management

 Appreciate the role of communication in directing people within the organization

 Recognize the interrelationship of Filipino from foreign cultures

Module Topics:

 Definition of Leading

 Early Theories of Motivation

 Leadership Theories
  Communication

Discussion

Reading 1: Definition of Leading

Leading is a management function that involves inspiring and influence people in the
organization to achieve a common goal.

Leading an Organization

Keywork attitudes exhibited by group/teams of workers must be taken into

consideration in leading organization because of the diversity of their attitudes toward things
and events at work. Managers/leaders must focus their leadership strategies on the following
key work attitudes in order to avoid distraction caused by varied reactions and behaviors.

Key Work Attitudes Description

Organizational Citizenship  Employee behavior that exceeds work role
Behavior (OCB) requirements, behaviors that the call of duty
 This behavior brings about organizational level outcomes
(productivity, lower costs, customer satisfaction, etc.).
Organizational Commitment  Extent to which an individual employee identifies with
an organization and its goals
 Having organizational commitment is an important work
attitude because committed individuals are expected to
display a willingness to work harder to achieve
organizational goals and to remain employed in the firm
for a long period of time.
Job Satisfaction and  Job satisfaction refers to employees’ general attitude
Productivity toward their respective jobs
 Those with high level of job satisfaction have a positive
attitude toward their respective jobs and vice versa.

Reading to 2: Motivation
Early Theories of Motivation

1. Maslow’s Hierarchy of Needs Theory – It refers to Abraham Maslow’s hierarchy

of five human, freedom, status

1.1 Physical or physiological needs – the basic needs such as food, water, air, sex and
shelter

1.2 Safety or security – protection against threat and deprivation

1.3 Social – friendship, affection, belonging and love

1.4 Ego or self esteem – independence, achievement, freedom, status and recognition

1.5 Self-actualization – realizing one’s full potential, becoming everything one is capable
of being.

2. Herzberg Two Factor Theory of Motivation – Herzberg’s two factor theory distinguished
between two broad categories that affect people working on their jobs.
 2.1. Hygiene factors – are characteristics of the workplace: company policies, working
conditions, pay coworkers, supervision, and so forth . These factors can make people
unhappy if they are poorly managed. If they are well, and viewed as positive by
employees, the employees will no longer be dissatisfied. However, no matter how good
these factors are , they will not make people truly satisfied or motivated to do a good job.

2.2. Motivators – describe the job itself – that is what people do at work. Motivators are
the nature of the work itself, actual job responsibilities, opportunities for personal
growth and recognition, and the feelings of achievement the job provides. According to
Herzberg, the key to true job satisfaction and motivation to perform lies in this category
of factors. When motivators are present, jobs are presumed to be satisfying and
motivating for most people.

3. McClelland’s Three Needs Theory – David McClelland identified additional basic needs that
motivate people. According to McClelland, these needs are most relevant to managers.

3.1. The need for achievement – a strong orientation toward accomplishment and an
obsession with success and goal attainment.

3.2. The need for affiliation – a strong desire to be liked by other people.

3.3. The need for power – a desire to influence or control other people.

Reading 3: Leadership Theories

Leadership is the process of inspiring and influencing a group of people to achieve a common goal.

Theories Explanation
Fiedler Model  It was proposed by Fred Fiedler, an organizational behavior
scholar
 This situational leadership theory is based on the assumption
that a leader’s effectiveness is contingent or dependent on the
extent to which a leader’s style is fitted to actual situations in
the organization’s internal and external environment.
 Fiedler described such leader’s style as either task-motivated or
relationship motivated , either focused on the achievement of
goals or more concerned about having good relationship with
subordinates.
 Situational control which may be low or high, is also exhibited.
High control means that the leader has the capability to influence
work results while low control implies very little influence.
Herse- Blanchard  It was proposed by Paul Hersey and Ken Blanchard
Model  The theory focused on subordinates’ readiness or the extent to
which said subordinates have the ability and willingness to
 accomplish a specific work assignment.
 Hersey and Blanchard gave four (4) stages of subordinate
readiness
R1 – where subordinates are both unable and unwilling to
accomplish the task
R2 – where the subordinates are unable but willing to do the
task
R3 – where the subordinates are able but unwilling to do their
assigned tasks
R4 – where the subordinates are both able and willing to do
what the leader wants to complete the task.
Path – Goal Theory  It was developed by Robert House.
 It states that the leader’s task is to lead his followers or
subordinates in achieving their goals by providing them direction
needed in order to ensure compatibility of theses said goals with
organization’s goal.
 House identified four (4) leadership behaviors:
 directive leadership – where the leader gives specific
guidelines to followers so that task accomplishment
would be easier
 supportive leadership – where the leader shows concern
and friendliness to subordinates
 participative leadership – where the leader asks for
suggestions from followers before decision – making
 achievement – oriented leadership – where the leader
sets the goals that subordinates must try to achieve.

Reading to 4: Communication

Communication is the exchange of information and understanding . It applies to all

management functions and its general purpose for the organization is to bring about positive
changes that influence activities leading to the firm’s welfare.

The communication process starts with the sender who has an idea or a message, which is then
transmitted through a selected channel to the receiver, who in turn has to be ready for the
reception of the message, so that it could be decoded into thoughts. Accurate communication
occurs if the sender and receiver give the same or similar meanings to the words or terms used
in the message.

Types of Communication

Communication may be verbal (through the use of oral and written words) on nonverbal
(through body movements, gesture, facial expressions, eye contact, and by touching).

It may also be classified as formal, if communication takes place within prescribed, routine
organizational work arrangements, or informal, if communication is not defined by an
organization’s hierarchical structure.

Communication is formal when the manager gives an assignment to a subordinate and informal
when employees talk to their friends in the office about a weekend party or a vacation that they
plan to take.

Direction and Flow of Communication

Direction/Flow Explanation
Vertical communication It involves communication flow between people
belonging to different organizational levels.

Upward communication It is the flow of communication from an employee who

belongs to a lower hierarchical level to the
boss/manager who belongs to a higher hierarchical
level.
Downward communication It is the flow of information from the manager, who
belongs to a higher hierarchical level, to the
subordinates/employees, who belong to lower
hierarchical levels.

Horizontal/lateral communication It takes among employees belonging to the same

hierarchical level.
Diagonal communication It entails communicating with someone or others who
belong to different departments/units and different
hierarchical levels.
References:

M: Management 6th Edition by Thomas S. Bateman, Scott A. Snell and Rob Konopaske, Copyright
2020, Published by McGraw-Hill Education

Organization and Management by: Vibal Group, Inc., Copyright 2020

1st sem 2024-2025