SS INSTITUTE OF COMMERCE

SCO 82, 1st FLOOR, SECTOR 46-C, CHANDIGARH

H.NO 1434, SECTOR-15, PANCHKULA,
MOBILE: 9872398046, 0172-4655515
email: [email protected]
STAFFING
“Our assets walk out of the door each evening. We have to make sure that they come back the next morning” (Narayana Murthy)
STAFFING is that part of the process of management which is concerned with obtaining, utilizing, and maintaining satisfactory
and satisfied work force.
Staffing has been described as managerial function of filling and keeping filled the positions in the organization structure.
STAFFING FUNCTION FOLLOWS THE PLANNING AND ORGANIZING FUNCTION – this statement is
true only for new enterprises not for existing enterprise. In a new enterprise, the staffing function follows the planning and
organizing functions. After deciding what is to be done and after creation of the organization structure, the management is in
position to know the human resource requirements of the enterprise at different levels. In an existing enterprise, staffing is a
continuous process because new jobs may be created and some of the existing employees may leave the organization.
FEATURE OF STAFFING
Staffing is a continuous process because new jobs may be created and some of the existing employees may leave the organization.
BENEFITS TO THE ORGANISATION
1. Helps in discovering and obtaining competent personnel for various jobs.
2. Makes for higher performance, by putting right person on the right job.
3. Ensures the continuous survival and growth of the enterprise through the succession planning for managers.
4. Helps to ensure optimum utilization of the human resources. By avoiding overmanning, prevents
underutilization of personnel and high labour costs.
5. Improves job satisfaction and a morale of employees through objective assessment and reward for their
contribution.
CONSEQUENCES OF NOT PERFORMING STAFFING FUNCTION EFFICIENTLY
Staffing function must be performed efficiently by all organizations. If right kind of employees are not available it will
lead to wastage of materials, time, effort, and energy and resulting in lower productivity and poor quality of products.
STAFFING AS PART OF HUMAN RESOURCE MANAGEMENT
Staffing is seen as a generic function of management. It deals with the human element of management. Managing the
human component of an organization is the most important task because the performance of an organization depends
upon how well this function is performed. The success of an organization in achieving its goals is determined to a great
extent on the competence, motivation, and performance of its human resource.
When the manager performs staffing function his role is slightly limited. Some of these responsibilities will include.
• Placing the right person on the right job
• Introducing new employees to the organization
• Training employees and improving their performance
• Developing their abilities
• Maintaining their morale
 • Protecting their health and physical conditions
In small organizations, managers may perform all duties related to employee’s salaries, welfare and working conditions.
But as organization grow and number of persons employed increases, a separate department called the human resource
department is formed which has specialists in managing people.
Human resource management includes many specialized activities and duties which the human resource personnel must
perform. These duties are:
• Recruitment – search for qualified people
• Analyzing jobs- collecting information about jobs to prepare job descriptions.
• Developing compensation and incentive plans.
• Training and development of employees for efficient performance and career growth
• Maintaining labour relations and union management relations.
• Handling grievances and complaints.
• Providing for social security and welfare of employees
• Defending the company in lawsuits and avoiding legal complications.
Evolution of human resource management
Trade union movement
Trade union movement led to the need of a person who could act as an effective link between the owners and workers.
Thus, the concept of labour welfare officer came into being. His role was limited to minimum welfare activities of
employees.
Factory system
With the introduction of factory system, thousands of persons began to be employed under one roof. The job of hiring
people for the organization was given to one man, who later on was assigned the responsibility of recruitment, selection
and placement of personnel. This led to emergence of personnel officer in the first place and personnel manager later
on. Human relation approach
Human relations approach recognizes human factor as the most important factor. Fast changing technological
developments, however, necessitated new skill development and training of employees and therefore replace personnel
manager with human resource manager.
Staffing is both line as well as staff activity: - staffing is a function of management like planning, organizing, directing
and controlling. It is also distinct functional area of management just like marketing, finance, production. Therefore, it is
referred to as both line as well as a staff activity.

STAFFING PROCESS
1. ESTIMATING THE MANPOWER REQUIREMENTS:
Understanding the manpower requirements would necessitate workload analysis on the one hand and work
force analysis on the other.
Workload analysis would enable an assessment of the number and types of human resources necessary for the
performance of various jobs and accomplishment of organizational objectives.
Workforce analysis reveals the number and type available.
Such an exercise reveals whether we are understaffed, overstaffed or optimally staffed.
A situation of understaffing would necessitate the starting of the recruitment process. However, before that can
be done, it is important to translate the manpower requirements into specific job description and the desirable
profile- the desired qualifications, experience, personality characteristics and so on.
2. RECRUITMENT:
Recruitment may be defined as the process of searching for the prospective employees and stimulating them to
apply for jobs in the organization. The information generated in the process of writing of job description and
candidate profile may be used for developing the ‘situation vacant’ advertisement. This step involves locating
the potential candidate or determining the sources of potential candidates. The essential objective is to create a
pool of the prospective candidates.
Sources of recruitment can be internal and external.
3. SELECTION :
Selection is the process of choosing from among the pool of the prospective job candidates developed
at the stage of recruitment.
In case of highly specialized jobs where the choice space is very narrow, the selection process serves
two important purposes:
(i) It ensures that the organization gets the best among the available, and
(ii) It enhances the self esteem and prestige of those selected and conveys them the seriousness
with which things are done in the organization.

The steps involve tests and interviews. Those who are able to successfully negotiate the test and the
interviews are offered an employment contract, a written document containing the offer of
employment, the terms and conditions and the date of joining.

4. PLACEMENT AND ORIENTATION:

Orientation refers to introducing the selected employee to other employees and familiarising him with
the rules and policies of the organisation.
Placement refers to the employees occupying the position or post for which the person has been
selected.
5. TRAINING AND DEVELOPMENT-
Organisations have either in-house training centers or have forged alliances with training and
educational institutes to ensure continuing learning of their employees. The organisation too benefits
in turn. If employees motivation is high, their competencies are strengthened, they perform better and
thus, contribute more to organisational effectiveness and efficiency.
6. PERFORMANCE APPRAISAL:
After the employees have undergone a period of training and they have been on the job for some time,
there is a need to evaluate their performance. Performance appraisal means evaluating an employee’s
current and past performance as against certain predetermined standards. The performance appraisal
process, therefore, will include defining the job, appraising performance and providing feedback.
7. PROMOTION AND CAREER PLANNING-
Managers need to design activities to serve employees long-term interests also. They must encourage
employees to grow and realise their full potential. Promotions are an integral part of people’s career.
They refer to being placed in positions of increased responsibility, more pay and job satisfaction.
 8. COMPENSATION:
Compensation refers to all forms of pay or rewards going to employees. It may be in the form of direct
financial payments like wages, salaries, incentives, commissions and bonuses and indirect payments
like employer paid insurance and vacations.
Direct financial payments are of two types: time based or performance based.
Time based plan means salary and wages are paid either daily, weekly or monthly or annually.
Performance based plans means salary/wages are paid according to piecework.
There are some other factors also which influence the design of any plan, like legal (labour law), union,
company policy and equity.

RECRUITMENT

Recruitment has been defined as the process of searching for prospective employees and stimulating them
to apply for jobs in an organisation.

STEPS OF RECRUITMENT

1. Identification of the different sources of labour supply

2. Assessment of their validity
3. Choosing the most suitable source or sources
4. Inviting applications from the prospective candidates, for the vacancies
SOURCES OF RECRUITMENT

INTERNAL SOURCES
There are two important sources of internal recruitment
1. TRANSFERS: It involves shifting of an employee from one job to another, one department to
another or from one shift to another without any change in duties and responsibilities, working
conditions and no change in salary. It is practically a horizontal movement of employees.
Benefits of transfer:
i. avoid termination and
ii. in removing individual problems and grievances
iii. It can also be used for training of employees for learning different jobs.
2. PROMOTIONS: Business enterprises follow the practice of filling higher jobs by promoting
employees from lower jobs. Promotion leads to shifting an employee to higher position, carrying
higher responsibility, status and pay.
Promotion is a vertical shifting of employees. This practice helps to improve the motivation, loyalty
and satisfaction level of employs. It has a great psychological impact over the employees because a
promotion at the higher level may lead to a chain of promotion at lower levels in the organisation

EXTERNAL SOURCES

Existing staff may be insufficient or they may not fulfil the eligibility criteria of the jobs to be filled.
External recruitment provides wide choice and brings new blood in the organisation. The commonly
used external source of recruitment are discussed below:
1. DIRECT RECRUITMENT: A notice is placed on the noticeboard of the enterprise specifying the
details of the job available.
jobseekers assemble outside the premises of the organisation on the specified date and selection is
done on the spot
The practice of direct recruitment is usually followed for casual vacancies of unskilled or semiskilled
jobs
Such workers are known as casual or Badli workers and they are paid remuneration on daily wage
basis.
This method is very inexpensive as it does not involve any cost of advertising the vacancies.
It is suitable for filling casual vacancies when there is rush of work or when some permanent
workers are absent.
2. LABOUR CONTRACTORS:
Labour contractors maintain close contact with labourers and they can provide the required
number of unskilled workers at short notice.
Workers are recruited through labour contractors who are themselves employees of the
organisation.
The disadvantages of this system are that if the contractor himself decides to leave the
organisation, all the workers employed through him will follow suit.
3. RECOMMENDATIONS OF EMPLOYEES :
applicants introduced by present employees , or their friends and relatives may prove to be a good
source of recruitment.
Such applicants are likely to be good employees because the background is sufficiently known.
A type of preliminary screening takes place because the present employees know Both the
company and the candidates and they would try to satisfy both.
4. PLACEMENT AGENCIES AND MANAGEMENT CONSULTANT:
in technical and professional areas, private agencies and professional bodies appear to be doing
substantive work. Placement agency provide a nationwide service in matching personnel demand
and supply. These agencies compiled biodata of a large number of candidates and recommend
suitable names to their clients. Such agencies charge fee for their services and they are useful
where extensive screening is required.
Management consultancy firms helps the organisation to recruit technical, professional and
managerial personnel. They specialise in middle level and top level executive placements. They
maintain data bank of persons with different qualifications and skills and even advertise the jobs
on behalf of their clients to recruit right type of personnel.
5. EMPLOYMENT EXCHANGE: employment exchanges run by the government are regarded as a good
source of recruitment for unskilled and skilled operative jobs.
In some cases, compulsory Notification of vacancies to employment exchange is required by law.
Employment exchanges help to match personal demand and supply by serving as link between
jobseekers and employers.
The records of employment exchange are often not up to date and many of the candidates referred
by them may not be found suitable.
 6. CASUAL CALLERS: many reputed business organisations keep a database of unsolicited applicants
in their offices.
Search job seekers maybe valuable source of manpower.
A list of such jobseekers can be prepared and can be screened to fill the vacancies as they arise
Major major merit of this source of recruitment is that it reduces the cost of recruiting workforce in
comparison to other sources.
7. CAMPUS RECRUITMENT
Colleges and Institute of management and technology have become a popular source of
recruitment for technical, professional and managerial jobs. Many big organisations maintain a
close link
With the universities, vocational schools and management institutes to recruit qualified personnel
for various jobs. Recruitment from educational institutions is a well established practice of
businesses. This is referred to as a campus recruitment.
8. ADVERTISEMENT
Advertisement in the newspapers or trade and professional journals is generally used when a wider
choice is required. Most of the senior positions of industry as well as commerce are filled by this
method. The advantage of advertising vacancies is that more information about the organisation
and job can be given in the advertisement. Advertisement gives the management a wide range of
candidates from which to choose. Advertisement may be placed in leading newspapers.
Its disadvantage is that it may bring in a flood of response, and many times from quite unsuitable
candidates
9. ADVERTISING ON TELEVISION
The practice of telecasting of vacant post over television is gaining importance these days.
The detailed requirements of the job and quality is required to do it at publicised along with the
profile of the organisation where vacancies exists
10. WEB PUBLISHING
Internet is becoming a common source of recruitment these days. There are certain websites
specifically designed and dedicated for the purpose of providing information about both jobseekers
and opening. They are very commonly visited by the both prospective employees and organisation
organisation searching for the people.
For example websites such as www.naukri.com and www.jobstreet.com

MERITS AND DEMERITS OF INTERNAL SOURCES AND EXTERNAL SOURCES

INTERNAL SOURCE(ADVANTAGES) EXTERNAL SOURCE(DISADVANTAGES)

1. Employees are motivated to improve their 1. DISSATISFACTION AMONG EXISITNG STAFF:
performance. Promotion at higher level external recruitment may lead to
motivate to improve performance, to work dissatisfaction and frustration among
with loyalty and remain satisfied with their existing employees. They may feel that their
jobs. chances of promotion are reduced.
2. It simplifies the process of selection and 2. LENGHTY PROCESS: recruitment from
placement. Candidates performance can be external sources takes a long time. The
evaluated more accurately and business has to notify the vacancies and wait
economically. This is more reliable way of for applications to initiate the selection
 recruitment. process.
3. Filling of jobs internally is cheaper as 3. COSTLY PROCESS: it is very costly to recruit
compared to getting candidates from staff from external sources. A lot of money
external sources. has to be spent on advertisement and
4. Transfer is a tool of training the employees processing of applications.
to prepare them for higher jobs. Also
recruited from within the organisation do
not need induction training.
5. Transfer has the benefit of shifting
workforce from the surplus departments to
those where there is shortage of staff.

INTERNAL SOURCE (DISADVANTAGES) EXTERNAL SOURCE (ADVANTAGES)

1. When vacancies are filled through internal 1. QUALIFIED PERSONNEL: management can
promotions, the scope for induction of fresh attract qualified and trained people to apply
talent is reduced. Complete reliance on for vacant jobs in the organisation.
internal source involve danger of inbreeding 2. WIDER CHOICE: When vacancies are
by stopping ‘ infusion of new blood into the advertised widely, a large number of
organisation; applicants from outside the organisation
2. The employees may become lethargic if they apply.
are sure of time-bound promotions. 3. Fresh talent: the present employees may be
3. The spirit of competition may be hampered insufficient or they may not fulfil the
4. Frequent transfers of employees may often specifications of the jobs to be filled.
reduce the productivity of the organisation. External recruitment provide wider choice
5. A new enterprise cannot use internal source and brings new blood in the organisation.
of recruitment. No organisation can fill all However, it is expensive and time
the vacancies from internal source. consuming.
4. COMPETITIVE SPIRIT: if a company taps
external sources, the existing staff will have
to compete with the outsiders. They will
work hard to show better performance.

SELECTION
PROCESS OF SELECTION:
1. PRELIMINARY SCREENING- preliminary screening help the manager in eliminate unqualified or
unfit job seekers based on the information supplied in the application forms.
Preliminary interviews help reject misfits for reasons, which did not appear in the application
forms.
2. SELECTION TESTS- An employment test that attempts to measure certain characteristics of
individuals.
Important tests used for selection of employees:
a) Intelligence tests: this is one of the important psychological tests used to measure the level of
intelligence of an individual. It is an indicator of a person’s learning ability or the ability to make
decisions and judgements.
b) Aptitude test: it is measure of individuals potential for learning new skills. It indicates the
person’s capacity to develop. Such tests are good indices of a person’s future success score.
 c) Personality test: provides clues to a person’s emotions, her reactions, maturity and value
system etc.
d) Trade test: these test measures the existing skills of the individual. They measure the level of
knowledge and proficiency in the areas of professions or technical training.
The difference of aptitude and trade test is :
Aptitude test measures the potentials to acquire skills and trade test measures the actual skills
possessed.
e) Interest test: interest test are used to know the pattern of interest and involvement of a person
towards job.
3. EMPLOYMENT INTERVIEW- Interview is a formal, in-depth conversation. The role of the
interviewer is to seek information and that of interviewee is to provide the same.though in present
times, the interviewee also seeks information from interviewer.
4. REFERENCE AND BACKGROUND CHECKS: many employers request names, address and telephone
numbers of references for the purpose of verifying information and gaining additional information
on an applicant.
5. SELECTION DECISION: The final decision has to be made from among the candidates who pass the
tests, interviews and reference checks. The views of concerned manager will generally be
considered in the final selection because it is he/she who is responsible for the performance of the
new employee.
6. MEDICAL EXAMINATION: the candidate is required to undergo a medical fitness test. The job offer
is given to the candidate being declared fit after the medical examination.
7. JOB OFFER: job offer is made through a letter of appointment. Such a letter generally contains the
date by which the appointee must report on duty. The appointee must be given a reasonable time
for reporting.
8. CONTRACT OF EMPLOYMENT- certain documents needs to be executed by the employer and the
candidate. One such document is the attestation form. This form contains certain vital details
about the candidate, which are authenticated and attested by him or her.
Basic information that should be included in a written contract of employment will according to the
level of job. Following checklists set out the typical headings: job title, duties, responsibilities, date
when continuous employment starts, rates of pay, allowances, hours of work, leave rules, sickness,
grievance procedure, work rules, termination of employment.

TRAINING AND DEVELOPMENT

TRAINING : -is any process by which aptitudes, skills and abilities of employees to perform specific jobs are
increased. It is a process of learning new skills. It attempts to improve their performance on the current job or
prepare them for intended job.

EDUCATION :-is the process of increasing the knowledge and understanding of employees. It does not provide
definite answers, but rather develops a logical and rational mind. Education imparts qualities of mind and
character and understanding of basic principles and develop the capacities of analysis, synthesis and
objectivity.
Difference between training and education

Education is broader in scope than training. Training is tied to the goals of organisation more than

Development :- refers to the learning opportunities designed to help employees grow. It covers not only those
activities which improve job performance but also those which bring about growth of the personality, help
individuals in the progress towards maturity and actualisation of their potential capacities so that they
become not only good employees but better men and women.

Difference between training and development

Training Development

It is a process of increasing It is a process of learning and

knowledge and skills. growth .
It is to enable the employee to It is to enable the overall growth
the job better. of the employee.
It is a job oriented process. It is a career oriented process.

Training Methods

On the job methods – refer to the method that are applied to the workplace, while the employee is actually
working.

Induction training – is that training that an employee receives when he/she first join a business or
organisation. Induction training is important as it enables a new recruit to become productive as quickly as
possible . It can avoid costly mistakes by recruits not knowing the procedures or techniques of their new jobs.
The length of induction training will vary from job to job and will depend on the complexity of the job, the size
of the business and the level or position of the job within the business.

The following areas may be included in induction training :

• Learning about the duties of the job

• Meeting new colleagues
• Seeing the layout of the premises
• Learning about the values and aims of the business
• Learning about the internal workings and policies of the business .
Apprenticeships programme- put the trainee under the guidance of a master worker. People seeking to enter
skilled jobs to become, for example, plumbers, electrician or iron-workers are often required to undergo
apprenticeship training. A uniform period of training is offered to trainees, in which both fast and slow learn
here, are placed together. Slow learner may require additional training.

Internship training – it is a joint programme of training in which educational institutions and business firms
cooperate. Selected candidates carry on the regular studies for the prescribed period. They also work in some
factory or office to across practical knowledge and skills
Vestibule training – Employees learn their jobs on the equipment they will be using, but the training is
conducted away from the actual work floor. Actual work environments are created in a class rooms and
employees use the same materials, files and equipment. This is usually done when employees are required to
handle sophisticated machinery and equipment.

BENEFITS OF TRAINING-

BENEFITS TO THE ORGANISATION-

1. REDUCES WASTAGE OF EFFORTS AND MONEY- Training is a systematic learning always better than hit
and trial methods which lead to wastage of efforts and money.
2. EARNING HIGHER PROFIT- It enhances employee productivity both in terms of quantity and quality,
leading to higher profits.
3. FUTURE MANAGER- Training equips the future manager who can take over in case of emergency.
4. REDUCES ABSENTEEISM- Training increases employee morale and reduces absenteeism and employee
turnover.
5. EASY TO ADAPT TO CHANGES- It helps in obtaining effective response to fast changing environment-
technological and economic.

BENEFITS TO THE EMPLOYEE-

1. IMPROVED SKILLS AND KNOWLEDGE- it can lead to better career of the individual.
2. INCREASED PERFORMANCE- it can help an employee to earn more.
3. LESS PRONE TO ACCIDENTS- Training make the employee more efficient to handle machines.
4. MORALE OF EMPLOYEES- Training increases the satisfaction and morale of employees.