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Staffing is a critical managerial function that involves filling and maintaining positions within an organization, ensuring the right people are placed in the right jobs to enhance performance and achieve organizational goals. It encompasses various processes including recruitment, selection, training, and performance appraisal, all aimed at optimizing human resource utilization and job satisfaction. Effective staffing is essential for organizational success, as it directly impacts productivity, employee morale, and the overall achievement of business objectives.
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0% found this document useful (0 votes)
28 views21 pagesChapter 6
Staffing is a critical managerial function that involves filling and maintaining positions within an organization, ensuring the right people are placed in the right jobs to enhance performance and achieve organizational goals. It encompasses various processes including recruitment, selection, training, and performance appraisal, all aimed at optimizing human resource utilization and job satisfaction. Effective staffing is essential for organizational success, as it directly impacts productivity, employee morale, and the overall achievement of business objectives.
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/ 21
CHAPTER
6 STAFFING
6.1_ STAFFING: AN INTRODUCTION
+ [Staffing is the managerial function of filling and Keeping filled positions in the organisation
structure. This is achieved by, first of all, identifying requirement of work force, followed by
recruitment, selection, placement, promotion, appraisal and development of personnel, to fill the
roles designed into the organisation structure.
+ [This is termed as “staffing” function of management, which simply means “putting people to
jobs.”
Staffing is a function which makes sure your assets walk out & come back the next|| VIMP LINE
day happy and satisfied. FOR CASE
Itis a Generic Functions of Management, STUDIES
6.2, NEED AND IMPORTANCE OF STAFFING
‘A. NEED OF STAFFING:
= In any organisation, there is a need for people to perform work. The staffing function of
management fulfills this requirement andifinds the right people for the right job.
= Since the right people have to be chosen, while selecting a person, the human element is very
important. Staffing provides the human element or instinct while selecting a person,
B. IMPORTANCE OF STAFFING:
Human resources are the foundation of any business. The right people can help you take your
business to the top; the wrong ones can break your business. Hence, staffing is the most
fundamental and critical drive of organisational performance.
Human resources are the most important asset of an organisation. The ability of an organisation
to achieve its goals depends upon the quality of its human resources.
The following points highlights the importance of staffing to the organisation:
Obtaining competent personnel
Continuous survival and growth
>|
Higher performance
Important Of -
Staffing Optimum utilisation of human resource
»| Improves job satisfaction
Helps in achieving organisational goals
Fig 6.1 Importance Of Stalling
T. Obtaining competent personnel: Proper stalling ensures higher performance by pulling
right person on the right job.
2, Continuous survival and growth: Proper staffing ensures continuous survival and growth
of an enterprise
3. Higher performance: Proper staffing ensures higher performance by putting right person on
the right job.
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-45-45-47} (E00) 4, Optimum utilisation of human resource: Proper staffing helps to ensure optimum
utilisation of human resources. By avoiding overmanning, it prevents under utilisation of
personnel and high labour costs, At the same time, it avoids disruption of work by indicating
in advance the shortages of personnel.
5. Improves job satisfaction: Proper staffing improves job satisfaction and morale of
employees through objective assessment and fair rewarding of their contribution,
6. Helps in achieving organisational goals: The efficiency and effectiveness of an
organisation in achieving its goals is determined to a great extent on the competence,
motivation and general effectiveness of its human resources,
CONCLUSION: Staffing function must be performed efficiently by all organisations. If right
kind of employees are not available, it will lead to wastages of materials, time, efforts and
energy, resulting in lower productivity and poor quality of products. The enterprise will not be
able to sell its products profitably. It is therefore essential that right kind of people must be
available in right number at the right time.
"They should be given adequate training so that wastage is minimum.
* They must also be induced to show higher productivity and quality by offering them proper
incentives.
STAFFING AND HU! RESOURCE MANAGEMENT (HRM)
Managing people is the most important task because the success of an organisation in achieving its
goals is determined to a great extent on the competence, motivation and performance of its human
resources.
The responsibilities of all managers include placing the right person on the right job, introducing
new employees to the organisation, training employees, improving their performance, developing
their activities, maintaining the morale and protecting their health and physical conditions.
In small organisations, managers may perform all duties related to employees, salaries, welfare and
working conditions. But as organisation grows and the number of persons employed increases, a
separate department called the human resource department is formed which has specialists in
managing people.
Human Resource Management (HRM) is that part of management process which develops and
manages the human element of the enterprise considering their resourcefulness in terms of total
knowledge, skills, creative abilities, talents, aptitudes and potential for effectively contributing to the
organisational objectives.
6.4 SCOPE OF HUMAN RESOURCE MANAGEMENT
«Specialised activities & duties of human resource managemel
Human Resource management is a wider term than staffing. It includes staffing, record keeping
personnel policies formulation, conducting personal research, providing expert services etc. hence
staffing is a part of human resource management & not all of it,
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-45-45-47} (E00) ‘The various specialized duties & activities performed by the human resource management are:
1) Recruitment etc: The primary function of the human resource manager is to find out the number
of employees required by the organization & make provision for their recruitment. To discharge
this function he indulges himself in the activities like recruitment, selection, placement, training,
promotion, transfer, etc.
2) Providing expert services: Human resource managers renders certain services which require
special knowledge, e.g.: job evaluation, performance appraisal & negotiating with trade unions
3) Developing compensation & incentive plans: Human resource manager conducts research from
time to time with the aim of improving upon the policies concerning personnel. On the basis of
his research, he brings to the notice of the top-level management new techniques in different
fields of human resource management such as new compensation & incentive plans.
4) Handling grievances & complaints: it is the responsibility of the human resource manager to
establish cordial relations between the employers & the employees. To doo this, he informs both
the parties about the expectations of each other. In the event of disputes arising between them
occasionally, he acts as a pacifier (comforter).
5) Providing for social security & welfare of employees: It is the responsibility of the human
resource management to formulate policies to provide social security and welfare of employees.
These policies cover different aspects of employees, e.g. : recruitment policy, selection policy,
promotional policy, retirement policy, etc. while formulating these policies human resource
manager keeps in mind the interests of both the organization & the employees. Moreover he
also ensures proper implementation of these policies.
6) Defending the company in law suits: In India |gdVernment has passed several legislations
measures relating to the employees, such as Workmen's compensation Act, Employees state
insurance act, etc. It is the function of the human resource manager to enforce the provisions of
such acts in his organization.
7) Keeping Personnel records: Human resource manager maintains records regarding recruitment,
selection, training, promotion, transfers, and remuneration etc of all the employees working in
his organization, These records are used as reference in future.
8) Developing the organisational structure : human resource manager reviews the organizational
structure & offers suggestions to make it more effective,
CONCLUSION
IRM is a much broader concept and staffing is an inherent part of it
STAFFING : BOTH LINE AS WELL AS A STAFF ACTIVITY
(@) Staffing is a [LINE petivity because being a management function, it is performed by all
managers,
(@)_ Staffing is a[STAFF] activity because of advisory role played by Human Resource Department.
It is a district functional area of management, just like marketing management & financial
management.
5 STAFFING PROCESS
Staffing as a process includes acquisition, retention and development of human capital of the
organisation. Staffing process includes the following steps:
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-45-45-47} (E00) Estimating Manpower Requirements
Recruitment
Selection
Placement And Orientation
Staffing Process
‘Training And Development
Performance Appraisal
Promotion And Career Planning
—+ Compensation
Fig 62 Staffing Process
1. Estimating Manpower Requirements: The primary concern of the staffing function is the
timely fulfillment of the manpower requirements in an organisation.
Manpower requirements may arise in the following cases:
(a) In case of starting a new business.
(b) In case of expanding the existing business
(©) For replacing those who quityretife or are transferred or promoted from or are fired from the
job.
In any case, finding the ‘right person for the right job; is very important.
Estimating manpower requirements means knowing how many persons and of what type of
organisation needs to perform various jobs and accomplishment of organisational objectives.
Understanding the manpower requirements necessitates work load_analysis_and_work force
analysis,
+ [Work Toad analysis: It would enable an assessment of the number and types of human
Tesources necessary for the performance of various jobs and accomplishment of
organisational objectives,
+ | Work force analysis: It would reveal the number and type available so that it may be known,
whether the organisation is understaffed, overstaffed or optimally staffed. Neither
overstaffing nor understaffing is a desirable situation,
= A situation of overstaffing somewhere would necessitate employee removal or transfer
elsewhere, otherwise, overstaffing will cause “more play, less work.”
= A situation of understaffing would necessitate the starting of the recruitment process.
However, before this, manpower requirements needs to be translated into specific job
description and the desirable profile of its occupant- the desired qualifications, experience,
personality characteristics, ete
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2, Recruitment:
Recruitment is the process of searching for prospective employees and stimulating them to apply
for jobs in the organisation.
It is a positive process which aims at attracting a number of candidates to apply for a given job.
The higher the number of people who apply for a job, the higher will be the possibility of getting
a suitable employee.
The various objective of recruitment is to create a pool of the prospective job candidates. Both
internal sources of recruitment (for example, transfers and promotions) and external sources of
recruitment (for example, advertisement, employment exchanges, etc.) may be explored. Internal
sources may be used to a limited extent. For fresh talent and wider choice, external sources are
used
3. Selection:
Selection is the process of identifying and choosing the best person out of a number of
prospective candidates who have applied for a job.
Selection is a negative process. In this process, the candidates are required to take a series of
employment tests and interviews. Those who are able to successfully negotiate the tests and
interviews are offered an employment contract, a written document containing the date of
joining,
Even in case of highly specialised jobs where there is a limited choice, selection process serves
‘two important purposes:
(a) It ensures that the organisation gets the best among the available,
(b) It enhances the self-esteem and prestige of those selected and conveys to them the
seriousness with which the things are done in the organisation,
4, Placement And Orientation:
Placement refers to the employee occupying the position or post for which he/ she has been
selected,
Orientation means introducing the selected employee to other employees and familiarising him/
her with the rules and policies of the organisation.
The employce’s experiences during orientation and placement from his! her first impression of
the organisation. After placement, the employee is given a brief presentation about the company
and is introduced to his superiors, subordinates and colleagues. He is taken around the work
place and given the charge of the job for which he has been selected,
5, Training And Development:
Training is the process by which the aptitude, skills and abilities of employees are increased.
Development refers to the learning opportunities designed to help the employees to grow. It
involves growth of an individual in all respects
Every employee in an organisation secks not only a job but a career. He/ she must have the
opportunity to rise to the top. The organisation should provide hiny her such an opportunity by
facilitating employee learning in the in-house training centre or getting training at the training
institute. This is beneficial for the organisation also. If the employee's motivation is high, their
competencies are strengthened, they perform better and thus contribute more to organisation
effectiveness and efficiency.
By offering career advancement opportunities to its members, an organisation can attract and
retain its talented people.
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6. Performance Appraisal:
Performance appraisal means evaluating an employee's current and/ or past performance as
against certain predetermined standards. [Appraisals are used for a variety of purposes, relating to
‘taining, promotion and compensation.
7. Promotion And Career Planning:
Promotion means moving an employee to a higher job position since he is working efficiently
and his appraisal report is excellent, Sometimes a worker may not fit into his jobs in a particular
department: then he is transferred to other department to improve his efficiency. Also, some
employees fail to improve their performance and result in wastage of resources. So, they are
demoted. Thus, career planning includes promotion, transfer and demotion of personnel based on
their performance appraisal.
8. Compensatio
Compensation refers to all forms of pay or rewards going to the employees:
(a) Direct financial payments: (for example, wages, salaries, commission, incentives, bonus,
etc.)
(b) Indirect_payments (for example, vacations, employer's contributions to social security
schemes like provident fund, LIC, etc.). A major problem for an organisation is to match a
person's compensation with his contribution. It should be fair and provide incentives to
employees
6.6 ASPECTS OF STAFFING
IMP FOR MCQ'S
‘There are 3 important aspects of staffing
Applicant Organisation
(person) _ (job)
Recruitment
|») (identification & attraction) —
Selection
(assessment, evaluation & final
-__,] —
match)
Training
(acquainting & skill development)
|
Fig 6.3 Aspects Of Staffing
FACTORS INFLUENCING RECRUITMENT, SELECTION AND TRAINING: [up FOR
1. Supply and demand of specific skills in the labour market.
2, Unemployment rate McQ's
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-45-45-47} (E00) Labour market conditions
Legal and political considerations.
Company's image and policy.
Human resource planning cost.
Technological developments.
General economic environment.
eI AE
6.7 RECRUITMENT
[Recruitment has been defined as “the process of searching for prospective employees and
stimulating them to apply for jobs in an organisation.
‘Recruitment refers to the process of finding possible candidates for a job or function,
The various activities involved with the process of recruitment includes:
(a) Identification of the different sources of the labour supply
(b) Assessment of their validity
(©) Choosing the most suitable source or sources.
(d) Inviting applications from the prospective candidates, for the vacancies.
Objective of recruitment is to attract potential employees with the necessary characteristics or
qualification, in the adequate number for the jobs available,
‘The requisite positions may be filled up from within the organisation or from outside. Thus, there are
two sources of recruitment:
Sources Of Recruitment
Ee
Internal External
Fig 6.4 Sources Of Recruitment
Internal
= External
A. INTERNAL SOURCES OF RECRUITMENT:
Internal sources refer to inviting candidates from within the organisation.
The two important internal sources of recruitment:
1. |Transfers: It involves the shifting of an employee from one job to another, from one
department to another, from one shift to another.
«Transfer does not involve any change in the responsibilities, rank, rate of compensation
or status of the employee
+ Transfer is a good source of filling the vacancies with employees from over-staffed
department
+ Itis a practically horizontal movement of the employees. Shortage of suitable personnel
in one branch may be filled through transfer from the other branch or department.
* Job transfers are also helpful in avoiding termination and in removing individual
problems and grievances.
"Transfers can also be used for training of employees in learning different jobs.
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= It should be ensured that the employee to be transferred to another job is capable of
performing it,
Internal Sources Of Recruitment
er
Transfer Promotion
Fig 6.5 Internal Sources Of Recruitment
2.[ Promotion: It refers to shifting an employee to a higher position carrying higher
responsibilities, prestige, facilities and pay.
= Promotion is a vertical shifting of employees.
= This practice helps to improve the motivation, loyalty and satisfaction level of employees
= Ithas a great psychological impact over the employees because a promotion at the higher
level may Iead to a chain of promotions at lower levels in the organisation.
B. MERITS OF INTERNAL SOURCES:
Filling vacancies in higher jobs from within the organisation or through internal transfers has the
following merits:
Morale boosters
Economical
Better selection and placement
‘Merits Of Internal
Source
A tool of training
Benefit of shifting workforce
Industrial peace
Fig 6.6 Merits Of Intemal Source
1, Morale boosters: Internal recruitment helps to improve the motivation and morale of
employees. They are happy because they get the opportunity of being promoted to higher
positions
2, Economical: No time and money has to be spent on advertising vacancies or on conducting
tests and interviews. Also, people recruited from within the organisation do not need
induction training. Thus, filling of jobs intemally is cheaper as compared to getting
candidates from extemal sources
3. Better selection and placement: Internal recruitment also simplifies the process of selection
and placement, The candidates who ate already working in the enterprise can be evaluated
more accurately and economically.
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4, A tool of training: Transfer or job rotation is a tool of training the employees to prepare
them for higher jobs
5. Benefit of shifting workforce: Transfer has the benefit of shifting workforce from the
surplus departments to those where there is shortage of staff
6. Industrial peace: Industrial peace prevails in the enterprise because of promotional avenues.
C. LIMITATIONS OF INTERNAL SOURCES:
Limitations are as follows:
Stopping of infusion of new blood
Not suitable for new enterprises
1 on productivity
Limitations Of
Internal Source Li
ck of competition
Restricted choice
Employees become lethargic
Fig 6.7 Limitations Of Internal Source
Stopping of infusion of new blood: When vacancies are filled through internal promotion,
the scope for induction of fresh talent is reduced.
2. Not suitable for new enterprises: A new enterprise cannot use internal sources of
recruitment. No organisation ean fill all its vacancies from internal sources.
3. Effect on productivity: Frequent transfers of employees may often reduce the productivity
of the organisation.
4, Lack of competition: In the absence of competition from qualified candidates from outside,
employees are likely to expect automatic promotion by seniority. Thus, spirit of competition
among the employees may be tampered.
5. Restricted choice: Recruitment from within the organisation has restricted choice.
6. Employees become lethargic: The employees may become lethargic if they are sure of time
bound promotions
D. EXTERNAL SOURCES OF RECRUITM)
+ An enterprise has to tap external sources for various positions because all the vacancies
cannot be filled through internal recruitment.
+ The existing staff may be insufficient or they may not fulfill the eligibility criteria of the jobs
to be filled
= External recruitment provides wide choice and brings new blood in the organisation.
eee SSS OL UEE CYA oe) °
ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-45-45-47} (E00) E, MERITS OF EXTERNAL SOURCES:
Qualified personnel
a Wider choice
Merits Of External
Sources ol Fresh talent
Competitive spirit
Fig 6.8 Merits Of External Source
1. Qualified personnel: By using external sources of recruitment, the management can attract,
qualified and trained people to apply for vacant jobs in the organisation.
2. Wider choice: When vacancies are advertised widely, a large number of applicants from
outside the organisation apply
‘The management has a wider choice While selecting the people for employment.
3. Fresh talent: The present employees may be insufficient or they may not fulfill the
specifications of the jobs to be filled, External recruitment provide wider choice and brings
new blood in the organisation
4. Competitive spirit: If 2 company taps extemal sources, the existing staff will have to
‘compete with the outsiders. They will have to work harder to show better performance
F, LIMITATIONS OF EXTERNAL SOURCES:
Dissatisfaction among existing staff
Limitations Of Lengthy process
External Source
L | costy process
Fig 6.9 Limitations Of External Source
1. Dissatisfaction among existing staff: External recruitment may lead to dissatisfaction and
frustration among existing staff. They may feel that their chances of promotion ate reduced,
2. Lengthy process: Recruitment from external sources takes @ long time, The firm has to
notify the vacancies and wait for applications to come
3. Costly process: It is very costly to recruit staff from external sources, a lot of money is to be
spent on advertisement,
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-H5-45-47} [IZ G. VARIOUS EXTERNAL SOURCES OF RECRUITMENT:
Direct recruitment
Casual callers
‘Advertisement
Employment exchange
Placement agencies and management consultants
External Sources Of
Recruitment
‘Campus recruitment
Recommendations of employees
Labour contractors
Advertising on television
Web publishing
Fig 60 Extemal Sources Of Recruitment
1. Direct recruitment:
Under the direct recruitment, a notice is placed on the notice-board of the enterprise
specifying the details of the jobs available.
Job seekers assemble outside the premises of the organisation on the specified date and
selection is done on the spot
The practice of direct recruitment is followed usually for casual vacancies of unskilled or
semi-skilled jobs. Such workers are called as casual or “badli” workers and they are paid
remuneration on daily wage basis.
This method of recruitment is very inexpensive as it does not involve the cost of
advertising the vacancies,
It is suitable for filling casual vacancies when there is a rush of work or when some
permanent workers are absent.
2, Casual callers:
Many reputed business organisation keep a database of unsolicited applicants in their
offices
Such job-seekers can be a valuable source of manpower.
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"
PAGE NO. + A list of such job-seekers can be prepared and can be screened to fill the vacancies as
they arise.
"Major merit: It reduces the cost of recruiting workforce in comparison to other sources
3, Advertisement:
+ Advertisement in newspapers or trade and professional journals is generally used when a
wider choice is required
+ [The advantage of advertisement is that more information about the organisation and job
can be given in the advertisement.
+ Advertisement gives the management a wider range of candidates from which to choose.
+ Advertisements 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.
4, Employment exchange:
+ Employment exchanges run by the government are regarded as a good source of
recruitment for unskilled and skilled operative jobs.
+ [Employment exchanges help to match personnel demand and supply by serving as link
between job-seekers and employers,
5, Placement agencies and management consultants:
= Placement agencies provide a nationwide service in matching personnel demand and
supply,
"These agencies compile bio-data of a large number of candidates and recommend suitable
names to their clients
= Such agencies charge fee for their services.
= [Management consultancy firms help 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.
6. Campus recruitment:
= [Colleges and institutes of management and technology have become a popular source of
recruitment for technical, professional and managerial jobs,
"Many big organisations maintain a close communication with the universities, vocational
schools and management institutes to recruit qualified personnel for various jobs. This is
referred to as campus recruitment
7, 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 their background is sufficiently
known.
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-H5-45-47} [IZ 8. Labour contractors:
+ Labour contractors keep in touch with the labourers in the villages and bring them to the
places where workers are needed,
= On payment of commission, they are ready to supply required number of workers.
"Workers are recruited through labour contractors who are themselves the employees of
the organisation.
+ [The disadvantage of this system is that if the contractor himself’ decides to leave the
organisation, all the workers employed through him will follow suit.
9, Advertising on television:
"The practice of telecasting of vacant posts over television is gaining importance these
days,
1" The detailed requirements of the job and the qualities required to do it are publicised
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 job seekers and job opening.
+ Websites such as naukri.com, jobstreet.com, etc, are very commonly visited both by the
prospective employees and the organisation searching for suitable people.
H. COMPARISON OF INTERNAL AND EXTERNAL SOURCES OF RECRUITMEN’
BASIS INTERNAL SOURCES EXTERNAL SOURCES
1, Nature of process | Internal recruitment is a quick | External recruitment is a lengthy
process. It involves search of | process. It involves _ finding
candidates ftom within the | candidates from outside the
organisation, organisation.
2, Economy ‘This process is cheaper. It does not | This process is costly as vacancies
involve cost of contacting the | have to be notified in newspaper,
external sources. etc,
3. Effect on staff | The existing staff is motivated to | The existing staff feels dissatisfied if
improve their performance. external sources are used.
4, Quality of Choice of candidates is limited. The | The business can hope for talented
recruitment scope of fresh talent is diminished. | candidates from outside. This means
infusion of new blood in the
organisation.
5. Time involved __| It takes less time in filling vacancies. | They are time consuming,
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ROHINI SECTOR-7 AC {9899-94-42-48} | ROHINI SECTOR-9 DC {9599-H5-45-47} [IZ J
8 SELECTI
+ [Selection is the process of identifying and choosing the best person out of a number of
prospective candidates for a job
= Towards this purpose, the candidates are required to take a series of employment tests and
interviews.
+ At each stage many are eliminated and few move on to the next stage until the right type is
found
PROCESS OF SELECTION:
‘The important steps in the process of selection are as follows
Preliminary Screening
Selection Tests, Intelligence Tests
Employment Interview Aptitude Tests
References and background Personality Tests
Process Of checks
Selection
