UNIT 4 STAFFING

Definition of Staffing, Process of Staffing Function, Importance of Staffing, Manpower

Planning, The System Approach to Human Resource Management, Recruitment, Selection,
Performance Appraisal.

MEANING OF STAFFING
Staffing is the traditional management function of attraction and selection of the
best people and putting them on job where their talents and skills can be best
utilized, and retention of these people through incentives, job training and job
enrichment programmes, in order to achieve both individual and organisational
objectives. This emphasizes managing human and not material or financial
resources.
Staffing is the function of human relationship in the organisational structure with
competent staff. Staffing in that part of the management function which is
concerned with people at work and with their relationship within the organisation.
Staffing may be defined as “that function of management, which is concerned
with selecting, developing, maintaining and utilizing the manpower such that the
objectives of the organisation are achieved economically and effectively. The
objectives of individual employees of the organisation are accomplished to the
highest degree possible, serving in the process the objectives of the community
at large.”

Definition of Staffing:
According to Dalton E. McFarland, “The staffing function of management
consists of few interrelated activities such as planning of human resource,
recruitment, selection, placement, training and development, remuneration,
performance appraisal, promotion and transfers. All these activities make up the
elements of the process of staffing”.
According to Koontz and O’Donnell, “The managerial function of staffing
involves managing the organisation structure through proper and effective
selection, appraisal and development of personnel to fill the roles designed into
the structure.”
According to Koontz and Weihrich, “Staffing can be defined as filling and
keeping filled positions in the organisation structure.”

FEATURES OF STAFFING
• Staffing is an integral part of management: Staffing is an integral part of
management because an organization cannot exist without human resources.
• Pervasive: It is pervasive because staffing is performed by all managers at all
levels and in every department.
• Continuous Process: Staffing is a continuous process because it continues
throughout the life of the organization. It is required to meet the growing needs
of an organization.
• Deals with a human being: Staffing deals with people because it is concerned
with the people at work and their relationships.
• Wide scope: Staffing has a wide scope because it includes a series of activities,
like workforce planning, recruitment, selection, and training.
• Multiple objective activity: It is a multiple objective activity because it has to
fulfill its responsibility towards the organization, employees, and society.

IMPORTANCE OF STAFFING
1)Timely Recruitment: The most important feature of methods of staffing in
management is that it allows the timely recruitment of the right person in the right
place for the efficient working of the organization.
2)Knowing Organizational Requirement: It helps in knowing the
organizational requirements and achieving them by recruiting the exact person to
do the job.
3)Improves Productivity: It helps in recruiting the correct ones, so it helps in
improving the quality of human resources, when these people are trained
properly, they can function more efficiently. On a whole, it improves the
productivity of the organization.
4)Achieving Job Satisfaction: When the employees are trained according to the
job requirement, they can work efficiently, this will improve their morale and
give them job satisfaction.
5)Maintaining Harmony: Training the staff about how to behave with superiors,
subordinates, and colleagues helps in building a harmonious working
environment at the workplace.
PROCESS OF STAFFING
1) Estimating the Manpower Requirements: The very first steps of staffing are
to evaluate the manpower requirement of an organisation to match the job and
positions available in the organisation. It also helps in determining the skills and
qualifications required for a specific job in the organisation.
2) Recruitment of Employees: Once the requirement is evaluated, the next step
involves the searching of prospective persons that are eligible for the job and
inviting applicants to apply for the positions. In this process, the employer
advertises about the openings in the organisation through various media, which
makes it easy for the applicants to get to know about the job vacancy and the
required skills.
3) Selection of Employees: The selection process helps in screening the
employees and identifying the deserving candidate who will be suitable for a
specified job. Therefore, it can be said that the main objective of selection is to
identify the right employee for the right job.
4) Orientation and Placement: Once the right candidates are selected, the
organization makes the employees familiar with the working units and working
environments through various orientation programs. Then, the placement is done
by putting the right candidate at the right place which helps in the proper
functioning of the organisation.
5) Training and Development of employees: Once the placement is done, the
next step involves the training and development of employees. Training is an
integral part of the staffing process, and it helps the employees to develop their
skills and knowledge.
6) Performance Evaluation of employees: It is an assessment done to evaluate
the attitude, behaviour, and performance of an employee. These steps of staffing
also help in determining the success of the whole recruitment process. It gives the
management a clear picture of the success rate of the entire recruitment
procedure. This step includes elements like appraisal, promotion, and transfer.
The performance of the employee is assessed comparatively to the other
employees and also to his own previous performance. Based on these criteria, the
employee gets a hike on his pay or a promotion. Sometimes, employees are
transferred to another location of the same company and are generally attached
with a level up in his position or given certain benefits.
7) Promotion and Career planning of Employees: Promotion in simple words
means the shifting of an employee to a higher post demanding a more significant
responsibility. It not only makes the employee responsible but also keeps him
motivated to do his work efficiently. With the promotion, the monetary benefits
that the employee receives are also increased, which makes him more efficient to
complete the work on time.
8) Remuneration to Employees/ Compensation: It is the compensation given
to the employees in monetary terms in exchange for the work they do for the
organization. It is given according to work done by the employees. All
organisations need to establish wage and salary plans for their employees. There
are various ways to prepare different pay plans depending on the worth of the job.
Basically, the price of the job needs to be determined. Compensation, therefore,
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 vacation.

RECRUITMENT
Recruitment refers to the process of finding possible candidates for a job or a
function. It has been defined as Staffing ‘the process of searching for prospective
employees and stimulating them to apply for jobs in an organisation.’
Recruitment seeks to attract suitable applicants to apply for available jobs. The
various activities involved with the process of recruitment includes (a)
identification of the different sources of labour supply, (b) assessment of their
validity, (c) choosing the most suitable source or sources, and (d) inviting
applications from the prospective candidates, for the vacancies.
The requisite positions may be filled up from within the organisation or from
outside. Thus, there are two sources of recruitment – Internal and External.
Internal Sources
 (i) Transfers: It involves shifting of an employee from one job to another, one
department to another or from one shift to another, without a substantive change
in the responsibilities and status of the employee. It may lead to changes in duties
and responsibilities, working condition etc. but not necessarily salary. Transfer is
a good source of filling the vacancies with employees from overstaffed
departments. It is practically a horizontal movement of employees. Shortage of
suitable personnel in one branch may be filled through transfer from other branch
or department. At the time of transfer, it should be ensured that the employee to
be transferred to another job is capable of performing it. Transfers can also be
used for training of employees for learning different jobs.
(ii) Promotions: Business enterprises generally follow the practice of filling higher
jobs by promoting employees from lower jobs. Promotion leads to shifting an
employee to a higher position, carrying higher responsibilities, facilities, status
and pay. Promo tion is a vertical shifting of em ployees. This practice helps to
improve the motivation, loyalty and satisfaction level of employees. It has a great
psycho logical impact over the employees because a promotion at the higher level
may lead to a chain of promotions at lower levels in the organisation.
Merits of Internal Sources
(i) Employees are motivated to improve their performance. A promotion at a higher
level may lead to a chain of promotion at lower levels in the organisation.
(ii) Internal recruitment also simplifies the process of selection and placement. The
candidates that are already working in the enterprise can be evaluated more
accurately and economically. This is a more reliable way of recruitment since the
candidates are already known to the organisation
(iii) Transfer is a tool of training the employees to prepare them for higher jobs. Also
people recruited from within the organisation do not need induction training.
(iv) Transfer has the benefit of shifting workforce from the surplus departments to
those where there is shortage of staff.
(v) Filling of jobs internally is cheaper as compared to getting candidates from
external sources.
Limitations of Internal Sources
(i) When vacancies are filled through internal promotions, the scope for induction of
fresh talent is reduced.
(ii) The employees may become lethargic if they are sure of time bound promotions.
(iii) A new enterprise cannot use internal sources of recruitment. No organisation can
fill all its vacancies from internal sources.
(iv) Frequent transfers of employees may often reduce the productivity of the
organisation.
(v) It can lead to conflict if one employee is selected for promotion, while the others
are not considered.
External Sources
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.
(i) Direct Recruitment: Under the direct recruitment, a notice is placed on the
noticeboard 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 semiskilled jobs. Such workers are
known 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 any
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.
(ii) Casual Callers: Many reputed business organisations keep a database of
unsolicited applicants in their offices. Such jobseekers can be a valuable source
of man power. A list of such jobseekers can be prepared and can be screened to
fill the vacancies as they arise. The major merit of this source of recruitment is
that it reduces the cost of recruiting workforce in comparison to other sources.
(iii) Advertisement: Advertisement in 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 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.
(iv) 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. Thus, employment exchanges help to match personnel demand
and supply by serving as link between jobseekers and employers. Unfortunately,
the records of employment exchange are often not up to date and many of the
candidates referred by them may not be found suitable.
(v) Placement Agencies and Management Consultants: In technical and
professional areas, private agencies and professional bodies appear to be doing
substantive work. Placement agencies provide a nationwide service in matching
personnel demand and supply. These agencies compile 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.
(vi) 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 liaison 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.
(vii) 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.
(viii)Labour Contractors: Labour contractors maintain close contacts 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.
(ix) Advertising on Television: The practice of telecasting of vacant posts over
Television is gaining importance these days. The detailed requirements of the job
and the qualities required to do it are publicised along with the profile of the
organisation where vacancy exists,
(x) 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. In fact,
websites are very commonly visited both by the prospective employees and the
organisations searching for suitable people.
Merits of External Sources
(i) Qualified Personnel: By using external sources of recruitment, the management
can attract qualified and trained people to apply for vacant jobs in the
organisation.
(ii) 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.
(iii)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. However, it is expensive and
time consuming.
(iv) Competitive Spirit: If a company taps external sources, the extisting staff will
have to compete with the outsiders. They will work harder to show better
performance.
Limitations of External Sources
• Dissatisfaction among existing staff: External recruitment may lead to
dissatisfaction and frustration among existing employees. They may feel that their
chances of promotion are reduced.
• Lengthy process: Recruitment from external sources takes a long time. The
business has to notify the vacancies and wait for applications to initiate the
selection process.
• Costly process: It is very costly to recruit staff from external sources. A lot of
money has to be spent on advertisement and processing of applications.

Selection Process:
The selection process can be defined as shortlisting the right candidates with the
required qualifications to fill the vacancies in an organization. The process varies
from company to company hence need to be understood what type of process
suits accordingly. A well organised selection process of personnel involves the
following steps:
(i) Preliminary screening: It helps the manager to 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.
(ii) Selection tests: An employment test is a mechanism (either a paper and pencil
test or exercise) that attempts to measure certain characteristics of individuals.
These characteristics range from aptitudes, such as manual dexterity, to
intelligence, to personality, etc. Important test used for selection of employees
are Intelligence test, Aptitude test, Personality test, Trade test, Interest test.
(iii) Employment interview: Interview is a formal, in-depth conversation,
conducted to evaluate the applicant's suitability for the job. Through an interview,
an interviewer seeks to obtain maximum information about the interviewee and
the interviewee seeks information about the job and the company.
(iv) Reference and background checks: Many employers request names,
addresses and telephone numbers of references for the purpose of verifying
information and gaining additional information of an applicant. Previous
employers, known persons, teachers and university professors can act as
references.
(v) Selection decision: The final decision has to be made from among the
candidates, who pass the tests, interviews and reference checks.
(vi) Medical examination: After the selection decision and before the job offer,
the candidate is required to undergo a medical fitness test. The job offer is given
to the candidate, who is physically and mentally fit for the job.

(vii) Job offer: The next step in the selection process is issuing job offer to those
applicants, who have passed all the previous hurdles. It is made through a letter
of appointment to confirm his acceptance and communicating to him the
reporting date and time.
(viii) Contract of employment: When a candidate accepts the job offer, the
contract of employment is made, which is in a written form and includes job title,
duties, responsibilities, date when continuous employment starts and the basis for
calculating service, rates of pay, allowances, hours of work, leave rules, sickness,
grievance procedure, etc.

Difference between Recruitment and Selection:

Sr. Recruitment Selection
No.
1. A process of actively searching A process of choosing suitable
and hiring applicants for a job applicants from the shortlisted
role is known as recruitment. candidates is known as selection.
2. It is an activity to boost the It is an activity to reduce the
candidate pool. candidate pool until we find the
ideal candidate.
3. It allows the candidates to apply This process allows the HR to
for a vacant place. proceed further with suitable
applicants, and reject the
remaining
4. In recruitment, we advertise the Selection is the process in which
job role and encourage the we finally appoint the candidate
candidates to apply. for the particular job role.
5. It is the first step towards the It is the second step towards the
hiring process. hiring process.
 6. This process is economical. The process is comparatively
expensive.
7. There is no contractual relation Selection involves a contractual
in the recruitment process. relation between the organisation
and employee.

Performance Appraisal:
The term “performance appraisal” refers to the regular review of an employee’s
job performance and overall contribution to a company. Also known as an annual
review, employee appraisal, performance review or evaluation, a performance
appraisal evaluates an employee’s skills, achievements, and growth, or lack
thereof.
• The basic purpose of performance appraisal is to identify employees worth
and contribution to the company. Important factors include – attendance,
efficiency, attitude, quality of work, amount of work are just a few
important factors.
• It helps the managers place the right employees for the right jobs,
depending on their skills. Often, employees are often curious to know
about their performance details and compare it with their fellow colleagues
and how they can improve upon it. So, every company needs a good
performance appraisal system.
Manpower Planning
Manpower planning involves reviewing current manpower resources, forecasting
future requirements and availability, and taking steps to ensure that the supply of
people and skills meets demand.
Manpower planning is the quantitative and qualitative measurement of the
manpower that is required in an organisation. It involves evaluation and creation
of the manpower inventory and also to develop the necessary talents among the
employees that are selected for obtaining promotion.
Manpower Planning is the process of systematically forecasting the future
demand and supply for employees and the deployment of their skills within the
strategic objectives of the organization. It is the process by which Management
determines how the management should move from its current manpower to its
desired manpower utilization.
System Approach to Human Resource
Management
A Systematic Approach to HRM is a structured, methodical way of managing
human resources that views an organization as a system with interconnected
parts. This approach emphasizes the alignment of HR functions and processes
with organizational goals and considers HR activities as part of a larger
framework designed to enhance organizational efficiency and effectiveness. In
this approach, HRM is seen as a coordinated system where all elements—such as
recruitment, training, compensation, and performance management—are
interrelated and must be managed together to create synergy.
Key Elements of the Systematic Approach:
1. Interconnected HR Functions: All HR activities are interdependent, meaning
that success in one area (e.g., recruitment) can impact others (e.g., training and
performance).
2. Alignment with Organizational Goals: HRM activities are designed and
executed with the organization’s mission, vision, and objectives in mind.
3. Continuous Feedback and Improvement: Feedback mechanisms are
embedded in HR processes to enable ongoing improvement.
4. Employee-Centric Processes: Recognizes that employees are key assets and
emphasizes processes that support employee development and satisfaction.
5. Data-Driven Decision-Making: Utilizes HR metrics and data analysis to
inform decisions and improve HR practices systematically.