STAFFING

Concept of Staffing

 Staffing is the function of management which takes care of the manpower requirement of
an organisation.
 In the complex business environment where rapid continuous changes take place in technology,
market preferences and size of organisations, it becomes essentially critical to find appropriate and
suitable personnel for the job.
 Thus, proper staffing is important for an organisation.

Importance of Staffing for an Organisation

1) Finding competent personnel: Staffing function of management helps in finding and selecting the
most suitable personnel for a job.
2) Improves efficiency: By ensuring that the right personnel are assigned the right job, it helps in
improving efficiency and performance in the organisation.

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3) Growth and survival of the organisation: Proper staffing ensures that the most competent
and efficient person is employed for the task. In this way, it helps in the survival and overall growth
of an organisation.
4) Optimum utilisation of human resources: It helps in avoiding the situations of both shortage of
personnel and over manning. In this way, it helps in the optimum utilisation of human resources.
5) Job Satisfaction: Proper staffing function ensures that employees get fair compensation rewards.
This helps in boosting self-confidence and provides employees with job satisfaction.

Staffing and Human Resource Management

 Concerned with development and management of human resources in an organisation
 Human resource management is a broad concept
 Activities forming part of Human Resource Management:
o Searching for qualified people, i.e. recruitment
o Analysing and collecting information about jobs for preparing job descriptions
o Developing compensation and incentive plans
o Training and development of employees
o Maintaining labour relations and union management relations
o Handling grievances and complaints
o Providing for social security and welfare of employees
o Defending the company in lawsuits and avoiding legal complications

Process of Staffing

 Staffing involves various stages such as recruitment, selection, placement, orientation and training.
With the staffing function, the human element of an organisation is managed.
 The overall efficiency of the organisation is determined based on how well this function is performed.
 Various organisations develop a separate department known as the Human Resources Department
specifically for this function.
 Various activities and tasks related to staffing are performed by specialised managers in
this department. In addition, they work towards labour grievances.
 Staffing need not be separately performed by a particular department; rather, it is to be performed
by every manager.
 Being an integral part of management, managers must watch if there is any vacant job position or if
additional personnel are required.
 As managers directly deal with the work, they know what qualifications, skills and aptitude
are required for a specific job.
 They can perform the staffing function more efficiently and are able to select the right source of
recruitment and carry on the selection process.
 Other important aspects of staffing are appraisal, promotions and career planning.

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Estimating
Manpower
Requirements

Compensation Recruitment

Process
Promotion & Selection
Career Planning of
Staffing

Performance Placement
Appraisal
& Orientation

Training &
Development

Process of Staffing
1) Estimation of  The number of persons and the kind of persons required in the
required manpower organisation must be estimated.
 Involves the following two steps:

 Two-step analysis helps in determining whether there is any overstaffing

or understaffing in the organisation. Based on this, the staffing process
is carried out.
 For example, in a situation of understaffing, additional personnel would
be required, and on the other hand, in a situation of overstaffing, some
existing personnel may be removed.
2) Recruitment  Refers to searching for prospective candidates and convincing them to
apply for job vacancies.

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 For the recruitment process, internal sources (transfers and promotions)
and external sources (advertising and placement agencies) can be
used.
 With this process, a pool of prospective candidates is created which then
forms the basis of further selecting suitable candidates.
3) Selection  Process of choosing from among the pool of the prospective
job candidates developed at the stage of recruitment.

 The procedure comprises a series of tests and interviews.

 Candidates who are able to successfully clear the process are selected,
while the others are rejected.
 Emphasis must be laid on a rigorous selection process such that the most
competent candidates get selected, and thereby the working efficiency
of the organisation improves.
 A person who successfully undergoes the interview and passes the tests
is given the employment contract.
4) Placement and  Placement refers to occupying of the post by the candidate for which he
orientation has been selected.
 Orientation refers to the introduction of the selected new employee to
his/her superiors, subordinates and colleagues, and familiarising him/her
with the rules and policies of the organisation.
5) Training and  Training is concerned with upgradation of the knowledge and skills of
development employees so that their ability to perform can be enhanced.
 Development is the process of learning and growth so that skills and
competencies can be acquired to do higher level jobs.
6) Performance  Performance appraisal refers to the evaluation of performance of
appraisal employees against some standards.
 Standards are informed to employees well in advance.
 Superiors prepare a feedback report based on the
performance appraisal.
7) Promotion and  Promotion refers to placement of an employee at a higher job position
career planning with higher responsibility, facilities, status and pay.
 Promotion is on the basis of the feedback report of employees.

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8) Compensation Compensation refers to the price paid for the job and includes pay,
rewards and other incentives and indirect payments which are given
to employees.
 Direct payments: Wages, salaries etc.
 Indirect payments: Medical facility, insurance etc.

Recruitment
Recruitment is the process of searching for prospective candidates and convincing them to apply for job
vacancies.

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Important Sources of Recruitment

A. Internal Sources
Internal sources of recruitment are the ones where job vacancies are filled from within the
organisation. It can take the following forms:
1) Transfers  Employees are shifted from one job to another, one department to
the needed department or from one shift to another.
 There is no significant change in the responsibility, job position or
salary of transferred employees.
 It is a horizontal process of movement of employees.

2) Promotions  Job vacancies in higher positions are filled by promoting

employees from lower level job positions.
 Promoted employees are offered greater responsibilities, higher job
position and more authority.
 It is a vertical process as employees are shifted vertically.

B. External Sources
External sources of recruitment are the ones where job vacancies are filled from sources outside the
organisation. It can take the following forms:
1) Direct Recruitment  An organisation places a notice on the notice board specifying the
details about job vacancies such as the number of vacancies, required
qualifications of candidates and date of interview.
 Interested candidates read this information and attend the
interviews; selection of these candidates is done on the spot.
 This practice is undertaken especially for unskilled or semi-
skilled workers.
 These workers are paid remuneration on a daily wage basis.
 It is an inexpensive method of recruitment.
3) Casual Callers  Recruitment is from a list of applications from job seekers
maintained along with their contact information.
 It is a cheap source of recruiting as compared to other sources.
4) Advertisement  Advertisements are placed in newspapers or trade journals when
there is a requirement of a wider choice.

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 It is helpful in filling vacancies for senior positions in an organisation.
 It may bring a wide range of responses.
5) Employment  Employment exchanges serve as a link between job seekers
Exchange and employers.
 Exchanges are generally run by the government and are used for
recruitment of unskilled and skilled job positions.
 Many a times, records of the employment exchange are not
updated and candidates referred by them are unsuitable.
6) Placement Agencies  Private agencies and professionals match personnel demand
and supply.
 They have a database of a large number of job seekers which
is compiled, and suitable candidates are recommended to clients.
 It helps to recruit all kinds of persons, and in return, a nominal fee is
charged for the services provided to clients.

7) Campus Recruitment  Recruitment of fresh graduates directly from colleges and universities
is now a popular source of recruitment.
 Mostly big organisations hire from colleges and various engineering
and management institutions.
8) Recommendation of  Applications from friends and relatives of current employees prove to
Employees be a beneficial source of recruitment.
 It is considered a good and relevant source of recruitment as the
background of candidates is already known.
9) Labour Contractors  Labour contractors maintain close contacts with labourers and
can provide a workforce at short notice.
 Generally semi-skilled or low-skilled labour is hired by
labour contractors.
 Labour contractors are employees of an organisation.
 Workers will leave if the contractor himself leaves the organisation.
10)Advertising on TV  Vacant posts are advertised on television.
 Complete details including requirements, eligibility, last date, etc. are
displayed in the advertisement.
11)Web Publishing  Many websites provide information related to various job
openings and job seekers.
 Job seekers post their relevant details along with their updated
resume on the website.

Internal Sources
Merits Demerits
Promotion of one will lead to a chain of Scope for induction of fresh talent is reduced
promotions which always inspires employees to
work with commitment

Filling jobs internally is cheaper than hiring Time bound promotions may make employees
fresh candidates from outside lethargic

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Candidates are already known to the organisation New organisations always need
and evaluation of candidates can be done internal sources to fill various job positions
accurately and easily

Internal transfers help prepare a person for higher Since everyone is already well familiar with
positions. Employees are already familiar with the the skills and knowledge of others, there is very
working pattern of an organisation; hence, less scope of competition
no induction training is required
Shifting workforce from surplus departments Too many transfers reduce productivity due to
to departments having shortage of workforce change in pattern, workflow and non-familiarity
with the type of work allotted

External Sources
Merits Demerits
Helps in finding qualified and trained personnel Dissatisfaction among existing staff as
it
reduces chances of promotions of existing staff

Wider choice for selection Costly process as money is spent on

advertisement of job vacancy and further
processing applications

Brings fresh talent in the organisation Lengthy process as time is consumed in

notifying job vacancy, inviting applications,
screening till the time final selection is made

Selection
Selection refers to the process of screening and selecting a suitable candidate from a pool of
prospective candidates.

Process of Selection

Preliminary Selection tests Personal Background

screening interview checks

Selection Medical Employment

decisions examination Job offer contract

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Process of Selection
Preliminary screening  Helps in eliminating candidates who do not fulfil the basic criteria
and qualifications required for the job.
 Candidates whose applications are selected are called for
preliminary interviews.

Selection tests  A written test is conducted by the organisation to assess the

practical knowledge of candidates.
 Important tests used for selection of employees:
o Intelligence test: Measures intelligence quotient of a candidate
o Aptitude test: Examines the potential of the individual
to develop new skills
o Personality test: Tests overall personality of an individual
o Trade test: Measures existing skills of a candidate
o Interest test: Finds out the particular interests of the individual
Personal interview  Involves in-depth conversation between the candidate and an
interviewer to evaluate a candidate’s overall suitability for the
job position.
 Candidates get a chance to have clarity regarding their salary,
working conditions etc.
Background checks  Information given by the candidate is verified by asking
the candidate to provide a number of references.
 Teachers, previous employers and university professors are suitable
references.

Selection decision Final selection by choosing the candidates who passed the test,
interview and reference checks.
Medical examination To check the fitness level and health of candidates, and the job offer is
given only after candidates are declared fit.
Job offer A job offer is made through a letter of appointment.
The letter mentions the job profile, rules and regulations, date of joining,
time of reporting etc.
Contract of employment The selected candidate is given the employment contract, which
mentions the terms and conditions of employment.

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Differences between recruitment and selection:

Basis of Difference Recruitment Selection

Meaning Process of searching suitable Screening and selecting a suitable
candidates and convincing them to
candidate from a pool of prospective
apply for job vacancies. candidates.
Sequence Second step in the process of Third step after recruitment in the
staffing. process of staffing.
Employment contract No employment contract is given to
Candidates who pass the selection
candidates who are gathered
process are offered an
under recruitment. employment contract which contains
details such as date of joining and
terms and conditions etc.
Characteristic A large number of persons are Only the appropriate
attracted to the job. suitable candidates are selected,
while the
rest are rejected.

Training
Training refers to enhancing the skills and abilities necessary for a specific job. In other words,
it attempts at improving the aptitude and knowledge of employees according to the requirements of
the specific job.

Training imparts the following benefits to the employee and to the organisation:

Benefits to the Employee

1) Better career opportunities: Training helps in improving the knowledge of the employee which in
turn helps in improving his career prospects.
2) Earn more: By helping the individual to improve their knowledge and skills, it improves the earning
prospects of employees.
3) Less accident prone: With proper training, employees become more efficient in handling complex
machines. This helps in reducing the chances of an accident.
4) Self-confidence: By increasing knowledge, skills and aptitude of employees, training helps in
boosting self-confidence, which in turn helps in improving job satisfaction.

Benefits to the Organisation

1) Less wastage: With training, employees learn to work systematically without the need of any hit and
trial method. This helps in reducing the wastage of time and money.
2) Higher profits: By developing the skills of individuals, it makes them more efficient and productive.
With increase in overall productivity, the profits of the organisation rise.
3) Managerial efficiency: Training imparts self-confidence among employees to face new challenges.
It helps them to better deal with varied situations and problems.
4) Reduced absenteeism: Effective training helps in boosting the morale and self-confidence of
employees, which in turn helps in reducing absenteeism and employee turnover in the organisation.
5) Adapting to changes: Training equips the trainee to respond and adopt to the changing economic
and technological environment.

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On-Job Methods (Employees Off-the-Job Methods (Employees

learn about skills while working) learn about skills while away from
the work place)

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On the Job Methods
1) Apprenticeship  Workers are made to work under a master worker who provides
them the required skills for the job.
 After a pre-defined amount of time, workers are then gradually
shifted to work themselves.
2) Coaching  Trainees are made to work under the guidance of a coach.
 Both work towards achieving the common goal as set on the basis
of mutual understanding.
 Typically, the aim of coaching is to train employees towards
reaching a higher position at work.
3) Internship training  Business corporations select some students from the educational
institutions to work with them as interns for a certain period.
4) Job rotation  A trainee is shifted from one department to another or from one job
to another.
 Done in order to provide the trainee an overview
and understanding of all the departments of the organisation.
 Helps in promotions, replacements or transfers of employees.
Off the Job Methods
1) Classroom lectures  Used to convey specific information, rules, procedures
/Conferences or methods.
 Audio-visual demonstrations or presentations are used to address
trainees in the classroom.
2) Films  Short films or documentaries are shown to trainees to provide useful
information or to demonstrate the skills which are difficult
to convey through classroom lectures.
3) Case study  Taken from actual experiences of an organisation.
 Presented to trainees to analyse the causes of problems, to
determine the probable alternative solutions and to find the
best possible solutions.
4) Computer modelling  Real-life situations are imitated through computer programmes.
 Helps trainees learn various situations in a risk-free environment
at minimum cost.
5) Vestibule training  Dummy models of the actual working environment are created.
 Trainees are then trained to work on dummy machines.
 When they acquire the required expertise, they are shifted to work
on the actual machines at the actual workplace.
6) Programmed  Information is divided into smaller, meaningful units and arranged in
instruction a sequence such that the trainee can answer questions one
by one.
 It helps the trainee to acquire specific skills or general
knowledge.

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