CHAPTER FIVE
STAFFING FUNCTION
BY: Berhanu T.
Learning Objectives
• To define staffing function
• To discuss the importance of staffing
• To explain the staffing process
• To discuss HR planning
• To describe Recruitment and Selection
• To explain Placement and Socialization
• To discuss Training and Development, compensation,
Separation
Introduction
• Staffing links people and the processes.
• People (human power) is the most important resources of
the organization than any other resources. Without
manpower other economic resources (money, machine,
land) are worthless.
• People create an organization’s intellectual capital—
which makes the organization unique and separates it
from its competition.
Cont’d
• Without dedicated, knowledgeable, and motivated employees,
the best-laid plans cannot bear fruit.
• Empowered people working in a diverse and open climate
based on mutual trust and respect can make bad plans work
and good plans better.
• Therefore, once the managers determine organizational
structure, they have to find the qualified individuals for each
level on the structure.
• This can be done with the staffing function
Definition of Staffing
Staffing is an efforts designed to attract, hire, train,
develop, reward, and retain the people needed to
accomplish an organization’s goals and promote
job satisfaction.
• It is getting good people and retaining them in the
organization.
Staffing …
According to Koontz and O’ Donnel
“The managerial functions of staffing involves manning
the organizational structure through proper and effective
selection, appraisal and development of personnel to fill
the roles designed in to the structure” .
The major objective of staffing function is enabling an
organization to attract, to maintain, and to utilize
efficient and effective workforce.
Factors Affecting Staffing
• External Factors Affecting Staffing
i. Nature of rivalry for Human Resources
• Unskilled workers against supply of highly qualified people.
ii. Legal factors
Child labor is prohibited.
Provision are there relating to reservations for physically handicapped
people.
iii. Socio-cultural factors
Employment of women for job involving physical exertion is usually
avoided
iv. External Influences
Employers have to face pressures from political parties or politicians as
new recruitment.
Concept of Employment to “Sons of the soil” is getting popular in all
countries.
Internal Factors Affecting
Staffing
Organizational Image
Past Practices
Size of the Organization
Organizational Business Plan
The Staffing Process
Human Resource Planning
Recruitment and selection
Induction & orientation (socialization)
Training and development
Performance appraisal (PA)
Compensation
Employment decision
Step 1: Manpower Planning (HRP)
The managers should under take four activities related to
human resource planning;
Is the starting point in the process of staff procurement;
and refers to the determination in advance the number &
quality of people to be employed.
Itinvolves;
Assessment of current HR of the organization
Future assessment: estimates & HR forecasting.
Development of future program design future program to
fill the gap.
Career development
It prepares management to deal with dynamic changes
that takes place overtime in organizations.
Step 2: Recruitment and Selection
• Recruitment is Process of locating, identifying,
and attracting capable candidates for the current or
future needs.
• In the recruitment, a pool of eligible and interested
candidates is created for the selection of most
suitable candidates.
Sources of Recruitment
• Two broad categories of sources of recruitment
Internal
Sources
Sources of
Recruitment
External
Sources
Internal Sources
Promotion: is the movement of an employee from a lower level
position to a higher level position with increase in salary
Transfer: is a lateral movement within the same grade, from one
job to another.
Job posting: It is a method of publicizing job openings on bulletin
boards, electronic media and similar outlets by a company.
Employee referrals: It is a kind of recommendation from a current
employee regarding a job applicant.
Lay-off : Lay-off refers to the temporary separation of employee
from the organization. Recalling the lay off candidates to fill the
vacant position
External Sources
Campus Recruitment
Press Advertisement.
Recruitment through Management, Consultants
and Private Employment Exchanges.
Job portals ([Link], [Link])
University or institute campus
Public Employment exchange
Alternatives to recruiting
• Overtime: payment for works done beyond daily work
hours
• Subcontracting: allowing an outside specialist agency
to undertake part of the work, to mutual advantage.
• Temporary employees: Employees hired for a
limited time to perform a specific job
• Employee leasing: Hiring permanent employees of
another company who possess certain specialized skills on
lease basis to meet short-term requirements
• Outsourcing: giving activities relating to recruitment,
training, payroll processing and etc to other outside
agency.
Methods of Recruitment
1. Direct method of recruitment: Recruiters directly
contact the prospective employees. E.g. contact graduating
students
2. Indirect method: Organizations encourage prospective
employees to apply for vacancies through advertisements
in newspapers, magazines, journals, etc..
3. Third party method: Private employment agencies, those
carry out recruitment process of an organization for a fee.
SELECTION
• Selection is the process of identifying and
choosing those applicants who can successfully
perform a job from the available candidates.
• Selection is the process of deciding which
candidate out of the pool of applicants
possesses the qualifications for the job to be filled.
Selection Process
• The goal of selection is to eliminate unqualified candidates through use of
the screening devices.
–Application Form
–Preliminary Interview
–Testing (if appropriate)
–In-Depth Interview(s)
–Reference Checks
–Physical Exams
–Offer of Employment
Step 3: Induction & Orientation
(Socialization)
• Induction & orientation have to do with familiarizing the new
employee with the organization.
• Induction: Refers to the process of familiarizing a new
employee with the overall organizational environment
through the provision of adequate information.
• Helps to bring about change in new employee’s expectation,
behavior, and attitude in order to assure the best match with
organizational interest.
Orientation
• Is the process of introducing new employees to
the organization by explaining their duties,
helping them meet their coworkers, and
acclimating them to their work environment.
The purpose of induction and orientation is;
To build up confidence, morale and trust of the employee in
the new organization
Step 4: Training and Development
• “Training is a short term process utilizing a systematic
and organized procedure by which non managerial
personnel learn technical knowledge and skills for a
definite purpose”.
• “Development is a long term educational process
utilizing a systematic and organized procedure by which
managerial personnel learn conceptual and theoretical
knowledge for general purpose”.
Purposes of Training
• To increase knowledge and skills,
• To increase motivation to succeed,
• To improve chances for advancement,
• To improve morale and the sense of competence
and pride in performance,
• To increase quality and productivity.
Step 5: Performance appraisal (PA) or
Management
• PA is a formal, structured comparison between
employee performance and established quantity
and quality standards.
• Includes establishing performance standards and
reviewing the performance
• Means to ensure organizational goals are being met.
Use of Performance Appraisals
1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs
8. Feedback & Grievances
Step 6: Compensation
• All forms of financial return, and non-financial
Incentives that employees receive as part of their
employment relationship.
• Purposes of Compensation
– To attract,
– To help develop, and
Cash, Bonuses, Insurance,
– To retain talented performers Vacation, Holidays
Perks, Recognition
Step 7: Employment Decisions
• Employment decisions include decisions about
promotions, transfers, demotions, and separations
(voluntary or involuntary).
Promotions: are job changes that lead to higher pay
and greater authority that reward devoted and outstanding
effort.
• Offered to employees exhibiting superior performance
and going beyond that which is expected.
• Transfer: is moving an employee to a job with
similar levels of status, compensation, and
responsibility.
• Job rotation is one way of exposing people to
different aspects of an operation and helping
them see the big corporate picture.
• Demotions: is a reassignment to a lower rank
in an organization’s hierarchy.
• A reduction in an employee’s status, pay, and
responsibility.
• Separation: is the departure of an employee from
an organization, may be voluntary or involuntary.
• Voluntary separations include resignations and
retirements.
• Involuntary separations include layoffs and firings.
– Layoffs: reduction of the number of employees for
temporary period.
– Firings: reduction of the number of employees.
THANK YOU
