UNIT-8 STAFFING

Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and
effective selection, appraisal and development of the personnels to fill the roles assigned to the
employers/workforce.

According to Theo Haimann, “Staffing pertains to recruitment, selection, development and

compensation of subordinates.”

Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the most important

mangerial act along with planning, organizing, directing and controlling. The operations of
these four functions depend upon the manpower which is available through staffing function.
2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all
types of concerns where business activities are carried out.
3. Staffing is a continuous activity- This is because staffing function continues throughout the
life of an organization due to the transfers and promotions that take place.
4. The basis of staffing function is efficient management of personnels- Human resources
can be efficiently managed by a system or proper procedure, that is, recruitment, selection,
placement, training and development, providing remuneration, etc.
5. Staffing helps in placing right men at the right job. It can be done effectively through
proper recruitment procedures and then finally selecting the most suitable candidate as per the
job requirements.
6. Staffing is performed by all managers depending upon the nature of business, size of the
company, qualifications and skills of managers,etc. In small companies, the top management
generally performs this function. In medium and small scale enterprise, it is performed
especially by the personnel department of that concern.

Staffing Process - Steps involved in Staffing

1. Manpower requirements- The very first step in staffing is to plan the manpower inventory
required by a concern in order to match them with the job requirements and demands.
Therefore, it involves forecasting and determining the future manpower needs of the concern.
2. Recruitment- Once the requirements are notified, the concern invites and solicits
applications according to the invitations made to the desirable candidates.
3. Selection- This is the screening step of staffing in which the solicited applications are
screened out and suitable candidates are appointed as per the requirements.
4. Orientation and Placement- Once screening takes place, the appointed candidates are made
familiar to the work units and work environment through the orientation programmes.
placement takes place by putting right man on the right job.
5. Training and Development- Training is a part of incentives given to the workers in order to
develop and grow them within the concern. Training is generally given according to the
nature of activities and scope of expansion in it. Along with it, the workers are developed by
providing them extra benefits of indepth knowledge of their functional areas. Development
also includes giving them key and important jobsas a test or examination in order to analyse
their performances.
6. Remuneration- It is a kind of compensation provided monetarily to the employees for their
work performances. This is given according to the nature of job- skilled or unskilled, physical
or mental, etc. Remuneration forms an important monetary incentive for the employees.
7. Performance Evaluation- In order to keep a track or record of the behaviour, attitudes as
well as opinions of the workers towards their jobs. For this regular assessment is done to
 evaluate and supervise different work units in a concern. It is basically concerning to know
the development cycle and growth patterns of the employeesin a concern.
8. Promotion and transfer- Promotion is said to be a non- monetary incentive in which the
worker is shifted from a higher job demanding bigger responsibilities as well as shifting the
workers and transferring them to different work units and branches of the same organization.

Selection
Meaning and Process
Employee Selection is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people. Effective selection can be
done only when there is effective matching. By selecting best candidate for the required job, the
organization will get quality performance of employees. Moreover, organization will face less of
absenteeism and employee turnover problems. By selecting right candidate for the required job,
organization will also save time and money. Proper screening of candidates takes place during
selection procedure. All the potential candidates who apply for the given job are tested.

But selection must be differentiated from recruitment, though these are two phases of employment
process. Recruitment is considered to be a positive process as it motivates more of candidates to apply
for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative
process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing
process. Selection involves choosing the best candidate with best abilities, skills and knowledge for
the required job.

The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligiblity criteria laid down by the organization. The skills, academic and family
background, competencies and interests of the candidate are examined during preliminary
interview. Preliminary interviews are less formalized and planned than the final interviews.
The candidates are given a brief up about the company and the job profile; and it is also
examined how much the candidate knows about the company. Preliminary interviews are also
called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to fill
application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude test,
intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess
the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required job
or not. But such interviews consume time and money both. Moreover the competencies of the
candidate cannot be judged. Such interviews may be biased at times. Such interviews should
be conducted properly. No distractions should be there in room. There should be an honest
communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential
employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.
Recruitment of Candidates: Meaning and Sources

Meaning of Recruitment:
Recruitment means discovering applicants for the present or future jobs in an enterprise. It may be
described as an activity that aims to bring the job-seeker (applicant) and the job- giver (employer) in
contact with one-another.

Recruitment is the process of identifying the sources for prospective candidates and to stimulate them
to apply for the job. It is the positive process of employment. It increases the ratio of applicants and
number of posts vacant and thus provides an opportunity to the management to select the suitable
person.

The term Recruitment generally means obtaining fresh supplies but on the context of personnel
management it is an activity of discovering job seeker (Recruitee) for the present and future needs of
the organisation.

According to Filipps, “Recruitment is the process of searching for prospective employees and

stimulating them to apply for jobs in the organisation.”
Recruitment is a Dual Affair:
It takes two to complete the recruitment process—the job giver (the person who in recruiting) and the
job seeker (the person who is to be recruited).

Sources of Recruitment:
The sources of recruitment may be classified into two main categories:
(1) Internal sources

(2) External sources.

1. Internal Sources:
Internal source is the most obvious source of recruitment. Under this source, the human/personnel
needs are filled through transfers, promotions and present employees.

Thus, internal sources of recruitment are listed below:

i. Transfers,

ii. Promotions,

iii. Demotion, and 

iv. Present employees.

i. Transfers:
“A transfer involves the shifting of an employee from one job to another without special
reference to change in responsibility or compensation”. Transfer of an employee from one place to
another does not ordinarily result in any change in the nature of duties or emoluments. It also does not
alter the number and kind of employees working in the enterprise.
Advantages of Transfers:
1. A good transfer policy can be very encouraging and motivating to employees.

2. It may result in increasing the productivity and effectiveness of the organization.

3. It helps to improve skills of employees.

4. This reinforces a sense of loyalty among employees and provides them an opportunity for
advancement.

5. It leads to generate job satisfaction and better superior- subordinate relations.

6. This also helps the management to be assumed of the quality of performance of employees.

ii. Promotions:
A “promotion” means appointing an employee to a position of greater responsibility or authority. It
is yet another internal source to meet personnel demand. While “promotion” brings about a change
in the nature of duties and authority of the employee concerned as also his emoluments, it does not
alter the number and kinds of employees of the enterprise.
Promotion may be based on seniority or merit of employees.

Advantages of seniority-based promotion:

1. It is simple to operate.

2. It creates a feeling of discipline and respect for senior persons.

3. It keeps the senior workers satisfied due to recognition earned by seniority.

4. It enables workers to know about their future job prospects.

Disadvantages of seniority based promotion:

1. It does not recognize merit and competence.

2. It fails to motivate competent workers.

3. Competent employees, who are junior in terms of stay in the organization, may leave for better
prospects.

Advantages of Merit-based promotion:

1. It recognizes and rewards merit and competence.

2. It motivates competent employees to greater effort.

3. It enables the organization to retain competent employees who might otherwise leave the
organization for better prospects.

4. It leads to increase in productivity.

Disadvantages of Merit-based promotion:

1. It is not easy to devise a system to determine competence in an objective manner.

2. It may cause frustration among senior employees which may lead to indiscipline.

3. Workers are not sure about who might be picked up for promotion.

iii. Demotion:
In the business under deflationary pressure, employees may be demoted back to their original jobs.
Demotion shocks the morale and self-respect of employees, so it should be avoided.

Demotion is generally made when the promotion is conditional, or the court has disapproved
promotion or vacancy is for the time being caused by the leave of a senior employee.

The major drawback of internal sources of recruitment leads obviously to external sources, when
employees are selected from outside the enterprise through a prescribed selection procedure.

iv. Present Employees:

It is an internal source of recruitment of personnel. In the event of any vacancy, employees of the
enterprise may be asked to recommend their friends and relatives for employment. It will not only
keep the employees happy and in high morale, but also ensure recruitment of competent and sincere
persons.

This is because ordinarily, an employee will only recommend those persons in whose capacity for
hand and sincere work he has full confidence. For if the person recommended by him does not
perform well, he may be held responsible.
2. External Sources:
It is always not possible to recruit the workers from within, especially vacancies at lowest level or
recruitment at the time of expansion of the organisation or where job specifications cannot be met by
the present employees, the employer has to go to external sources of manpower supply.

Most common used source are as follows:

a. Advertisement

b. Employment exchange.

c. Recruitment at the gate.

d. Recommendation of present employees.

e. Intermediaries.

f. Colleges, universities and technical institutions.

g. Employment consultants.

h. Management consultants.

i. Unsolicited applications.

j. Professional bodies.

a. Advertisement:
Recruitment through advertising in local or national newspapers or trade or professional journals is
one of the most common methods of attracting personnel of all types—skilled workers, clerical staff
and higher staff.

b. Employment Exchange:
Employment exchanges are regarded as good source of recruitment for unskilled, skilled or semi-
skilled operative jobs. The job seekers get their names registered with employment exchanges
managed and operated by the Central and State governments. The employers notify the vacancies to
be filled in by them to such exchanges and the exchanges refer the names of prospective candidates to
them.

c. Recruitment at the Gate:

The foreman or the departmental manager scrutinizes in a general way, the people who are available
at the gate and recruit the necessary number. It is a good method to recruit unskilled workers to fill up
casual vacancies.

d. Recommendation of Present Employees:

When present employees are asked to recommend new hires, a type of preliminary screening takes
place, the present employees knows both the company and his acquaintance and presumably would
attempt to please both.

It is generally concluded that the referring employees are better at judging the degree of fit between
organization and employee than were the company interviewers. This method may be well developed
in the field of lower executive posts.

e. Intermediaries:
Intermediaries are generally known as jobbers, mukaddams, chaudhary or contractors. Management
generally consults these intermediaries at the time of their requirements. This system of recruitment
has led many abuses. It is most current in Indian industries.

f. Colleges, Universities and Technical Institutions:

This method is mainly followed in western countries where there is a shortage of highly qualified
administrative and technical personnel. In times of scarcity, the tendency is to obtain the graduates
without experience but with potentialities.

g. Employment Agencies:
Employment agencies may be public or private. These agencies provide more screening facilities.
Generally such agencies are specialized in the supply of particular categories of employees.

h. Management Consultants:
It depends upon the personnel policy of an undertaking whether to make use of outside experts in
personnel matters or not.

i. Unsolicited Applications:
An organization of repute draws a steam of unsolicited applications at the company’s office. The
applications are examined of and on whenever needed to locate suitable candidates for the job.

j. Professional Bodies:
Some professional institutions like Institute of Chartered Accountants, Institute of Costs Works
Accounts (ICWA). Institute of Company Secretary etc. maintain a register of qualified persons from
which they recommend the names of the job seekers to the employers when asked for.
Training of Employees - Need and Importance of Training
Training of employees takes place after orientation takes place. Training is the process of enhancing
the skills, capabilities and knowledge of employees for doing a particular job. Training process
moulds the thinking of employees and leads to quality performance of employees. It is continuous and
never ending in nature.

Importance of Training

Training is crucial for organizational development and success. It is fruitful to both employers and
employees of an organization. An employee will become more efficient and productive if he is trained
well.

Training is given on four basic grounds:

1. New candidates who join an organization are given training. This training familiarize them
with the organizational mission, vision, rules and regulations and the working conditions.
2. The existing employees are trained to refresh and enhance their knowledge.
3. If any updations and amendments take place in technology, training is given to cope up with
those changes. For instance, purchasing a new equipment, changes in technique of
production, computer implantment. The employees are trained about use of new equipments
and work methods.
4. When promotion and career growth becomes important. Training is given so that employees
are prepared to share the responsibilities of the higher level job.

The benefits of training can be summed up as:

1. Improves morale of employees- Training helps the employee to get job security and job
satisfaction. The more satisfied the employee is and the greater is his morale, the more he will
contribute to organizational success and the lesser will be employee absenteeism and
turnover.
2. Less supervision- A well trained employee will be well acquainted with the job and will need
less of supervision. Thus, there will be less wastage of time and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills
required for doing a particular job. The more trained an employee is, the less are the chances
of committing accidents in job and the more proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during training. They
become more eligible for promotion. They become an asset for the organization.
5. Increased productivity- Training improves efficiency and productivity of employees. Well
trained employees show both quantity and quality performance. There is less wastage of time,
money and resources if employees are properly trained.

Ways/Methods of Training

Training is generally imparted in two ways:

1. On the job training- On the job training methods are those which are given to the employees
within the everyday working of a concern. It is a simple and cost-effective training method.
The inproficient as well as semi- proficient employees can be well trained by using such
training method. The employees are trained in actual working scenario. The motto of such
 training is “learning by doing.” Instances of such on-job training methods are job-rotation,
coaching, temporary promotions, etc.
2. Off the job training- Off the job training methods are those in which training is provided
away from the actual working condition. It is generally used in case of new employees.
Instances of off the job training methods are workshops, seminars, conferences, etc. Such
method is costly and is effective if and only if large number of employees have to be trained
within a short time period. Off the job training is also called as vestibule training,i.e., the
employees are trained in a separate area( may be a hall, entrance, reception area,etc. known as
a vestibule) where the actual working conditions are duplicated.