STAFFING

Staffing Function of Management

Staffing, a managerial function of management, involves manning the organization
structure through proper and effective selection, appraisal and development of
workers/ personnel to fill the manpower needs of an organization.

According to McFarland,“Staffing is the function by which managers build an organization

through the recruitment, selection, and development of individuals as capable employees.”

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

compensation of subordinates.”

According to Koontz, O’Donnell and Heinz Weihrich,“The management function of

staffing is defined as filling position in the organization structure through identifying
workforce requirements, inventorying the people available, recruitment, selection,
placement, promotion, appraisal, compensation, and training of needed people.

Nature of Staffing Function

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

important managerial activity 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 managers

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 personnel- 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.
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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.

Process of Staffing Function

The essential steps involved in process of staffing function of management are:

1. Manpower Planning
2. Recruitment
3. Selection
4. Placement
5. Training
6. Development
7. Promotion
8. Transfer
9. Appraisal
10. Determination of Remuneration

1. Manpower Planning
Manpower planning may be regarded as the quantitative and qualitative measurement
of labor force required in an enterprise. It involves in creating and evaluating the
manpower inventory and to develop required talents among the employees selected
for promotion advancement.

2. Recruitment
Recruitment is a positive process of searching for prospective employees and
stimulating them to apply for the jobs in the organization. In other words,
recruitment stands for discovering the source from where potential employees will
be selected. The scientific recruitment leads to greater productivity, better wages,
higher morale, reduction in labor turnover and better reputation of the concern.

3. Selection
Selection is process of eliminating (among all the candidates considered for possible
employment) those who appear unpromising. The purpose of selection process is to
determine whether a candidate is suitable for employment in the organization or not.
The chief aim of the process of selection is choosing right type of
candidates to fill in various positions in the organization. Selection process requires
exactness. A well planned selection procedure is of utmost importance for every
enterprise.

4. Placement
Placement means putting the person on the job for which he is selected. It includes
the introduction of the employee with the job.
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5. Training
After selection an employee, the most important and established part of the
personnel program is to impart training to the new comer. With the rapid
technological changes, the need for training employees is being increasingly
recognized so as to keep the employees in touch with the new developments.

Every concern must have a systematic training program otherwise employees will try
to learn the job by trial and error which can prove to be a very costly method.

6. Development
A sound staffing policy calls for the introduction of a system of planned promotion in
every organization. If employees are not at all having suitable opportunities for their
development and promotion, they get frustrated.

Each and every employee should be given to understand the various promotion
routes/possibilities and the attendant facilities that are made available in the form
of training programs, orientation schemes, etc., to achieve the same.

7. Promotion
Promotion implies upgrading of an employee to a higher post involving increase in
rank, prestige or status and responsibilities. Generally, increase in pay accompanies
promotion but it is not essential ingredient.

8. Transfer
Transfer implies movement of an employee from one job to another without any
increase in pay, status or responsibilities. Usually transfer takes place between jobs
paying approximately the same salaries.

9. Appraisal
Appraisal of employees reveals as to how efficiently the subordinate is performing
his job and also to know his aptitudes and other qualities necessary for performing
the job assigned to him. The qualities of employees that are appraised through
performance appraisal are ability to do work, spirit of cooperation, managerial
ability, self-confidence, initiative, intelligence etc.

The main objective of performance appraisal is to improve the efficiency of a concern

by attempting to mobilize the best possible efforts from individuals employed in it.

10. Determination of Remuneration

Fixation of remuneration is the most difficult and complex function of the personnel
department because there are no definite or exact means to determine the correct
wages.

Job Evaluation is the only systematic technique to determine the worth of the job
but much remains to be done in this regard. As wages constitute major part of the
cost of production, every concern must consider this aspect very seriously.
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Sources of Recruitment

The different sources of recruitment are classified into two categories, viz.,

2.1 Internal - sources of recruitment are from within the organization.

2.2 External - sources of recruitment are from outside the organization.

Internal Sources of Recruitment

The internal sources of recruitment are:-

1. Promotions - Promotion means to give a higher position, status, salary and

responsibility to the employee. So, the vacancy can be filled by promoting a
suitable candidate from the same organization.

2. Transfers - Transfer means a change in the place of employment without any

change in the position, status, salary and responsibility of the employee. So, the
vacancy can be filled by transferring a suitable candidate from the same
organization.
3. Internal Advertisements - Here, the vacancy is advertised within the
organization. The existing employees are asked to apply for the vacancy. So,
recruitment is done from within the organization.

4. Retired Managers - Sometimes, retired managers may be recalled for a short

period. This is done when the organization cannot find a suitable candidate.

5. Recall from Long Leave - The organization may recall a manager who has gone
on a long leave. This is done when the organization faces a problem which can
only be solved by that particular manager. After he solves the problem, his
leave is extended.

Merits of Internal Sources

The benefits / advantages / merits of using internal sources of recruitment:-

1. It is time saving, economical, simple and reliable.

2. There is no need of induction training because the candidate already knows
everything about the organization, the work, the employee, the rules and
regulations, etc.
3. It motivates the employees of work hard in order to get higher jobs in the same
organization.
4. It increases the morale of the employees and it improves the relations in the
organization.
5. It reduce executive turnover.
6. It develops loyalty and a sense of responsibility.
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Demerits of Internal Sources

The limitations / demerits of using internal sources of recruitment:-

1. It prevents new blood from entering the organization. New blood brings
innovative ideas, fresh thinking and dynamism into the organization.
2. It has limited scope because it is not possible to fill up all types of vacancies
from within the organization.
3. The position of the person who is promoted or transferred will be vacant.
4. There may be bias or partiality in promoting or transferring persons from within
the organization.
5. Those who are not promoted will be unhappy.
6. The right person may be promoted or transferred only if proper confidential
reports of all employees are maintained. This involves a lot of time, money and
energy.

External Sources of Recruitment

The external sources of recruitment are:

1. Management Consultants - Management consultants are used for selecting

higher-level staff. They act as a representative of the employer. They make all
the necessary arrangements for recruitment and selection. In return for their
services, they take a service charge or commission.

2. Public Advertisements - The Personnel department of a company advertises the

vacancy in newspapers, the internet, etc. This advertisement gives information
about the company, the job and the required qualities of the candidate. It
invites applications from suitable candidates. This source is the most popular
source of recruitment. This is because it gives a very wide choice. However, it is
very costly and time consuming.

3. Campus Recruitment - The organization conducts interviews in the campuses.

Final year students, who are soon to graduate, are interviewed. Suitable
candidates are selected by the organization based on their academic record,
communication skills, intelligence, etc. This source is used for recruiting
qualified, trained but inexperienced candidates.

4. Recommendations - The organization may also recruit candidates based on the

recommendations received from existing managers or from sister companies.

5. Deputation Personnel - The organization may also recruit candidates who are
sent on deputation by the Government or Financial institutions or by holding or
subsidiary companies.
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Advantages of External Sources

The benefits / merits / advantages of using external sources of recruitment-

1. It encourages young blood with new ideas to enter the organization.

2. It offers wide scope for selection. This is because a large number of suitable
candidates will come for the selection process.
3. There are less chances of bias or partiality.
4. Here there is no need to maintain confidential records.

Limitations of External Sources

The demerits / limitations of using external sources of recruitment-

1. It is very costly. This is because advertisements, test, medical examination etc.,

has to be conducted.
2. It is very time consuming. This is because the selection process is very lengthy.
3. It may not develop loyalty among the existing managers.
4. The existing managers may leave the organization if outsiders are given higher
post

Employee Selection 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 eligibility criteria laid down by the organization. The skills,
academic and family background, competencies and interests of the candidate
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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 passed the preliminary interview are
required to fill-out application form. 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.

The difference between Recruitment and Selection

BASIS RECRUITMENT SELECTION

Meaning It is an activity of establishing It is a process of picking up

contact between employers and more competent and suitable
applicants employees

Objective It encourages large number of It attempts at rejecting

candidates for the job. unsuitable candidates.

Process It is just a simple process It is a complicated process

Hurdles The candidates have not to cross Many hurdles have to be

over many hurdles crossed

Approach It is a positive approach It is a negative approach

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Sequence It proceeds selection It follows recruitment

Economy It is an economical method It is an expensive method

Time Less time is required More time is required

consuming

Orientation and Placement

Once the candidates are selected for the required job, they have to be fitted as per
the qualifications. Placement is said to be the process of fitting the selected person
at the right job or place, i.e. fitting square pegs in square holes and round pegs in
round holes. Once he is fitted into the job, he is given the activities he has to perform
and also told about his duties. The freshly-appointed candidates are then given
orientation in order to familiarize and introduce the company to him. Generally the
information given during the orientation program includes:

Employee’s layout
Type of organizational structure
Departmental goals
Organizational layout
General rules and regulations
Standing Orders
Grievance system or procedure

In short, during orientation, employees are made aware about the mission and vision of
the organization, the nature of operation of the organization, policies and programs of
the organization. The main aim of conducting orientation is to build up confidence,
morale and trust of the employee in the new organization, so that he becomes a
productive and an efficient employee of the organization and contributes to the
organizational success.
The nature of Orientation program varies with the organizational size, i.e., the smaller
the organization the more informal is the Orientation and the larger the organization
more formalized is the Orientation program. Proper Placement of employees will lower
the chances of employee’s absenteeism. The employees will be more satisfied and
contended with their work.
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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 molds 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 updating 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 installation. The employees
are trained about use of new equipment 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.
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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 in proficient 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.

Employee Remuneration

Employee Remuneration refers to the reward or compensation given to the

employees for their work performances. Remuneration provides basic attraction to
a employee to perform job efficiently and effectively. Remuneration leads to
employee motivation. Salaries constitutes an important source of income for
employees and determine their standard of living. Salaries effect the employees
productivity and work performance. Thus the amount and method of remuneration
are very important for both management and employees.
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Methods of Employee Remuneration

1. Time Rate Method - Under time rate system, remuneration is directly linked
with the time spent or devoted by an employee on the job. The employees are
paid a fixed pre-decided amount hourly, daily, weekly or monthly irrespective
of their output. It is a very simple method of remuneration. It leads to
minimum wastage of resources and lesser chances of accidents. Time Rate
method leads to quality output and this method is very beneficial to new
employees as they can learn their work without any reduction in their salaries.
This method encourages employees’ unity as employees of a particular
group/cadre get equal salaries.

There are some drawbacks of Time Rate Method, such as, it leads to tight
supervision, indefinite employee cost, lesser efficiency of employees as there
is no distinction made between efficient and inefficient employees, and lesser
morale of employees. Time rate system is more suitable where the work is non-
repetitive in nature and emphasis is more on quality output rather than quantity
output.

2. Piece Rate Method - It is a method of compensation in which remuneration is

paid on the basis of units or pieces produced by an employee. In this system
emphasis is more on quantity output rather than quality output. Under this
system the determination of employee cost per unit is not difficult because
salaries differ with output. There is less supervision required under this method
and hence the per unit cost of production is low. This system improves the
morale of the employees as the salaries are directly related with their work
efforts. There is greater work-efficiency in this method.

There are some drawbacks of this method, such as, it is not easily computable,
leads to deterioration in work quality, wastage of resources, lesser unity of
employees, higher cost of production and insecurity among the employees. Piece
rate system is more suitable where the nature of work is repetitive and quantity
is emphasized more than quality.

In conclusion, staffing is the most vital asset in an organization. Without which,

Organization cannot move ahead in the competitive world. It can be equated with HR
management as both have same sort of objectives. Staffing is an open system approach.
It is carried out within the enterprise but is also linked to external environment.