STAFFING

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CHAPTER 5

• STAFFING

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Introduction

• The success of any organisation doesnt depend
  upon the physical and financial resources but it
  depends upon the utilization of these resources
  by human resources. So, hardworking efficient
  people are the most important asset of an
  organisation for its success. Staffing function
  is concerned with the bringing right and
  efficient people in the organisation

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Meaning

• Staffing is a managerial function of filling and
  keeping filled positions in the organisation
  structure which is achieved by identifying number
  of employees required followed by recruitment,
  selection, placement, promotion, appraisal and
  development of personnel.

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Need and Importance of staffing

• Staffing function gives more emphasis on the
  human elements such as attitude, aptitude,
  commitment, loyalty while selecting the right
  person for the right job.
• Researches on various aspects of staffing such as
  recruitment, selection, compensation, incentives,
  training and development are utilized for better
  results.
• Staffing function has been assumed on greater
  importance these days because of rapid
  development of technology, increasing size of
  organisation and complicated behaviour of human
  beings.
• It ensures the optimum utilization of human
  resources by way of avoiding surplus of workforce
  and prevents under utilization of personnel.

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Need and Importance of staffing

• It avoids disruption of work by indicating in
  advance the shortage of personnel.
• This function improves the job satisfaction and
  morale of the employees through objective
  performance appraisal and fair rewarding system.
• All other resources will become waste if there is
  no right kind of personnel working in the
  organisation

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Staffing as part of Human Resource Management

• In small organisation, no doubt, the number of
  personnel will be less as well as the volume of
  staffing activities and its complexity will be
  limited to certain extend (i.e. confined to
  recruitment, selection, compensation and
  welfare). So, it will be possible for all the
  line mangers to perform all duties related to
  employees in small organisations.

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Staffing as part of Human Resource Management

• But, as organisations grow into large size and
  number of persons employed increases, the duties
  related to human resources will become more
  complex and the volume of human resource
  activities will extended to large extend such as
  Estimation of human resource requirement,
  Recruitment, Selection, Training, Development,
  Maintenance, Compensation, Incentive plans,
  Protecting health and physical conditions,
  Liaison with government and trade unions,
  Providing social security, welfare activities,
  Review and audit of personnel policies etc. So,
  separate department called as human resource
  department consisting of specialized experts is
  very much required in large organisation.

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Evolution of Human Resource Management

• The evolution of human resource management can be
  understood from the following points.
• Due to the emergence of industrial revolution,
  trade union activities became very active.
• The trade union activities forced the management
  to appoint a separate person, called as Labour
  welfare officer, who will act as a link between
  employer and employees and his role was limited
  up to the welfare of employees only.
• Then, due to the introduction of factory system,
  large number of labourers was employed under one
  roof which further forced the management to
  appoint one more person known as personnel
  officer who was given responsibility of
  Recruitment, Selection and Placement of persons

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Evolution of Human Resource Management

• Then, as a final stage, due to the importance of
  human relation approach and frequent changes
  taking place in the various factors of business
  environment, the employees had to be trained,
  developed and updated to latest knowledge in
  order to take the challenges of the organisation.
• So, this requirement of human relation approach
  led to replacement of personnel manager to human
  resource manager who has to be assisted by
  various experts in different fields such as
  Sociology, Psychology, Economy, Anthropology,
  Technology etc. All were collectively grouped
  under a department called as Human Resource
  Management

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Brief explanation of various stages in staffing
process

• 1. Estimating the manpower requirements-
• For the purpose of understanding the manpower
  requirements, the organisation has to do two
  analysis such as workload analysis and workforce
  analysis.
• Workload analysis means the assessment of
  number and type of human resources necessary for
  the performance of various jobs and
  accomplishment of objectives.
• Workforce analysis would reveal the number and
  type of human resource presently available within
  the organisation as well as helps to understand
  whether the organisation is overstaffed or
  understaffed. A situation of overstaffing will
  make the organisation to for employee removal or
  transfer whereas a situation of understaffing
  would necessitates the organisation to start the
  recruitment process

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Brief explanation of various stages in staffing
process

• Here, the important thing is that before going
  for recruitment stage, organisation has to
  develop the two important statements mentioned
  below
• Job Description which consists of the nature and
  characteristics of the various jobs.
• Desirable profile of the occupant of the job
  which consists of desirable qualifications,
  experiences, personality etc.

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2. Recruitment

• Recruitment is defined as the process of
  searching for prospective employees and
  stimulating them to apply for jobs in the
  organisation.
• The organisation has to disclose the contents
  of job description and desirable profile of the
  occupant developed in the previous stage in the
  advertisement called situation vacant. The
  advertisement may be displayed in the Factory
  gate or in print media or flashed in electronic
  media. Both internal sources and external sources
  of recruitment should be explored.

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3. Selection

• Selection is the process of choosing from among
  the pool of prospective job candidates developed
  at the stage of recruitment.
• Selection serves two important purposes
  mentioned below
• Organisation gets best among the available
• Enhances the self-esteem and prestige of those
  selected.
• Selection involves the series of tests and
  interviews, employment contract which is a
  statement containing the terms and conditions of
  employment.

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4. Placement and Orientation

• Placement means putting the selected candidates
  on right job. It is the process of matching the
  candidates with the most suitable jobs. The
  placement is done after considering various
  factors such as skills required, location of job,
  employees knowledge, marital status, home town,
  interest etc.

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Placement and orientation

• Orientation means introducing and familiarizing
  newly appointed candidates through following
  manners
• Brief presentation about the history of the
  company
• Introduction of superiors, subordinates and his
  colleagues
• Taken around the work place
• Familiarizing the policies, rules and regulations
• Various facilities available.

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5. Training and Development

• Training means act of improving knowledge and
  skills for doing a specific job. The employees
  are imparted training to improve their
  performance and to update their knowledge to
  match the requirement of external environment.
• Development means growth of a person in all
  respects. It is a process by which managers and
  executives acquire not only skills and competence
  of present job but also the capabilities for
  future tasks of increasing difficulty and scope

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THREE ASPECTS OF STAFFING

• Following three aspects of staffing will be
  discussed in details
• Recruitment
• Selection
• Training and Development

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1. RECRUITMENT

• Meaning and Definition-
• Recruitment means inducing or attracting more
  and more candidates to apply for vacant job
  positions in the organisation.
• Recruitment has been defined as the process of
  searching for prospective employees and
  stimulating them to apply for jobs in
  organisation.

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Process of Recruitment

• The various activities involved in the process of
  recruitment are given below
• Identification of the different sources of labour
  supply
• Assessment of their validity
• Choosing the most suitable source or sources
• Inviting applications from the prospective
  candidates

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Sources of Recruitment

• There are two important sources of recruitment
• Internal source of recruitment
• External source of recruitment

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1. Internal source of recruitment

• It means the filling up of vacant job positions
  of the organisation by using the existing
  employees of the organisation and no outsiders
  are permitted.
• Two methods of internal source of recruitment
  have been discussed below

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(a) Transfer

• Transfer involves shifting of an employee from
  one job to another or from one department to
  another or from one shift to another without any
  substantive change in the status,
  responsibilities and salary. Mainly the place of
  working is changed. E.g. Transfer of
  clerk from Accounts department to Purchase
  department.
• Transfer can be used in the organisation for
  following purposes
• Shortage of suitable personnel in one branch or
  department may be filled through transfer from
  other branch or department
• To avoid the termination of employees as an act
  of punishment
• To remove individual problems and grievances
• To train the employees for learning different
  jobs

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(b) Promotion

• Promotion refers to the shifting of employee from
  the lower job position to the higher job position
  carrying higher responsibilities, increasing
  authority level, status, prestige, pay and
  facilities.
• The main objective of promotion is to improve
  the motivation, loyalty and satisfaction level of
  the employees.

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Merits of Internal source of recruitment

• A promotion at higher level may lead to a chain
  of promotion at lower levels. This motivates the
  employees, which lead to increase the commitment
  level, loyalty and satisfaction of employees.
• It simplifies the process of selection and
  placement
• It is a more reliable way of recruitment since
  the candidates are already known to the
  organisation.
• People recruited within organisation do not need
  orientation program.
• Shortage of personnel can be adjusted by
  transferring personnel from surplus department.
• It is more economical and fewer amounts spent in
  training as well

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Demerits of Internal source of recruitment

• The scope of induction of fresh talent and
  infusion of new blood will be reduced.
• Frequent transfers may reduce the productivity of
  employees
• Employees may become lethargic if they are sure
  of time bound promotion.
• A new enterprise can not use the internal source
  and no organisation can fill all its vacancies
  from internal sources.
• There will be only limited choice

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2. External sources of recruitment

• When the candidates from outside the organisation
  are invited to fill the vacant job position, then
  it is known as external recruitment
• Common methods of external sources of recruitment
  is discussed in the following slides

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1. Direct Recruitment

• Sometimes the organisations paste notice
  specifying the details of jobs available at the
  gate of their office, factory or workshop. The
  people who are interested in those jobs walk in
  for interview. This method is inexpensive and
  suitable for unskilled or semi skilled job
  positions, e.g. Sweeper, peon, casual workers
  etc. Generally, they are paid remuneration on
  daily wage basis

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2. Casual callers

• Generally, large organisations maintain an
  application file consisting of unsolicited
  applications which the job seekers leave with
  reception as well as the applications of suitable
  candidates who were not selected in previous
  years selection process. This application file
  is considered as waiting list. Whenever there is
  a job vacancy, the suitable candidates from the
  waiting list are called It is also an inexpensive

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3. Advertisement

• The most common and popular method of external
  recruitment is advertising in newspapers and
  trade and professional journals. Through
  advertisement, more information about the
  organisation and job can be given. It gives the
  management wider range of candidates.
• For the job of an accountant, the advertisement
  can be given in chartered accountant journal and
  for unskilled and lower rank positions, the
  advertisement can be given in local or regional
  newspapers. But, for senior positions and skilled
  jobs, advertisement is given in national level
  reputed newspapers

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4. Employment exchanges

• Employment exchanges act as middlemen between job
  seekers and the organisation having vacant job
  positions. The job seekers leave their Bio-Data
  with the employment exchanges and when
  organisation approach employment exchanges,
  suitable candidates are sent. Thus, employment
  exchanges help to match personnel demand and
  supply. Government employment exchanges charge no
  fees whereas private employment exchanges charge
  commission.

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5. Placement agencies and management consultants

• In technical and professional areas, private
  agencies and professional bodies appears to be
  doing remarkable work on selecting suitable
  personnel from external sources. These agencies
  compile Bio-Data of a large number of candidates
  and provide the organisation specialized and
  efficient people who can occupy managerial,
  technical and professional job positions. These
  agencies are having many experts who are
  specialized in manpower requirements and charge
  fees or commission for their services

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6. Campus recruitment

• Many big organisations maintain a close liaison
  with the universities, colleges, management
  institutes and vocational schools to recruit
  qualified personnel for technical, professional
  and managerial jobs. Senior managers of
  organisations visit various professional
  institutions to prefer fresh graduates, because
  they can be molded according to the requirement
  of the organisation. E.g. MBAs, Computer
  programmers, Engineers are generally selected in
  campus recruitment

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7. Recommendations of employees

• Many firms encourage their employees to recommend
  the names of their relatives, friends and other
  known people to fill the vacant job positions.
  The organisations prefer such recommendations by
  trusting the goodwill of the present employees.
  The organisations can catch hold of existing
  employees if there is any problem with the new
  employee recommended by him.

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8. Labour Contractors

• The contractors are the people who keep in touch
  with the labour in villages and rural areas and
  whenever there is vacancy or requirement for
  labour in factory or in construction site, they
  bring the labourers from villages as well as from
  outskirts of city areas and supply them to
  businessmen. The labour contractors charge
  commission for the same. This method is suitable
  only for unskilled workers and labourers.

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9. Web publishing

• In internet, there are certain websites
  specifically designed and dedicated for the
  purpose of providing information about both job
  seekers and job openings in various
  organisations. These websites can be visited by
  job seekers as well as by the companies. E.g.
  Naukri.com, Monster.com, Jobstreet.com etc.

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Merits of External source of recruitment

• With external recruitment fresh and new talent
  come to the organisation.
• Through external recruitment the organisation
  gets wider choice.
• By using external recruitment the management can
  get qualified and trained persons.
• Through external recruitment when outsiders join
  the organisation, this develops a competitive
  spirit in existing employees of organisation.

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Demerits of external recruitment

• The morale of existing employees goes down or
  falls.
• the new employees may not adjust in the rules and
  regulations of the organisation which means more
  chances of turnovers
• It is expensive as to invite the outsider to
  apply for the job, companies have to bear heavy
  burden of advertising.
• External recruitment takes long time to select
  suitable personnel

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2. SELECTION

• Meaning-
• Selection can be defined as discovering most
  promising and most suitable candidate to fill up
  the vacant job position among the pool of
  prospective job candidates developed at the stage
  of recruitment.

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Process of selection

• In selection, the number of rejected applicants
  is generally more than the selected candidates
  that are why selection is considered as a
  negative process. The important steps in the
  process of selection are as follows

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1. Preliminary Screening

• The selection process begins with screening and
  detailed investigation of the applicants. While
  scrutinizing the applications, the managers
  compare the qualifications and capabilities
  specified in application form with the
  requirement of vacant job position. The
  applications proving the match between both only
  will be considered for the next stage in
  selection and the remaining unsuitable
  applications will be rejected.

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2. Selection Tests

• The types of test to be conducted depend on the
  requirement of the organization. The common types
  of tests conducted by the organizations are given
  below
• (a) Intelligence test This is one of the
  important psychological test used to measure the
  level of IQ, persons learning ability or the
  ability to make decisions and judgments, persons
  alertness in terms of reasoning, memory,
  comprehension etc.
• (b) Aptitude test These tests are designed to
  measure the potential of individuals to acquire
  new skills, capacity to develop in future.
• (c) Personality test This test provides clues
  to a persons emotional balance, his/her
  reactions, maturity and value system etc. It has
  to be designed and implemented with utmost care.
• (d) Interest test Interest test is used to know
  the pattern of interest or involvement of a
  person in a particular kind of work.

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3. Employment interview

• Interview is a formal, in-depth conversation
  conducted to evaluate the applicants suitability
  for the job. There are some qualities which can
  be judged only through a face-to face talk with
  candidates. The interviewer is to seek
  information about the interviewee by asking job
  related and general questions

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4. Reference and Background checks

• Many employers request names, addresses and
  telephone numbers of references of at least two
  responsible persons for the purpose of verifying
  information and gaining additional information on
  an applicant. Previous employer, University
  professors, known persons can act in references

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5. Selection decision

• The personnel department will send the list of
  the selected candidates who have passed tests,
  interviews and reference checks. But, the final
  selection has to be made by the concerned
  departmental manager. Because, it is he who is
  responsible for the performance of the new
  employee.

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6. Medical Examination

• After the selection decision, the candidate is
  required to undergo medical fitness test
  conducted by the panel of doctors prescribed by
  the organization. If the result of medical
  fitness is positive, then only job offer will be
  given.

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7. Job Offer

• Job offer is made through a letter of
  appointment. Such a letter generally contains
  date by which the appointee must report on duty.
  The appointee must be given reasonable time for
  reporting.

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8. Contract of Employment

• It is a written document consisting of job title,
  duties, responsibilities, date when continuous
  employment starts and the basis of calculating
  service, rates of pay, allowances, working hours,
  leave rules, grievance procedures, disciplinary
  procedures etc. It has to be signed by the
  employee

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4. TRAINING AND DEVELOPMENT

• Meaning of Training-
• Training is the process of improving the job
  knowledge and skills of employees so as to enable
  them to perform well. It is an organized activity
  wherein people acquire knowledge and skills for
  doing a specific job

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Meaning of Development-

• Development is the process by which managers and
  executives acquire not only skills and competence
  in their present jobs but also capabilities for
  future tasks of increasing difficulty and scope.
  It refers to overall growth of the employees.

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Distinction between Training and Development

• TRAINING
• 1. Teaching technical skill only
• 2. Suitable technical staff
• 3. Development of skills already possessed by the
  employees
• 4. Focuses on present requirement of organization
• 5. Superior takes initiative

• DEVELOPMENT
• Teaching technical, human and conceptual skills.
• Suitable for managerial staff
• Development of hidden qualities of employees
• Focuses on future requirement of organization.
• Individual takes initiative

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Benefits of Training and Development

• Training is systematic learning always better
  than hit and trial methods which lead to wastage
  of efforts and money.
• It enhances employee productivity both in terms
  of quantity and quality, leading higher profits.
• It equips the future manager who can take over in
  case of emergency
• It increases employee confidence and reduces
  absenteeism and employee turnover
• It helps in obtaining effective response to fast
  changing environment.
• Improved skills and knowledge lead to better
  career of the individual.

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Benefits of Training and Development

• Increased performance by the individual helps him
  to earn more.
• It makes the employee more efficient to handle
  machines which will reduce the accidents.
• It increases the satisfaction and morale of
  employees

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Training methods

• The methods of training are broadly categorized
  into two groups
• 1. On the job training methods
• 2. Off the job training methods

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1. On the job training methods

• This is a method of learning by doing and
  suitable only for technical jobs. The advantage
  of this method is that the employees can
  understand practical problems. The disadvantage
  is that it may lead to wastage of resources. This
  method should not be recommended in case the
  training involves the handling of very expensive
  machines.
• Types of on the job training methods-
• The various types of on the job training
  methods are discussed below

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(a) Apprenticeship programmes

• In this method, there will be a master worker
  (trainer) who guides the workers on the skills of
  the job and demonstrates the job also. The
  trainees will observe the demonstration carefully
  and learning the skills gradually. After getting
  the confidence, the trainees start taking up the
  job and the master worker becomes the observer.
  When trainee becomes perfect, the master worker
  leaves by handing over the full charge of job
  position to the trainee workers. The period of
  training may vary from 2 to 5 years.

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(b) Coaching

• Under this method, the superior or senior manager
  will take the role of coach. The superior and
  trainees together will set mutually agreed goals.
  Then, the superior suggests the trainees how to
  achieve the goals by giving guidance and
  instructions. The performance of the trainees
  will be reviewed periodically by the superior.
  The superior will suggest required changes in
  behavior and performance of the trainees in order
  to overcome their weaknesses and makes their
  strength more strong

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(c) Internship training

• The educational institutions and the corporate
  sectors enter into an agreement according to
  which the institutions send their candidates to
  various companies so that they can practice the
  theoretical knowledge acquired by them. The
  organizations will get people with fresh ideas
  and latest knowledge and the companies have to
  pay very less amount of stipend.

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(d) Job rotation

• Under this method, the employees are shifted from
  one job to another job for short intervals in
  order to make them aware of the requirements of
  all the job positions. Further, they may be even
  shifted from one department to another department
  so that trainees get broader understanding of all
  parts of the business and how organization as a
  whole functions. This method allows the trainees
  to interact with other employees facilitating
  future cooperation. Further, the organization
  finds it easier at the time of promotions,
  replacements or transfers.

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2. Off the job training methods

• These methods are used away from the work place.
  It involves learning before doing. The various
  methods of off the job training methods are
  discussed below

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(a) Class room lectures and conferences

• It is a highly structured way to convey a message
  or specific information, rules, procedures or
  methods. The use of audio-visuals or
  demonstrations can make a formal classroom
  presentation more interesting

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(b) Films

• Films can provide information and demonstrate
  skills that are not easily represented by the
  other techniques. It is generally used in
  conjunction with conference discussions.

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(c) Case study

• Under this method, managers discuss real problems
  that they have faced and trainees are asked to
  study, analyze the problems and develop
  alternative solutions, select what they believe
  to be the best solution. The case study provides
  the bridge between the theoretical knowledge and
  its practical implications

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(d) Computer modeling

• It stimulates the work environment by programming
  a computer to imitate some of the realities of
  the job and allows learning to take place without
  the risk or high costs that would be incurred if
  a mistake were made in real life situation

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(e) Vestibule training

• Vestibule school means duplicate model of
  organization. When the expensive and delicate
  machineries are involved then employers avoid
  using on the job methods of training. A dummy
  model of machinery is prepared to give training
  instead of using original machinery. Actual work
  situations are created and employees use the same
  materials and equipments.

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(f) Programmed instructions

• Under this method, a learning package is prepared
  to give general instructions and specific skills.
  The information is broken into sequence of
  meaningful units.