CLASS XII COMPILED BY SUDHIR SINHA

BUSINESS STUDIES

CHAPTER 6: STAFFING

Meaning of Staffing

In the simplest terms, staffing is ‘putting people to jobs’. It begins with workforce planning
and includes different other function like recruitment, selection, training, development,
promotion, compensation and performance appraisal of work force. In other words,
staffing is that part of the process of management which is concerned with obtaining,
utilising and maintaining a satisfactory and satisfied work force.

Importance of Staffing

Proper staffing ensures the following benefits to the organisation:

(i) Helps in discovering and obtaining competent personnel for various jobs;
(ii) Makes for higher performance, by putting right person on the right job;
(iii) Ensures the continuous survival and growth of the enterprise through the
succession planning for managers;
(iv) Helps to ensure optimum utilisation of the human resources. By avoiding
overmanning, it prevents under-utilisation of personnel and high labour costs. At
the same time it avoids disruption of work by indicating in advance the
shortages of personnel; and
(v) Improves job satisfaction and morale of employees through objective
assessment and fair rewarding of their contribution.

STAFFING PROCESS

1. Estimating Manpower Requirement: It involves the following:

(a) Making inventory of current human resources in terms of qualification, training
& skills.
(b) Assessing future human resource needs of all departments.
(c) Developing a programme to provide the human resources. Job Analysis is
an intensive way of finding details related to all jobs.

2. Recruitment: It refers to identification of the sources of manpower availability and

making efforts to secure applicants for the various job positions in an organization.

3. Selection: It is the process of choosing and appointing the right candidates for various
jobs in an organization through various exams, tests &interviews.

4. Placement and Orientation: When a new employee reports for duty, he is to be

placed on the job for which he is best suited. Placement is very important process as
it can ensure “Right person for right job”. Orientation/Induction is concerned with the
process of introducing a new employee to the organization. The new employees are
familiarized with their units, supervisors and fellow employees. They are also to be
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BUSINESS STUDIES

informed about working hours, procedure for availing leave, medical facilities, history
and geography of organization and rules/regulations relating to their wages etc.

5. Training and Development: Systematic training helps in increasing the skills and
knowledge of employees in doing their jobs through various methods. Development
involves growth of an employee in all respects. It is the process by which the employees
acquire skills and competence to do their present jobs and increase their capabilities for
higher jobs in future.

6. Performance Appraisal: It is concerned with rating or evaluating the performance of

employees. Transfers and promotions of the staff are based on performance appraisal.
.

RECRUITMENT
Recruitment may be defined as the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.

Sources of Recruitment:
(A) Internal Sources
(B) External Sources

Internal Sources
Internal sources refer to inviting candidates from within the organization. Following
are important sources of internal recruitment:

1. Transfers: It involves the shifting of an employee from one job to another, from one
department to another or from one shift to another shift.

2. Promotions: It refers to shifting an employee to a higher position carrying higher

responsibilities, prestige, facilities and pay.
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BUSINESS STUDIES

3. Lay-Off: To recall the temporary worker for work is called Lay-Off, who were
temporarily separated from organization due to lack of work.

Advantages of Internal Sources Recruitment:

(1) Employees are motivated to improve their performance.

(2) Internal recruitment also simplifies the process of selection & placement.
(3) No wastage of time on the employee training and development.
(4) Filling of jobs internally is cheaper.

Limitation of Internal Sources

(1) The scope for induction of fresh talent is reduced.

(2) The employee may become lethargic.
(3) The spirit of competition among the employees may be hampered.
(4) Frequent transfers of employees may often reduce the productivity of the organization.

EXTERNAL SOURCES OF RECRUITMENT

The commonly used external sources of recruitment are discussed below:

(i) Direct Recruitment:Under the direct recruitment, a notice is placed on the notice-
board of the enterprise specifying the details of the jobs available. Jobseekers assemble
outside the premises of the organisation on the specified date and selection is done on the
spot. The practice of direct recruitment is followed usually for casual vacancies of unskilled
or semi-skilled jobs. Such workers are known as casual or ‘badli’ workers and they are paid
remuneration on daily wage basis.

(ii)Casual Callers:Many reputed business organisations keep a database of unsolicited

applicants in their offices. Such job-seekers can be a valuable source of manpower. A list of
such job-seekers can be prepared and can be screened to fill the vacancies as they arise.

(iii) Advertisement: Advertisement in newspapers or trade and professional journals is

generally used when a wider choice is required. Most of the senior positions of industry as
well as commerce are filled by this method.

(iv)Employment Exchange: Employment exchanges run by the Government are regarded

as a good source of recruitment for unskilled and skilled operative jobs. Employment
exchanges help to match personnel demand and supply by serving as link between job-
seekers and employers

(v)Placement Agencies and Management Consultants: In technical and professional

areas placement agencies provide a nationwide service in matching personnel demand and
supply. These agencies compile bio-data of a large number of candidates and recommend
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BUSINESS STUDIES

suitable names to their clients. Such agencies charge fee for their services and they are
useful where extensive screening is required.
Management consultancy firms help the organisations to recruit technical, professional and
managerial personnel. They specialise in middle level and top level executive placements.
They maintain data bank of persons with different qualifications and skills and even
advertise the jobs on behalf of their clients to recruit right type of personnel.

(vi) Campus Recruitment: Colleges and institutes of management and technology have
become a popular source of recruitment
for technical, professional and managerial jobs. Many big organisations maintain a close
liaison with the universities, vocational schools and management institutes to recruit
qualified personnel for various jobs

(vii)Recommendations of Employees: Applicants introduced by present employees, or

their friends and relatives may prove to be a good source of recruitment. Such applicants
are likely to be good employees because their background is sufficiently known. A type of
preliminary screening takes place because the present employees know both the company
and the candidates and they would try to satisfy both.

(viii)Labour Contractors: Labour contractors maintain close contacts with labourers and
they can provide the required number of unskilled workers at short notice. Workers are
recruited through labour contractors who are themselves employees of the organisation.
The disadvantages of this system are that if the contractor himself decides to leave the
organisation, all the workers employed through him will follow suit.

(ix) Advertising on Television: The practice of telecasting of vacant posts over Television
is gaining importance these days. The detailed requirements of the job and the qualities
required to do it are publicized alongwith the profile of the organisation where vacancy
exists.

(x) Web Publishing: Internet is becoming a common source of recruitment these days.
There are certain websites specifically designed and dedicated for the purpose of providing
information about both job seekers and job opening. In fact, websites such as
www.naukri.com, www.jobstreet.com etc., are very commonly visited both by the
prospective employees and the organisations searching for suitable people.

Merits of External Sources

1. Qualified Personnel: By using external source of recruitment the management can

attract qualified and trained people to apply for the vacant jobs in the organization.
2. Wider Choice: The management has a wider choice in selecting the people for
employment.
3. Fresh Talent: It provides wider choice and brings new blood in the organization.
CLASS XII COMPILED BY SUDHIR SINHA
BUSINESS STUDIES

4. Competitive Spirit: If a company taps external sources, the staff will have to compete
with the outsiders.

Limitations of External Sources of Recruitment:

1. Dissatisfaction among existing employees: Recruitment from outside may cause

dissatisfaction among the employees. They may feel that their chances of promotion are
reduced.
2. Costly process: A lot of money has to be spent on advertisement therefore this is costly
process.
3. Lengthy Process: It takes more time than internal sources of recruitment.

SELECTION
Selection is the process of identifying and choosing the best person out of a number of
prospective candidates for a job.

Process of Selection
The important steps in the process of selection are as follows:
(i) Preliminary Screening: Preliminary screening helps the Manager eliminate
unqualified or unfit job seekers based on the information supplied in the application forms.
Preliminary interviews help reject misfits for reasons, which did not appear in the
application forms.

(ii) Selection Tests:An employment test is a mechanism (either a paper and pencil test
or an exercise) that attempts to measure certain characteristics of individuals. These
characteristics range from aptitudes, such as manual dexterity, to intelligence to
personality. Important Tests Used for Selection of Employees includes (a) intelligence Test
(b) Aptitude (c) Personality Tests (d) Trade Test (e) Interest Tests

(III) Employment Interview: Interview is a formal, in-depth conversation conducted to

evaluate the applicant’s suitability for the job

(IV) Reference and Background Checks: Many employers request names, addresses,
and telephone numbers of references for the purpose of verifying information and, gaining
additional information on an applicant. Previous employers, known persons, teachers and
university professors can act as references.

(V) Selection Decision: The final decision has to be made from among the candidates
who pass the tests, interviews and reference checks. The views of the concerned manager
will be generally considered in the final selection because it is he/she who is responsible
for the performance of the new employee.
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BUSINESS STUDIES

(VI) Medical Examination: After the selection decision and before the job offer is made,
the candidate is required to undergo a medical fitness test. The job offer is given to the
candidate being declared fit after the medical examination.

(VII) Job Offer: The next step in the selection process is job offer to those applicants
who have passed all the previous hurdle

(VIII) Contract of Employment: After the job offer has been made and candidate
accepts the offer, certain documents need to be executed by the employer and the
candidate.

Training: Training is the act of increasing the knowledge and technical skills of an
employee for doing a particular job efficiently. Both existing employees and new employees
get acquainted with their jobs and this increases job related skills.

Benefits to the Organization:

1. It enhances employee’s productivity and quality.

2. Training increases employee’s morale.
3. Employees get new technical knowledge.
4. Efficient use of machines.

Benefits to the Employee:

1. Improved skills and knowledge of employee.

2. Increased performance by the individual help him to earn more.
3. Less accidents.
4. Training increases the satisfaction and morale of the employee.

ON THE JOB TRAINING:

Apprenticeship Programmes: Apprenticeship programmes put the trainee under the

guidance of a master worker. These are designed to acquire a higher level of skill. People
seeking to enter skilled traits, to become, for example, plumbers, electricians or iron-
workers, are often required to undergo apprenticeship training.

Internship Training:It is a joint programme of training in which educational institutions

and business firms cooperate. Selected candidates carry on regular studies for the
prescribed period. They also work in some factory or office to acquire practical knowledge
and skills.

Induction training is a type of training given to help a new employee in settling down
quickly into the job by becoming familiar with the people, the surroundings, the job and the
business. The duration of such type of training may be from a few hours to a few days. The
CLASS XII COMPILED BY SUDHIR SINHA
BUSINESS STUDIES

induction provides a good opportunity to socialize and brief the newcomer with the
company’s overall strategy, performance standards etc. If carefully done, it saves time and
cost (in terms of effectiveness or efficiency etc.)

OFF THE JOB TRAINING:

Computer Modelling:It simulates 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.

Vestibule Training:Employees learn their jobs on the equipment they will be using, but
the training is conducted away from the actual work floor. Actual work environments are
created in a class room and employees use the same materials, files and equipment. This is
usually done when employees are required to handle sophisticated machinery and
equipment.