HNCC- BBA I Sem I

Class : BBA I Sem I

Subject : Principles of Management- I

Chapter 4 : Staffing

 Introduction:
Staffing is third important function of management. It is important to have a
good organisation but it is even more important to fill the jobs with the Right
people.

Staffing is the function which deals with Manning the Organisation. It means
providing organisation with Right Human Assets. Without staffing, organisation
will be mere skeleton, resources will remain idle, and objectives will be on the
paper itself. Staffing is filling the gaps of organisation.

Staffing can be defined as-

According to Koontz and O’Donnell- “ Staffing is the management function

which involves manning the organizational structure through proper and
effective Recruitment, Selection, Training & Development, Appraisal to fill the
roles designed into structure.”

Staffing is all about, having Right Person at Right Job at Right Time.

Right Job Right Man

Essentials of
Staffing

Right Time
Nature of Staffing:

1) Staffing is a managerial function.

Principles of Management- I 1 Dr. Rajni Kshirsagar

 HNCC- BBA I Sem I

2) Staffing is concerned with manning the organisation.

3) Staffing is a continuous process.
4) It is done at all levels of organisation.
5) It deals with three R’s (Right man, Right job, Right time) .
6) It is the responsibility of HR manager
7) It deals with proper planning of manpower required, intake and effective
utilization of manpower.

 Staffing Process:

Staffing is concerned with different steps related to people in organisation. It

includes certain steps which are interdependent on each other and continuous in
nature.

It includes following steps:

1) Human Resource Planning: It is the first task of staffing process. It is also

called as Manpower Planning. It is a future planning (forward looking) regarding
manpower required at different levels of organisation. It indicates what actions can
be taken to make manpower available for filling gaps at different levels of
organisation. Available manpower and required manpower is result of proper
manpower planning.

2) Job Analysis: It involves the careful study of each job. It gives information
regarding what actually to be done in job. The purpose of this step is to describe
different duties and responsibilities to be performed on the job. It also tells relation
of job to other (giving orders and reporting). It also indicates personnel capabilities
required for job.

It mainly includes:
a) Job Description: It describes the overall profile of job including role,
responsibilities and duties to be performed. It gives details of functions to be
performed of the specified job.
b) Job Specification: It deals with highlighting the skills, knowledge,
qualification and experience required for the job, which a candidate should
have.

Principles of Management- I 2 Dr. Rajni Kshirsagar

 HNCC- BBA I Sem I

3) Recruitment:

“It is defined as the process of identification of possible sources and to stimulate

them to apply for the job.”

In other words, it is generating of applications for specific positions.

It is also referred as, the process of attracting potential employees to the company.

Sources of Recruitment: These can be broadly categorized as :

a) Internal Sources b) External Sources

Internal sources refer to the present working people inside organisation, their
recommendation. On the other hand external sources means calling candidates
outside the organisation though commonly used external sources.

In comparison of above two, internal sources are cost effective than external
sources.

i) Reemploying the former employees: Former employees who have been left the
organisation for their personal reason or organizational reason, can be reemployed.
These people require less training as they are well known to environment. It may
also include, relative of retired, expired employees. This is the internal source.

ii) Employee Recommendation: Employee Recommendation of their friends,

relatives or known one’s, can be considered to fill the vacancies at levels. Some
organisation having good relations with employees, encourage them to recommend
some people in their contact. It also reduces the cost of recruitment procedure.
Generally it is used to fill the gaps in lower level.

iii) Advertisements: It is popular and mass media to tap the resources for gaps. It
is considered as effective source of recruitment. The information about vacancies
can be advertised in media like, Newspaper, Radio, Magazines, Company
Websites, etc. Nowadays separate job portals are available giving ready sources
for recruitment. E.g.: LinkedIn.com., Naukari.Com, Monstor. Com. Through
advertisement, a company can target large group of people easily within short
period of time. The advt. should contain proper information about job,
qualification, skills and experience required, date, time and venue for interview.

Principles of Management- I 3 Dr. Rajni Kshirsagar

 HNCC- BBA I Sem I

iv) Employment Exchange or Agency: It also serves as an important source of

recruitment for number of business concerns. They are considered a useful source
for the posts like Clerks, Accountants, Typists, etc. The needful candidates who
are in search of job will approach these agencies or exchanges and will all details
and expectation about the job. Business organisations can contact these agencies
for suitable candidates and if the profile matches, candidates are sent to respective
organisations. This source provides readily available database of candidates.

v) Campus Recruitment: Many organisations conduct campus recruitment or

interviews in different colleges or technical institutes, from where young and
talented persons may be recruited. It is a source of fresh talent. In this, candidates
have to go through different stages of selection procedure like Test, Group
discussions, Interviews etc.

vi) Labor Unions: In many organisations, unions are used as a source of

manpower supply at lower levels with strong recommendations of labor unions.
Recruitment may be done in the organisations by this way. It requires proper
agreement and coordination between labor and management.

vii) Gate Hiring: Unemployed persons who call at the gates of factories and
interviewed by the factory manager and those who are suitable for the vacancies
are selected for it. This happens mostly in case of unskilled or semiskilled workers.
In this case, organisation does not insure any expenditure for recruitment.

In this way, there are different sources of recruitment are available for
organisation, to identify the best source for filing gap and encouraging candidates
to apply for job.

4) Selection:

After identifying suitable sources in Recruitment, the next important step in

staffing process is Selection. Under this step, manager compares qualifications
with job requirements and eliminates all those who are not as per it is. Selection is,
accepting fit candidates and rejecting unfit candidates. Selection, generally
referred as Negative process because at each step of selection unfit candidates are
rejected or eliminated.

Principles of Management- I 4 Dr. Rajni Kshirsagar

 HNCC- BBA I Sem I

Selection can be defined as, “The process of choosing right candidate

amongst available and rejecting unfits.”

Selection Process: This process leads to employment of persons having ability to

perform the job. It includes certain steps, which are as discussed below.

These steps are not compulsorily to be followed by all organisations, but standard
steps are mentioned here. In case, organisation can skip any of below steps:

a) Application Bank and Scrutinizing Applications: This is the first step where
are candidates have to fill up a sort of application forms. It includes details like-
personal data, achievements, skills, qualification, experience, etc, Further these
applications are screened or scrutinized with reference to job description. Based
on this, only those candidates are called for next step, who are found to be meeting
job requirements of organisation.

b) Selection Tests: Many organisations hold different kinds of selection tests to

know more about candidates and reject those who cannot be called for interview.
These tests will give knowledge about Aptitude, Interest, Personality of candidate,
etc. which cannot be known by application forms.

Following are the types of selection tests:

i) Aptitude Test: is used to find out the candidate’s intelligence. It will highlight
his power of understanding, reasoning ability, mental alertness. It also measures
the applicant’s capacity to learn skills required for job. It helps to know the
suitability of candidate to job.

ii) Intelligence Test: These are general measures the IQ (Intelligent Quotient) of a
a candidate. It measures capacity of thinking, reasoning, word fluency, verbal
ability, numbers, memory and space.

iii) Achievement Test: These tests are conducted when applicants claim to know
something as these tests are concerned with what one has completed.

E.g.: A typist may be asked to type some letters to find out speed and accuracy.

iv) Job knowledge Test: Under this test, a candidate is tested in the knowledge of
a particular job. E.g.: A lecturer applies for job in commerce, he may be tested in

Principles of Management- I 5 Dr. Rajni Kshirsagar

 HNCC- BBA I Sem I

job knowledge where he asked questions about accountancy, law, management,

etc.

v) Work Sample Test: Under this test a portion of the actual work is given to eh
candidate as a test and he is asked to do it. If a candidate applies for a post of
lecturer in management, he may be asked to deliver a lecture on Management as
work sample test (Demo)

vi) Psychomotor Test: These tests measures eye and hand coordination of
candidates. These are useful to select semi skilled workers & workers for repetitive
operations like packing, watch machine lines, etc.

After any of these tests, candidates unable to crack above tests are rejected
and remaining are called for Interview as a next step of selection process.

c) Interview: Preliminary interviews can be conducted before selection tests also.

It is the most significant selection tool for all kinds of jobs. An interview might be
defined as a face to face communication between candidate and representative of
employer. In many of cases, interview is the selection tool used to select new
employees.

d) Checking References: Many organisations ask the candidate to provide the

references from whom more information about the candidate can be checked. Such
information may be related to character, trustworthiness and working of candidate.
Organisations will cross check the references so as to check history of candidates
and get additional details about him.

e) Physical or Medical Examinations: It is another step in selection procedure.

The objectives of this are:
i) To check the physical fitness of candidate for the job applied for.
ii) To check person’s ability to work under organisation’s environment.
The physical jobs like production, marketing etc, requires physically and mentally
strong candidates.
f) Approval by Appropriate Authority: Candidates clearing all stages of
selection process are finally selected for appointment for a job in organisation by
selection committee of HR dept. Such candidates are further sent for final approval
from appropriate authority. E.g.: For selection of top level executives, Board of
Principles of Management- I 6 Dr. Rajni Kshirsagar
 HNCC- BBA I Sem I

Directors may be approving authority and for lower level functional heads may be
the authority.

Accordingly, after obtaining the approval of appropriate authority, a

letter of appointment is issued to the selected candidate.

g) Placement: On the date of joining, all the formalities are completed and
candidate is placed on job on Probation (temporary) period. It may range from 3
months to 2 yrs, during which the candidate is under close observation. If his
performance is found satisfactory, he will be permanently placed by organisation.

In this way, Selection procedure completes with the final placement of right
person at right job doing right work at right time.

5) Training: After the selection of people for various jobs the next function of
management is to arrange for their training and development. This is because a
person, however carefully selected is not molded to specifications and rarely meets
the demand of his job adequately.

Training is different from education. Education has a wider scope than training.
Because training deals with knowledge of a particular job and education includes
all fields.

According to Edwin B. Flippo, “Training is the act of increasing the

knowledge and skills of employee for doing particular job.”

Training leads to overall development of employee. It is not limited to the new

employees only, but it is there for present employees in case of new updations in
technology or organisations. The term training indicates the process of refining or
sharpening the skills or abilities of individual towards best performance of a job.

Advantages of Training programme:

Systematic training offers following advantages for organisation:

1) It helps in improving quality of worker’s output

2) It helps the worker to make best use of material and equipments
3) It reduces spoilage or work damage to machinery
4) It develops effective working habits and methods of work
5) It reduces rate of accidents in organisation
Principles of Management- I 7 Dr. Rajni Kshirsagar
 HNCC- BBA I Sem I

6) It also reduces need of close supervision of work

7) It gives satisfaction to the worker and makes him feel that he is properly
cared by organisation.
8) It reduces absenteeism of worker in organisation
9) It makes employee motivated and loyal towards organisation

Types of Training:
Training can be given which is of following types differing as per the need and
requirement of organisation.
a) Induction or Orientation Training: It is used to introduce a new
employee into new environment , job situation, to his co-employees. He is
also informed about rules, working conditions, activities of company, what
company does, and other details pertaining to his job.
Most of the information, is likely to be embodied in an Employee
Handbook which is distributed to all or lecture or presentation can be
arranged. Induction may be given by HR manager or by immediate superior
of employee.
b) Job Training: It’s aim is to increase the knowledge of workers about the
jobs with which they are concerned, so that their efficiency and skill of
performance are improved. In job training, workers are enabled to learn
correct methods of handling machines, equipments , avoiding accidents,
removing bootlenecks (problems), minimizing wastes, etc.
c) Promotional Training: Many concerns follow a policy of filling some of
vacancies at higher levels by promoting existing employees. This policy
increases the morale of workers. They try to put up maximum efficiency so
that they may be considered for promotion. They are required to shoulder
new responsibilities. For this training is given to them , to reduce difficulty
in handling new role of higher position. It is a motivating factor for
employees.
d) Refresher Training: At the time of initial appointment employees are
formally trained for jobs. But with the passage of time they may forget some
of the methods which were taught to them or they may have become
outdated because of technological developments and improved techniques or
management and production. Hence, refresher training is arranged for
existing employees in order to improve their knowledge.
Principles of Management- I 8 Dr. Rajni Kshirsagar
 HNCC- BBA I Sem I

e) Corrective Training: When an employee violates or breaks company rules

or policies, the manager needs to find a way to deal with problem. It is
different from punishment. The manager should not criticize the employee
and should give an opportunity to improve the mistake. It can be done by
personally talking with employee and make him understand about his
behavior instead of scolding him in front of all others. The manager should
explain to him, why it is important to correct his behavior for him as well as
for organisation. Manager should criticize the act not the person. After this,
manager should observe the change in behavior of that employee.

6) Performance Appraisal: This is the last step of staffing process.

It is defined as the assessment, evaluation or checking the performance of

employees.
Performance appraisal or merit rating is the oldest method for evaluation of
employees.

Merit Rating was dealing with “What the person is?” while Performance
Appraisal focuses on “What the person does?” It is assessment or checking
performance of employee.

Performance Appraisal can be defined as, “It is the systematic evaluation of

individual with respect to his or her performance on the job and their potential for
development.”

It is the formal procedure used in working organisations to evaluate

personalities, contribution to organisation is checked.

Appraisal can be made by one or more superiors, subordinates, Peers

(Colleagues). They is also a concept of self appraisal in which each employee
evaluates his own performance and potential. But appraisal by direct superiors is
most common.

Organisation can have a separate committee looking towards performance

evaluation. This appraisal may be annual, semi-annual depending on company’s
rules and regulation.

Principles of Management- I 9 Dr. Rajni Kshirsagar

 HNCC- BBA I Sem I

Need or Advantages of Performance Appraisal: Some of the important

objectives are:

1) Basis for job change: Appraisal can be used as a basis for job change
(Promotion, Transfer, Discharge). Appraisal gives information regarding
employees efficiency, strength, weaknesses; which can be used to make
decisions regarding job change.
2) Determination of salary rise; Performance appraisal forms the basis for
salary hike/rise/increase of an employee at a regular interval. If he is a
performing well, management can take decision to increase salary.
3) By identifying strengths and weaknesses of employee, management can
highlight the need for training and development for him.
4) It serves as feedback system to employee
5) Performance Appraisal helps to improve the performance of employee
under the close watch of management
6) Executives and superiors develop a habit of keeping close supervision on
activities of their employees or subordinates.

Conclusion:

In this way staffing includes, Manpower Planning, Job Analysis, Recruitment,

Selection, Training and Performance Appraisal. This procedure finally results in
placing Right person at Right Job at Right Time.

-----------------

Principles of Management- I 10 Dr. Rajni Kshirsagar