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Principles of Management
Chapter 5: 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 personnel’s to fill the
roles assigned to the employers/workforce
...
”
Nature of Staffing Function
1
...
The operations of these four functions depend upon the manpower
which is available through staffing function
...
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
...
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
...
The basis of staffing function is efficient management of personnel’sHuman resources can be efficiently managed by a system or proper
procedure, that is, recruitment, selection, placement, training and
development, providing remuneration, etc
...
Staffing helps in placing right men at the right job
...

6
...
In
small companies, the top management generally performs this function
...

Staffing Process - Steps involved in Staffing
1
...
Therefore, it involves forecasting and determining the future
manpower needs of the concern
...
Recruitment- Once the requirements are notified, the concern invites and solicits
applications according to the invitations made to the desirable candidates
...
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
...
Orientation and Placement- Once screening takes place, the appointed
candidates are made familiar to the work units and work environment through the
orientation programs
...

5
...
Training is generally given
according to the nature of activities and scope of expansion in it
...
Development also includes giving them key
and important jobs as a test or examination in order to analyze their performances
...
Remuneration- It is a kind of compensation provided monetarily to the
employees for their work performances
...
Remuneration forms an
important monetary incentive for the employees
...
Performance Evaluation- In order to keep a track or record of the behavior,
attitudes as well as opinions of the workers towards their jobs
...
It
is basically concerning to know the development cycle and growth patterns of the
employees in a concern
...
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
...
Human
Resource Planning has got an important place in the arena of industrialization
...
The
procedure is as follows:
1
...

3
...


Analyzing the current manpower inventory
Making future manpower forecasts
Developing employment programs
Design training programs

Steps in Manpower Planning
1
...
For this the
following things have to be noted Type of organization
 Number of departments
 Number and quantity of such departments
 Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting
...
Making future manpower forecasts- Once the factors affecting the future
manpower forecasts are known, planning can be done for the future manpower
requirements in several work units
...
Expert Forecasts: This includes informal decisions, formal expert
surveys and Delphi technique
...
Trend Analysis: Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis), and
statistical analysis (central tendency measure)
...
Work Load Analysis: It is dependent upon the nature of work load in a
department, in a branch or in a division
...
Work Force Analysis: Whenever production and time period has to be
analyzed, due allowances have to be made for getting net manpower
requirements
...
Other methods: Several Mathematical models, with the aid of computers
are used to forecast manpower needs, like budget and planning analysis,
regression, new venture analysis
...
Developing employment programs- Once the current inventory is compared
with future forecasts, the employment programs can be framed and developed
accordingly, which will include recruitment, selection procedures and placement
plans
...
Design training programs- These will be based upon extent of diversification,
expansion plans, development programs, etc
...
It is also
done to improve upon the skills, capabilities, knowledge of the workers
...
Key to managerial functions- The four managerial functions, i
...
, planning,
organizing, directing and controlling are based upon the manpower
...
Therefore,
staffing becomes a key to all managerial functions
...
Efficient utilization- Efficient management of personnel’s becomes an important
function in the industrialization world of today
...
It can be effectively done through
staffing function
...
Motivation- Staffing function not only includes putting right men on right job,
but it also comprises of motivational programs, i
...
, incentive plans to be framed
for further participation and employment of employees in a concern
...


4
...
Human relations become strong trough effective control,
clear communication, effective supervision and leadership in a concern
...

5
...
Higher productivity is a result of minimum wastage of time,
money, efforts and energies
...
Manpower Planning is advantageous to firm in following
manner:
1
...

2
...

3
...

4
...

5
...
Through manpower planning,
human resources can be readily available and they can be utilized in best manner
...
It helps the organization to realize the importance of manpower management
which ultimately helps in the stability of a concern
...
Under Utilization of Manpower: The biggest obstacle in case of manpower
planning is the fact that the industries in general are not making optimum use of
their manpower and once manpower planning begins, it encounters heavy odds in
stepping up the utilization
...
Degree of Absenteeism: Absenteeism is quite high and has been increasing since
last few years
...
Lack of Education and Skilled Labor: The extent of illiteracy and the slow pace
of development of the skilled categories account for low productivity in
employees
...

4
...
Any increase in manpower is considered at the top level of management
b
...
These
act as control mechanisms to keep the manpower under certain broadly
defined limits
...
The productivity of any organization is usually calculated using the
formula:
Productivity = Output / Input

...
of employees
d
...
For conservation
of Human Resources and better utilization of men studying this condition,
manpower control would have to take into account the data to make
meaningful analysis
...
Extent of Overtime: The amount of overtime paid may be due to real
shortage of men, ineffective management or improper utilization of
manpower
...

Few Organizations do not have sufficient records and information on manpower
...
There are complications in
resolving the issues in design, definition and creation of computerized personnel
information system for effective manpower planning and utilization
...
This is a strategic disadvantage
...
Internal Recruitment - is a recruitment which takes place within the concern or
organization
...

Internal sources are primarily three - Transfers, promotions and Re-employment of
ex-employees
...
There are situations when ex-employees provide unsolicited applications
also
...
It also saves time, money and efforts
...
Also, not all the
manpower requirements can be met through internal recruitment
...

a
...
Promotions (through Internal Job Postings) and
c
...
There are situations when exemployees provide unsolicited applications also
...
External Recruitment - External sources of recruitment have to be solicited from
outside the organization
...
But it involves
lot of time and money
...

a
...
This kind of recruitment is applicable
generally where factory workers are to be appointed
...
These applicants
are called as unsolicited applicants
...
For this kind of recruitment workers have a tendency to
shift from one factory to another and therefore they are called as “badli”
workers
...
Advertisement - It is an external source which has got an important place
in recruitment procedure
...
Medium used is Newspapers and Television
...
Employment Exchanges - There are certain Employment exchanges
which are run by government
...
Now-a-days recruitment
in government agencies has become compulsory through employment
exchange
...
Employment Agencies - There are certain professional organizations
which look towards recruitment and employment of people, i
...
these
private agencies run by private individuals supply required manpower to
needy concerns
...
Educational Institutions - There are certain professional Institutions
which serve as an external source for recruiting fresh graduates from these
institutes
...
They have special
recruitment cells which help in providing jobs to fresh candidates
...
Recommendations - There are certain people who have experience in a
particular area
...
There
are certain vacancies which are filled by recommendations of such people
...

g
...
Through these
contractors, workers are appointed on contract basis, i
...
for a particular
time period
...


Employee Selection Process
Employee Selection is the process of putting right men on right job
...

Effective selection can be done only when there is effective matching
...
Moreover, organization will face less of absenteeism and employee turnover
problems
...
Proper screening of candidates takes place during selection procedure
...

But selection must be differentiated from recruitment, though these are two phases of
employment process
...
It creates a pool of applicants
...
While selection is a negative process as the inappropriate candidates are rejected
here
...
Selection involves choosing the
best candidate with best abilities, skills and knowledge for the required job
...
Preliminary Interviews- It is used to eliminate those candidates who do not meet
the minimum eligibility criteria laid down by the organization
...
Preliminary interviews are less
formalized and planned than the final interviews
...
Preliminary interviews are also called
screening interviews
...
Application blanks- The candidates who clear the preliminary interview are
required to fill application blank
...

3
...
These tests are
used to objectively assess the potential candidate
...

4
...
It is used to find whether the candidate is best suited
for the required job or not
...

Moreover the competencies of the candidate cannot be judged
...
Such interviews should be conducted properly
...
There should be an honest communication
between candidate and interviewer
...
Medical examination- Medical tests are conducted to ensure physical fitness of
the potential employee
...

6
...


Difference between Recruitment and Selection
Basis

Recruitment

Selection

Meaning

It is an activity of establishing
contact between employers and
applicants
...


Objective

It encourages large number of
Candidates for a job
...


Process

It is a simple process
...


Hurdles

The candidates have not to
cross over many hurdles
...


Approach

It is a positive approach
...


Sequence

It precedes selection
...


Economy

It is an economical method
...


Time
Consuming

Less time is required
...


Orientation and Placement
Once the candidates are selected for the required job, they have to be fitted as per the
qualifications
...
e
...

Once he is fitted into the job, he is given the activities he has to perform and also told
about his duties
...
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 nature of Orientation program varies with the organizational size, i
...
, smaller the
organization the more informal is the Orientation and larger the organization more
formalized is the Orientation program
...
The
employees will be more satisfied and contended with their work
...
Training is the process of
enhancing the skills, capabilities and knowledge of employees for doing a particular job
...
It is continuous and never ending in nature
...
It is fruitful to both
employers and employees of an organization
...

Training is given on four basic grounds:
1
...
This training
familiarizes them with the organizational mission, vision, rules and regulations
and the working conditions
...
The existing employees are trained to refresh and enhance their knowledge
...
If any update and amendments take place in technology, training is given to cope
up with those changes
...
The employees are trained about
use of new equipments and work methods
...
When promotion and career growth becomes important
...

The benefits of training can be summed up as:
1
...
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
...
Less supervision- A well trained employee will be well acquainted with the job
and will need less of supervision
...

3
...
The more trained an employee is, the
less are the chances of committing accidents in job and the more proficient the
employee becomes
...
Chances of promotion- Employees acquire skills and efficiency during training
...
They become an asset for the
organization
...
Increased productivity- Training improves efficiency and productivity of
employees
...

There is less wastage of time, money and resources if employees are properly
trained
...
On the job training- On the job training methods are those which are given to
the employees within the everyday working of a concern
...
The in proficient as well as semi- proficient employees
can be well trained by using such training method
...
The motto of such training is “learning by doing
...

2
...
It is generally used in case of
new employees
...
Such method is costly and is effective if and only if
large number of employees have to be trained within a short time period
...
e
...
known as a vestibule)
where the actual working conditions are duplicated
...
Remuneration provides basic attraction to a employee to
perform job efficiently and effectively
...

Salaries constitute an important source of income for employees and determine their
standard of living
...

Thus the amount and method of remuneration are very important for both management
and employees
...
Time Rate Method

2
...
Time Rate Method: Under time rate system, remuneration is directly linked with
the time spent or devoted by an employee on the job
...
It is a very simple method of remuneration
...
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
...

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
...

2
...
In this system
emphasis is more on quantity output rather than quality output
...
There is less supervision required under this method and hence the
per unit cost of production is low
...
There is
greater work-efficiency in this method
...

Piece rate system is more suitable where the nature of work is repetitive and
quantity is emphasized more than quality

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