Introduction to Management Ch 5

UNIT-6: STAFFING

Staffing is that part of the process of management which is concerned with obtaining utilizing
and maintaining a satisfied work force. Its purpose is to establish and maintain sound personal
relations at all levels in the organization so as to make effective use of personnel to attain the
objectives of the organization and to provide personal and social satisfaction, which personnel
wants.
In the words of Koontz and O’Donnell, staffing can be defined as “filling positions in the
organizational structure through identifying work force requirements, inventorying the work
force, recruitment, selection, placement, promotion, appraisal, compensation and training of
people”. Staffing, like all other managerial functions, is the duty which a manager performs at all
times.
6.1. The Recruitment Function
Selection of a suitable candidate is the most important function of personnel department. If a
right candidate is not selected, such an error can prove to be very costly for an undertaking.
Many organizations, therefore, have developed sophisticated recruiting and selection methods.
Manpower planning must precede recruitment and selection. Recruitment is a positive process of
searching for prospective employees and stimulating them to apply for the jobs in the
organization. In simple words, the term recruitment stands for discovering the sources from
where potential employees will be available. The scientific recruitment leads to greater
productivity, better wages, high morale, reduction in labor turnover and better reputation. It
stimulates people to apply for jobs and hence it is a positive process.
 Bases for Recruitment
Job analysis means the breaking down of the main content of a job. That is the basic
activities that need to be performed by whosoever is going to occupy that position.
Consequently, job analysis attempts to reveal the degree of skills and personal
qualifications needed to perform the task under consideration.
Job description: Job description involves a written report which is based on job
analysis. In describing the job, the manager talks about the expected outcome when the
activities already identified in the job analysis are carried out. It also involves comparing
that job with other jobs in other positions. Job title must also be given to the job because
every position must have a job title. Again job description will entrant showing what
mental and physical skills that will be needed to do the job.
Job Classification: Job classifications involves the grouping together of several
positions into a single class and then assign common rates and benefits to all of them.
As an example, supervisors in personnel department, marketing department and finance
department can be grouped together into one class and assigned the same rate. Of course
the grouping will be done by considering the qualification (s), job experience among
other factors.

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Job specification, as the name implies, is to specify what manner of a man or woman
that can reasonably perform the task that has been analyzed and described. It points out
among others, the special attributes that will be required to successfully do the job.
Sources of Recruitment
Basically there are two sources of recruitment namely internal and external sources:
1. Internal Source: In the case of internal source, the selection of candidates for the jobs will
be done from among the existing employees of the organization. Preference may also be
given to the family members, relatives or friends of the existing employees. If the employer
believes in the proverb ‘known devil is better than an unknown angel’ he will rely on the
internal source. The following are the ways of filling up vacancies internally:
 Transfer: This is probably the easiest approach to filling up a vacancy. If a particular
department has a couple of surplus staff and another department is short staffed, the
surplus staff may be transferred to that other department. Such an approach avoids the
need to dispense with surplus staff (called ‘retrenchment’) in one place and make fresh
recruitment in another place of the organization.
 Promotion: Usually, when a vacancy arises at a higher level in an organization, it is
filled up by elevating a person who comes next in the organizational hierarchy. For
example, if the post of Sales Manager is vacant, the senior most sales officer may be
appointed for the post. In turn, an experienced salesman may be made the sales officer.
Merits of Internal Sources of Recruitment:
The following are the advantages of recruiting employees by the internal source:
 This improves their morale and induces them to constantly update their knowledge.
 As the management already knows the employee, there is no risk involved in appointing
him to some other post in the organization.
 As the employee is already familiar with the organizational policies, rules and
regulations, these need not be explained to him.
 Internal source of recruitment also saves lot of time and money for the management.
Disadvantages:
The following are the demerits of internal source of recruitment:
 It restricts choice. The idea should be to appoint the fittest person for a job and not a
known person.
 It denies opportunities for capable outsiders.
 As an existing employee is accustomed to the organizational routine, he lacks the
capacity to think originally.
2. External Sources:
 Advertisement: Advertisement is the most effective means to search potential employees
from outside the organization. Employment advertisement in journals, newspapers, bulletins,
etc., is quite common in our country.
 Employment Agencies: Many organizations get the information about the prospective
candidates through employment agencies.

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 On Campus Recruitment: Many organizations conduct preliminary search of prospective

employees by conducting interviews at the campuses of various institutes, universities, and
colleges.
 Deputation: Many organizations take people on deputation from other organizations. Such
people are given choice either to return to their original organization after a certain time or to
opt for the present organization.
 Recommendation by existing employees: Vacancies may also be filled up on the basis of
recommendations made by the existing employees of the concern. A family member, relative
or friend of an employee may be considered for appointment.
 Labor Unions: In many organizations, labor unions are used as source of manpower supply,
though at the lower levels. In many organizations, unions are asked to make
recommendations for employment of people as a matter of goodwill and cooperation.
 Gate Hiring: The concept of gate hiring is to select people who approach on their own for
employment in the organization. This happens mostly in the case of unskilled and semiskilled
workers.
SELECTION: “Selection is the process in which candidates for employment are divided into
two classes, those who are to be offered employment and those who are not to be”.
SELECTION PROCESS: A selection process involves a number of steps. The basic idea is to
solicit maximum possible information about the candidates to ascertain their suitability for
employment. A standard selection process has the following steps; Receiving application form,
screening of application forms, selection tests, interview, checking of references, physical
examination, approval by appropriate authority and placement. Below is a discussion of the
various steps.
 Receiving Application Form: The first step in the selection of candidates is to receive
application forms from all eligible candidates. The candidates may be asked to submit
their applications together with their bio data on a plain paper. Sometimes, the
organization itself may make available printed applications..
 Screening of Applications: Prospective employees have to fill up some sort of
application forms. These forms have variety of information about the applicants like their
personal bio-data, achievement, experience, etc., Such information is used to screen the
applicants who are found to be qualified for the consideration of employment. The
information may also be used to keep permanent records of those persons who are
selected. Based on the screening of applications, only those candidates are called for
further process of selection that is found to be meeting the job standards of the
organization.
 Selection Tests: Many organizations hold different kinds of selection tests to know more
about the candidates or to reject the candidates who cannot be called for interview, etc.,

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 Interview: Selection tests are normally followed by personal interview of the candidates.
The basic idea here is to find out overall suitability of candidates for the jobs. It also
provides opportunity to give relevant information about the organization to the
candidates.
 Checking of References: Many organizations ask the candidates to provide the names of
referees from whom more information about the candidates can be solicited. Such
information may be related to character, working, etc., The usual referees may be
previous employers, persons associated with the educational institutions from where the
candidates have received education, or other persons of prominence who may be aware of
the candidates’ behavior and ability.
 Physical Examination: Physical examination is carried out to ascertain the physical
standards and fitness of prospective employees.
 Approval by Appropriate Authority: On the basis of the above steps, suitable
candidates are recommended for selection by the selection committee or personnel
department.
 Placement: After all the formalities are completed, the candidates are placed on their
jobs initially on probation basis. The probation period may range from six months to two
years. During this period, they are observed keenly, and when they complete this period
successfully, they become the permanent employees of the organization.
SELECTION TESTS:
A test is an instrument designed to measure selected psychological factors.
Types of Tests: The use of tests in selection is so widespread that these may be classified in
various ways. They may have different objectives and measure different attributes. However,
most of these tests fall in one of the following categories:
 Achievement Test: It is also called performance test or trade test. Achievement is
concerned with what one has accomplished. Performance test may be administered for
selecting employees at operative level as well as junior management level.
 Intelligence Test: Intelligence test tries to measure the level of intelligence of a
candidate. This test generally includes verbal comprehension, word fluency , memory ,
inductive, reasoning, number facility , speed of perception, spatial, visualization, etc.,
 Personality Test: Dimensions of personality such as interpersonal competence,
dominance-submission, extroversion introversion, self-confidence, leadership ability,
patience, and ambition can be measured through personality tests.
 Aptitude Test: Aptitude test is used for measuring human performance characteristics
related to the possible development of proficiency on specific jobs. Aptitude test
measures the latent or potential characteristics to do something provided proper
environment. Aptitude training is provided to the individuals. This test is more valid
when the applicants have no experience or very little experience along the lines of the
jobs.

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 Interest Test: Interest test is designed to discover a person’s area of interest, and identify
the kind of jobs that will satisfy him.
Induction and Placement
Induction: Induction is concerned with the problem of introducing or orienting a new employee
to the organization. It consists of familiarizing new employees with their jobs, introduction with
his fellow workers, company policies etc. There are two phases of induction training program:
The first phase is generally conducted by the personnel department. It is concerned with
giving the new employee a friendly welcome briefing him in the matters concerned with
the company's background, products, health and welfare plans. He may be taken around
the factory and introduced to the security officer, time keeper and cashier.
The second phase of the induction program is conducted by the head of the department
in which he is to work. The employee is given information regarding production process,
work rules, working conditions etc. The employee is then informed about the customs
prevalent in the organization such as dress, lunch, refreshments, etc. Good induction is a
good business for the firm and a basic desire of most, if not all the new employees.
Objects of Systematic Induction
 To promote a feeling of belongingness and loyalty among the employees.
 To provide information to the employee regarding policies of the organization.
 To give information to the new employee as to leave rules, location of canteen etc.
 To build confidence in the new employee so that he can become an efficient worker.
Placement: The candidates selected for appointment are to be offered specific jobs. There should
be a perfect matching of the requirements of the job and the abilities/skills of the employee
concerned. Only then effective placement will take place. In practice, right placement is not an
easy task. It may take a long time before a candidate is placed on the right job. Generally, the
candidate is appointed on probation of one year or so.
Training and Development Function
Training: Training is concerned with imparting and developing specific skills for a particular
purpose. For example, Flippo has defined training as “the act of increasing the skills of an
employee for doing a particular job”. Thus, training is a process of learning a sequence of
programmed behavior. This behavior, being programmed, is relevant to a specific phenomenon
that is a job.
Merits/Benefits/Advantages of T raining:
 Increased Productivity: Training increases the knowledge and skills of employees.
Therefore, well-trained employees give better performance on the job. Training results in
higher quantity and quality of output.
 Job Satisfaction: Training builds self-confidence in the employee and enables him to
achieve the required level of performance. Their enthusiasm, pride and interest in the job
increases. As a result they derive greater satisfaction from their jobs and their morale
goes up. Their attitude becomes more positive and cooperative.

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 Reduction in Accidents: Generally, trained employees are less prone to accidents than
the untrained ones. Proper training develops safety attitudes and helps to reduce the
accident rate.
 Better Use of Resources: Well-trained employees make better use of machines and
materials. As a result the rate of spoilage or wastage of materials is reduced. There is less
breakage of machinery and tools. The maintenance cost is reduced and life of machines is
increased.
 Reduced Supervision: Trained employees need less guidance. Therefore, need for
supervision is reduced. The span of supervision can be increased and the costs of
supervision reduced.
 Greater Flexibility: An organization with trained personnel can introduce latest
technology to reduce costs of production. Trained employees show less resistance to
change. The enterprise can easily adjust to short-term variations in the volume of work.
 Management by Exception: Trained employees are self-dependent and can perform
routine work independently. Therefore, supervisors can easily delegates authority and
reduce their workload. They can practice management by exception and devote their time
and energy to more important policy matters.
Types of Training: The various types of training may be grouped under two categories:
 On-the-job training
 Off-the job training
On-the-job training: On-the-job training refers to training given to an employee in the place
where he is employed. Work and learn is the philosophy of such a training concept. The
following are some of the important on-the-job training methods:
1. Induction Training: Induction training is also known as ’orientation training’. It is
required for all new employees. A new employee must also be informed of the policies,
rules and regulations of the organization pertaining to signing attendance, availing leave,
transfer, promotion and so on.
2. Apprenticeship Training: This is a conventional or a traditional method of training. In
such a method, the trainee, called apprentice, is placed under a qualified senior worker.
The apprentice learns the work by observing and assisting his senior.
3. Refresher Training: The objective of refresher training is to enable the workers to
constantly update their job knowledge. It is not necessary for a worker to undergo
refresher training outside his workplace. If a new and sophisticated machine has been
acquired by a business, the seller of the machine will educate the workers on the method
of operation.
4. Job Rotation: This kind of training enables an employee to become well-versed in
different kinds of work, each of which is not totally different. Clerks in banks are usually
subjected to job rotation. In a bank the employee is made to serve in different sections –
savings bank, current account, fixed deposit, and cash and so on.

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5. Placement as Assistants: It is common to find certain designations in an organization as

Assistant Accounts Manager’, Assistant Production Manager’, Assistant Sales Manager’
etc., Such designations only imply that these executives are going to be posted as
‘Accounts Manager’, ‘Production Manager’ and Sales Manager respectively in future
when vacancies arise.
6. Vestibule Training: In the context of training, the term ‘vestibule’ refers to a training
school established within the factory premises. The working conditions and facilities in
such a training school are so created that the place of training almost resembles the actual
workplace. Instructors specifically appointed for the purpose will train a large number of
workers in such a school.
Off-the-Job training: Off-the-job training refers to training given to staff at a place away from
the actual work place. The following are some of the important off-the-job training methods:
1. Lectures and Conferences: There are staff training colleges like the Administrative
Staff College in Hyderabad that train executives. Conferences provide an opportunity for
the executive trainees of different enterprises to meet at a particular place for the sake of
exchanging, views on specific organizational issues.
2. Role Playing: It is a training method in which the participant trainees are to enact the
roles given to them. In a role playing session, a specific organizational problem may be
explained to the trainee group and each participant may be asked to act in the manner he
would if he were the decision-maker.
3. Case Study: In case study method, the trainees are given an organizational problem in
written form. The problem may be something that has been experienced in some
workplace or may even be an imaginary one. The participants may be asked to analyze
the cause of the problem, suggest alternative solutions and also indicate the best solution
in the prevailing conditions.
4. Management Games: Different groups of trainees participate in a management game.
The trainer specifies a certain situation in which each group has to make decisions in the
specific area assigned to it.
5. Brain Storming: It is a technique used to solve a certain important organizational
problem. For example, lack of product acceptance in the market is a serious problem that
does not concern the marketing department alone. The executives of production,
marketing, finance and other departments, in such a situation, need to meet and discuss.
In such a session, each individual is free to come out with his ideas.
6. Sensitivity Training: Such a method of training has been developed with the objective of
promoting good human relations among the trainees. Sensitivity training helps an
individual to understand group behavior and to work with others as a team. It enables a
person to develop a sense of tolerance and also gives him the courage and confidence to
answer the remarks of his associates.

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Development, on the other side, is the systematic process of education, training and growing
by which a person learns and applies information, knowledge, skills, attitudes and perceptions. It
is training offered at present for up grading the future performance of individuals at higher level
positions. Development programs seek to develop skills for future jobs. Managers receive
assistance in developing the skills required in futures jobs, conceptual and human relations skills.
Hence, development includes training and it focuses at individual growth through increasing the
general knowledge and understanding, not restricted to a particular job. In other words, training
complements development.
Maintenance and Utilization
Compensation: It refers to all forms of financial returns and tangible services and benefits
employee receives as a part of an employment relationship or it is the reward that individuals
receive in return for their labor from organization. Compensation is adequate and equitable
remuneration of personnel for their contributions to the achievement of organizational objectives.
For an employee, compensation is a means by which they support their needs and families. For
the employer, compensation represents a lion share cost.
Different factors affect compensation decisions:
 Internal factors
o the size and age of organizations
o labor budget
 External factors
o government wage controls and guidelines
o labor unions
o economic conditions of the industry
Performance appraisal (PA)
PA is defined as a human resource activity that is used to determine the extent to which an
employee is performing the job effectively. It is a formal structured system designed to measure
the actual job performance of an employee with designed performance standards. It is the
evaluation of an employee’s job performance by his superiors.
Objectives of PA
 to provide information towards strengths and weaknesses of employees
 to bring better allocation of resources
 to maintain equitable and competitive pay structure
 to supply information on training needs
 to prepare rewards
Separation
It is the final human resource management function. It refers to the termination of the
relationship between the worker and the organization due to one of the following reasons.
 Transfer is moving a person from one organizational level or location to the other.

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 Resignation refers to the termination at the instance of the employee’s interest. An employee
resigns when he or she secures a better job elsewhere or the employee may quit for personal
reasons or when an employee suffers from ill health or some other reason.
 Dismissal: - When the employer initiates the termination of employment. Some of the
reasons, which lead to the dismissal of employees, include excessive absenteeism, serious
misconduct, theft of organization’s property etc.
 The employee may also be separated from the organization due to retirement- due to age
and disability.

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