HANDOUT
2026-27
THIS HANDOUT IS NOT A SUBSTITUTE FOR THE NCERT TEXTBOOK. IT IS
INTENDED TO HELP YOU FOCUS ON SPECIFIC CONCEPTS .
FOR PERSONAL EDUCATIONAL USE ONLY.
“Our assets walk out of the door each evening. We have to make sure that they come back the next
morning” (as stated by Narayana Murthy former, CEO of INFOSYS.
The foundation of any organisation is the talented and hardworking people, who are the principal
assets of any firm.
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.
Staffing has been described as the managerial function of filling and keeping filled the positions
in the organisation structure.
Once the number and types of personnel to be selected is determined, management starts with the
activities relating to recruiting, selecting and training people, to fulfill the requirements of the
enterprise. In an existing enterprise, staffing is a continuous process because new jobs may be
created and some of the existing employees may leave the organisation.
IMPORTANCE OF STAFFING
➢ Helps in discovering and obtaining competent personnel for various jobs;
➢ Makes for higher performance, by putting right person on the right job;
➢ Ensures the continuous survival and growth of the enterprise through the succession planning for
managers;
➢ Helps to ensure optimum utilisation of the human resources. By avoiding overmanning.
➢ Improves job satisfaction and morale of employees through objective assessment and fair reward
for their contribution.
HUMAN RESOURCE MANAGEMENT INCLUDES
MANY SPECIALISED ACTIVITIES AND DUTIES
WHICH THE HUMAN RESOURCE PERSONNEL
MUST PERFORM. THESE DUTIES ARE:
Recruitment i.e., search for qualified people
Analysing jobs, collecting information about jobs to prepare job descriptions.
Developing compensation and incentive plans.
Training and development of employees for efficient performance and career growth.
Maintaining labour relations and union management relations.
Handling grievances and complaints.
Providing for social security and welfare of employees.
Defending the company in law suits and avoiding legal complications.
STAFFING PROCESS
(i) Estimating the Manpower Requirements:
(ii) Recruitment
(iii) Selection
(iv) Placement and Orientation:
(v) Training and Development:
(vi) Performance Appraisal
(vii) Promotion and career planning
(viii) Compensation
ESTIMATING THE MANPOWER REQUIREMENTS:
Understanding the manpower requirements would necessitate workload analysis on the one hand
and workforce analysis on the other.
Workload analysis would enable an assessment of the number and types of human resources
necessary for the performance of various jobs and accomplishment of organisational objectives.
Workforce analysis would reveal the number and type available.
RECRUITMENT
Recruitment may be defined as the process of searching for prospective employees and stimulating
them to apply for jobs in the organisation.
The essential objective is to create a pool of the prospective job candidates.
SELECTION
Selection is the process of choosing from among the pool of the prospective job candidates
developed at the stage of recruitment.
selection process serves two important purposes:
(i) it ensures that the organisation gets the best among the available, and
(ii) it enhances the self-esteem and prestige of those selected and conveys to them the seriousness
with which the things are done in the organisation
PLACEMENT AND ORIENTATION
Orientation is introducing the selected employee to other employees and familiarising him with
the rules and policies of the organisation.
Placement refers to the employee occupying the position or post for which the person has been
selected.
TRAINING AND DEVELOPMENT
If employee motivation is high, their competencies are strengthened, they perform better and thus,
contribute more to organisational effectiveness and efficiency.
PERFORMANCE APPRAISAL
Performance appraisal means evaluating an employee’s current and/or past performance as against
certain predetermined standards.
The performance appraisal process, therefore, will include defining the job, appraising
performance and providing feedback.
PROMOTION AND CAREER PLANNING
Promotions are an integral part of people’s career. They refer to being placed in positions of
increased responsibility. They usually mean more pay, responsibility and job satisfaction.
COMPENSATION
Compensation, therefore, refers to all forms of pay or rewards going to employees. It may be in
the form of direct financial payments like wages, salaries, incentives, commissions and bonuses
and indirect payments like employer paid insurance and vacations.
Aspects of staffing
There are three aspects of staffing: recruitment, selection and training.
Recruitment
Recruitment refers to the process of finding possible candidates for a job or a function. ‘The
process of searching for prospective employees and stimulating them to apply for jobs in an
organisation.
Merits of Internal Sources
(i) Employees are motivated to improve their performance.
(ii) Internal recruitment also simplifies the process of selection and placement
(iii) A tool of training
(iv) Benefit of shifting workforce
Limitations of Internal Sources
(i) The scope for induction of fresh talent is reduced.
(ii) Employees may become lethargic if they are sure of timebound promotions;
(iii) New enterprise cannot use internal sources of recruitment.
(iv) Spirit of competition among the employees may be hampered
(v) Frequent transfers of employees may often reduce the productivity of the organisation.
Merits of External Sources
(i) Qualified Personnel:
(ii) Wider Choice:
(iii) Fresh Talent:
(iv) Competitive Spirit:
Limitations of External Sources
1. Dissatisfaction among existing staff
2. Lengthy process:
3. Costly process:
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
(i) Preliminary Screening: (Eliminate unqualified or unfit job seekers based on the
information supplied in the application forms)
(ii) Selection Tests:
a. Intelligence Tests: (Used to measure the level of intelligence quotient of an
individual)
b. Aptitude Test (Measure of individuals potential for learning new skills.)
c. Personality Tests: (Tests provide clues to a person’s emotions, her reactions,
maturity and value system etc)
d. Trade Test: (Measure the existing skills of the individual. They measure the level
of knowledge and proficiency in the area of professions or technical training.)
e. Interest Tests: (Used to know the pattern of interests or involvement of a person.)
(iii) Employment Interview: (Evaluate the applicant’s suitability for the job.)
(iv) Reference and Background Checks: (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:
(vi) Medical Examination (Purpose of verifying information and, gaining additional
information on an applicant. Previous employers, known persons, teachers and
university professors can act as references)
(vii) Job Offer: (Job offer is made through a letter of appointment/confirm his acceptance)
(viii) Contract of Employment:
Training and Development
Benefits of training to the organisation
(i) Training is a systematic learning, always better than hit and trial methods which lead
to wastage of efforts and money.
(ii) It enhances employee productivity both in terms of quantity and quality, leading to
higher profits.
(iii) Training equips the future manager who can take over in case of emergency.
(iv) Training increases employee morale and reduces absenteeism and employee turnover.
(v) It helps in obtaining effective response to fast changing environment – technological
and economic.
Benefits of training to the employee
(i) Improved skills and knowledge due to training lead to better career of the individual.
(ii) Increased performance by the individual help him to earn more.
(iii) Training makes the employee more efficient to handle machines. Thus, less prone to
accidents.
(iv) Training increases the satisfaction and morale of employees.
Training Methods
Broadly categorised into two groups: On-the-Job and Off-the Job methods.
On-the-Job methods refer to the methods that are applied to the workplace, while the employee
is actually working.
Off-the-Job methods are used away from the work
place.
On the Job Methods
(i) Apprenticeship Programmes –
Apprenticeship programmes put the trainee
under the guidance of a master worker. These
are designed to acquire a higher level of skill.
(ii) Coaching: - In this method, the superior
guides and instructs the trainee as a coach. The coach
or counsellor sets mutually agreed upon goals,
suggests how to achieve these goals, periodically
reviews the trainees progress and suggests changes
required in behaviour and performance.
(iii) Internship Training -
(iv) Job Rotation –
Off the Job Methods
1. Class Toom Lectures/Conferences –
2. Films –
Provide information and
explicitly demonstrate skills that
are not easily represented by the
other techniques. Used in
conjunction with conference
discussions, it is a very effective
method in certain cases.
3. Case Study - Taken from actual
experiences of organisations, cases
represent attempts to describe, as accurately
as possible real problems that managers
have faced. Trainees study the cases to
determine problems, analyse causes,
develop alternative solutions, select what
they believe to be the best solution, and
implement it.
4. 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
5. 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.
6. Programmed Instruction: -
Information is broken into meaningful
units and these units are arranged in a
proper way to form a logical and
sequential learning package.
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