CHAPTER

STAFFING

Md. Imran Hossain

Assistant Professor
Department of Finance
Jagannath University
 Introduction
 The success of any organization doesn’t depend upon the physical
and financial resources but it depends upon the utilization of these
resources by human resources. So, hardworking efficient people are
the most important asset of an organization for its success. Staffing
function is concerned with the bringing right and efficient people in
the organization

Meaning
Staffing is a managerial function of filling and keeping filled positions in the
organization structure which is achieved by identifying number of employees required
followed by recruitment, selection, placement, promotion, appraisal and development
of personnel.
 Need and Importance of staffing

 Staffing function gives more emphasis on the human

elements such as attitude, aptitude, commitment, loyalty
while selecting the right person for the right job.
 Researches on various aspects of staffing such as
recruitment, selection, compensation, incentives, training
and development are utilized for better results.
 Staffing function has been assumed on greater
importance these days because of rapid development of
technology, increasing size of organization and
complicated behavior of human beings.
 It ensures the optimum utilization of human resources by
way of avoiding surplus of workforce and prevents under
utilization of personnel.
 Need and Importance of staffing

 It avoids disruption of work by indicating in advance the shortage of

personnel.
 This function improves the job satisfaction and morale of the
employees through objective performance appraisal and fair rewarding
system.
 All other resources will become waste if there is no right kind of
personnel working in the organization
 Staffing as part of Human Resource
Management
 In small organization, no doubt, the number of personnel will be less as well
as the volume of staffing activities and its complexity will be limited to
certain extend (i.e. confined to recruitment, selection, compensation and
welfare). So, it will be possible for all the line mangers to perform all duties
related to employees in small organizations.
 But, as organizations grow into large size and number of persons employed
increases, the duties related to human resources will become more complex
and the volume of human resource activities will extended to large extend
such as Estimation of human resource requirement, Recruitment,
Selection, Training, Development, Maintenance, Compensation,
Incentive plans, Protecting health and physical conditions, Liaison with
government and trade unions, Providing social security, welfare
activities, Review and audit of personnel policies etc. So, separate
department called as human resource department consisting of specialized
experts is very much required in large organization.
Brief explanation of various stages in
staffing process

 1. Estimating the manpower requirements

 2. Recruitment
 3. Selection
 4. Placement and Orientation
 5. Training and Development
1. Estimating the manpower requirements:-

 For the purpose of understanding the manpower

requirements, the organization has to do two analysis such as
workload analysis and workforce analysis.
 Workload analysis means the assessment of number
and type of human resources necessary for the performance of
various jobs and accomplishment of objectives.
 Workforce analysis would reveal the number and
type of human resource presently available within the
organization as well as helps to understand whether the
organization is overstaffed or understaffed. A situation of
overstaffing will make the organization to for employee
removal or transfer whereas a situation of understaffing would
necessitates the organization to start the recruitment process
Here, the important thing is that before going
for recruitment stage, organisation has to
develop the two important statements mentioned
below:
Job Description which consists of the nature and
characteristics of the various jobs.
Desirable profile of the occupant of the job
which consists of desirable qualifications,
experiences, personality etc.
 2. RECRUITMENT

Meaning and Definition:-

 Recruitment means inducing or attracting
more and more candidates to apply for vacant job
positions in the organization.
 Recruitment has been defined as the
process of searching for prospective employees and
stimulating them to apply for jobs in organization.
 Process of Recruitment
The various activities involved in the process of
recruitment are given below:
Identification of the different sources of labor supply
Assessment of their validity
Choosing the most suitable source or sources
Inviting applications from the prospective candidates

Sources of Recruitment
There are two important sources of recruitment:
Internal source of recruitment
External source of recruitment
1. Internal source of recruitment
Two methods of internal source of recruitment have been
discussed below:
(a)Transfer
(b)Promotion
 (a) Transfer

 Transfer involves shifting of an employee from one job to

another or from one department to another or from one shift to
another without any substantive change in the status,
responsibilities and salary. Mainly the place of working is
changed. E.g.: Transfer of clerk from Accounts
department to Purchase department.
Transfer can be used in the organisation for following purposes;
 Shortage of suitable personnel in one branch or department
may be filled through transfer from other branch or
department
 To avoid the termination of employees as an act of
punishment
 To remove individual problems and grievances
 To train the employees for learning different jobs
 (b) Promotion

Promotion refers to the shifting of employee from the

lower job position to the higher job position carrying
higher responsibilities, increasing authority level,
status, prestige, pay and facilities.
 The main objective of promotion is to
improve the motivation, loyalty and satisfaction level
of the employees.
 Merits of Internal source of recruitment
 A promotion at higher level may lead to a chain of
promotion at lower levels. This motivates the
employees, which lead to increase the commitment
level, loyalty and satisfaction of employees.
 It simplifies the process of selection and placement
 It is a more reliable way of recruitment since the
candidates are already known to the organization.
 People recruited within organization do not need
orientation program.
 Shortage of personnel can be adjusted by transferring
personnel from surplus department.
 It is more economical and fewer amounts spent in
training as well
Demerits of Internal source of recruitment
 The scope of induction of fresh talent and infusion of
new blood will be reduced.
 Frequent transfers may reduce the productivity of
employees
 Employees may become lethargic if they are sure of
time bound promotion.
 A new enterprise can not use the internal source and
no organization can fill all its vacancies from internal
sources.
 There will be only limited choice
 2. External sources of recruitment

1. Direct Recruitment
2. Casual callers
3. Advertisement
4. Employment exchanges
5. Placement agencies and management
consultants
6. Campus recruitment
7. Recommendations of employees
8. Labor Contractors
9. Web publishing
 1. Direct Recruitment

Sometimes the organisations paste notice specifying

the details of jobs available at the gate of their office,
factory or workshop. The people who are interested
in those jobs walk in for interview. This method is
inexpensive and suitable for unskilled or semi skilled
job positions, e.g. Sweeper, peon, casual workers etc.
Generally, they are paid remuneration on daily wage
basis
 2. Casual callers
Generally, large organizations maintain an
application file consisting of unsolicited applications
which the job seekers leave with reception as well as
the applications of suitable candidates who were not
selected in previous year’s selection process. This
application file is considered as waiting list.
Whenever there is a job vacancy, the suitable
candidates from the waiting list are called It is also an
inexpensive
 3. Advertisement
The most common and popular method of external
recruitment is advertising in newspapers and trade and
professional journals. Through advertisement, more
information about the organisation and job can be given.
It gives the management wider range of candidates.
 For the job of an accountant, the
advertisement can be given in chartered accountant
journal and for unskilled and lower rank positions, the
advertisement can be given in local or regional
newspapers. But, for senior positions and skilled jobs,
advertisement is given in national level reputed
newspapers
 4. Employment exchanges
Employment exchanges act as middlemen between job
seekers and the organisation having vacant job
positions. The job seekers leave their Bio-Data with
the employment exchanges and when organisation
approach employment exchanges, suitable candidates
are sent. Thus, employment exchanges help to match
personnel demand and supply. Government
employment exchanges charge no fees whereas private
employment exchanges charge commission.
5. Placement agencies and management
consultants
In technical and professional areas, private agencies
and professional bodies appears to be doing
remarkable work on selecting suitable personnel from
external sources. These agencies compile Bio-Data of
a large number of candidates and provide the
organization specialized and efficient people who can
occupy managerial, technical and professional job
positions. These agencies are having many experts
who are specialized in manpower requirements and
charge fees or commission for their services
6. Campus recruitment
Many big organisations maintain a close liaison with
the universities, colleges, management institutes and
vocational schools to recruit qualified personnel for
technical, professional and managerial jobs. Senior
managers of organisations visit various professional
institutions to prefer fresh graduates, because they
can be molded according to the requirement of the
organisation. E.g. MBAs, Computer programmers,
Engineers are generally selected in campus
recruitment
 7. Recommendations of employees

Many firms encourage their employees to

recommend the names of their relatives, friends
and other known people to fill the vacant job
positions. The organizations prefer such
recommendations by trusting the goodwill of the
present employees. The organizations can catch
hold of existing employees if there is any problem
with the new employee recommended by him.
 8. Labour Contractors
The contractors are the people who keep in touch with
the labour in villages and rural areas and whenever
there is vacancy or requirement for labour in factory or
in construction site, they bring the labourers from
villages as well as from outskirts of city areas and
supply them to businessmen. The labour contractors
charge commission for the same. This method is
suitable only for unskilled workers and labourers.
9. Web publishing
In internet, there are certain websites specifically
designed and dedicated for the purpose of providing
information about both job seekers and job openings in
various organisations. These websites can be visited by
job seekers as well as by the companies. E.g. Naukri.com
Monster.com, Jobstreet.com etc.
 Merits of External source
of recruitment
 With external recruitment fresh and new talent
come to the organization.
 Through external recruitment the organization gets
wider choice.
 By using external recruitment the management can
get qualified and trained persons.
 Through external recruitment when outsiders join
the organization, this develops a competitive spirit
in existing employees of organization.
 Demerits of external recruitment
 The morale of existing employees goes down or falls.
 the new employees may not adjust in the rules and
regulations of the organization which means more
chances of turnovers
 It is expensive as to invite the outsider to apply for the
job, companies have to bear heavy burden of
advertising.
 External recruitment takes long time to select suitable
personnel
 3. SELECTION
Meaning:-
 Selection can be defined as
discovering most promising and most
suitable candidate to fill up the vacant job
position among the pool of prospective
job candidates developed at the stage of
recruitment.
 Process of selection
1. Preliminary Screening
2. Selection Tests
(a) Intelligence test
(b) Aptitude test
(c) Personality test
(d) Interest test
3. Employment interview
4. Reference and
Background checks
5. Selection decision
6. Medical Examination
7. Job Offer
8. Contract of Employment
 1. Preliminary Screening

The selection process begins with screening and

detailed investigation of the applicants. While
scrutinizing the applications, the managers
compare the qualifications and capabilities
specified in application form with the requirement
of vacant job position. The applications proving
the match between both only will be considered
for the next stage in selection and the remaining
unsuitable applications will be rejected.
 2. Selection Tests

 The types of test to be conducted depend on the requirement of the

organization. The common types of tests conducted by the
organizations are given below:
 (a) Intelligence test: This is one of the important psychological
test used to measure the level of IQ, person’s learning ability or the
ability to make decisions and judgments, person’s alertness in terms
of reasoning, memory, comprehension etc.
 (b) Aptitude test: These tests are designed to measure the
potential of individuals to acquire new skills, capacity to develop in
future.
 (c) Personality test: This test provides clues to a person’s
emotional balance, his/her reactions, maturity and value system etc.
It has to be designed and implemented with utmost care.
 (d) Interest test: Interest test is used to know the pattern of
interest or involvement of a person in a particular kind of work.
 3. Employment interview
 Interview is a formal, in-depth conversation conducted to evaluate
the applicants’ suitability for the job. There are some qualities
which can be judged only through a face-to –face talk with
candidates. The interviewer is to seek information about the
interviewee by asking job related and general questions
 4. Reference and Background checks

 Many employers request names, addresses and telephone

numbers of references of at least two responsible persons for the
purpose of verifying information and gaining additional
information on an applicant. Previous employer, University
professors, known persons can act in references
 5. Selection decision
The personnel department will send the list of the
selected candidates who have passed tests,
interviews and reference checks. But, the final
selection has to be made by the concerned
departmental manager. Because, it is he who is
responsible for the performance of the new
employee.
 6. Medical Examination
After the selection decision, the candidate is
required to undergo medical fitness test conducted
by the panel of doctors prescribed by the
organization. If the result of medical fitness is
positive, then only job offer will be given.
 7. Job Offer
 Joboffer is made through a letter of appointment. Such a letter
generally contains date by which the appointee must report on
duty. The appointee must be given reasonable time for
reporting.
8. Contract of Employment
Itis a written document consisting of job title,
duties, responsibilities, date when continuous
employment starts and the basis of calculating
service, rates of pay, allowances, working
hours, leave rules, grievance procedures,
disciplinary procedures etc. It has to be signed
by the employee
4. Placement and Orientation
 Placement means putting the selected candidates on right
job. It is the process of matching the candidates with the
most suitable jobs. The placement is done after
considering various factors such as skills required,
location of job, employees knowledge, marital status,
home town, interest etc.
 Placement and orientation

Orientation means introducing and familiarizing

newly appointed candidates through following
manners:
Brief presentation about the history of the company
Introduction of superiors, subordinates and his
colleagues
Taken around the work place
Familiarizing the policies, rules and regulations
Various facilities available.
 5. TRAINING AND
DEVELOPMENT
Meaning of Training:-
 Training is the process of improving the job
knowledge and skills of employees so as to enable them to perform
well. It is an organized activity wherein people acquire knowledge
and skills for doing a specific job

Meaning of Development
Development is the process by which managers and executives
acquire not only skills and competence in their present jobs but
also capabilities for future tasks of increasing difficulty and scope.
It refers to overall growth of the employees.
Distinction between Training and
Development
TRAINING
1. Teaching technical skill
only
2. Suitable technical staff
3. Development of skills
already possessed by the
employees
4. Focuses on present
requirement of organization
5. Superior takes initiative
DEVELOPMENT
Teaching technical, human
and conceptual skills.
Suitable for managerial
staff
Development of hidden
qualities of employees
Focuses on future
requirement of organization.
Individual takes initiative
Benefits of Training and Development
 Training is systematic learning always better than hit and trial
methods which lead to wastage of efforts and money.
 It enhances employee productivity both in terms of quantity and
quality, leading higher profits.
 It equips the future manager who can take over in case of
emergency
 It increases employee confidence and reduces absenteeism and
employee turnover
 It helps in obtaining effective response to fast changing
environment.
 Improved skills and knowledge lead to better career of the
individual.
 Increased performance by the individual helps him to earn more.
 It makes the employee more efficient to handle machines which
will reduce the accidents.
 It increases the satisfaction and morale of employees
 Training methods
The methods of training are broadly
categorized into two groups:
1. On the job training methods
2. Off the job training methods
 1. On the job training methods

(a) Apprenticeship programmes

(b) Coaching
(c) Internship training
(d) Job rotation
2. Off the job training methods
 (a) Class room lectures and conferences
 (b) Films
 (c) Case study
 (d) Computer modeling
 (e) Vestibule training
 (f) Programmed instructions