CHAPTER FIVE

STAFFING THE ORGANIZATION

Definition
•Staffing is the process of obtaining and maintaining capable and
competent people to fill positions in organizational structure.
•Organizations require people who have different knowledge, skills
and experiences to fill various positions to attain organizational
objectives.
The staffing process
•Staffing involves a series of steps. They are
– HR planning (manpower planning)
– Recruitment and selection
– placement and Employment decision
– Induction and orientation (socialization)
– Training and development
– Compensation and performance appraisal (PA)
– Separation, Promotion, Transfer and Layoffs
1. Human Resource (HR) Planning
• HR planning is the starting point in the process of staff
procurement (locating); and refers to the
determination of the number and quality of people to
be employed.
• It involves assessing current HR of the organization,
future needs and ways to fill the gap.
 The three distinct activities of HR planning are:-
– Evaluating the existing work forces
– Forecasting the future needs of HR and
– Ensuring the availability of workers when needed.
 Points to be considered in HR planning
• HR planning is accomplished through the
analysis of
– Internal factors/ environment of current
and expected skill needs, vacancies and
departmental expansions and reductions
– External factors/ environment of Labor
market, government regulations, labor
unions, etc.
 The main points to be considered in HR planning are:-
1. Current assessment
• Man power planning usually starts with the review of current
resource status. HR inventory or skill inventory is prepared for this
purpose.
• And making job analysis is another important part in assessing the
current human resources.
• HR/ Skill inventory allows management to assess what talents and
skills are currently available.
• Job analysis is defines the total jobs within the organization; and
the required skills and behavior necessary to perform these jobs.
• Job analysis is the systematic process of determining the skills,
duties and knowledge required for performing jobs in an
organization
• It has two components job description and job
specification.
• Job description
• the statement showing what the job holder does,
how he does, why he does a particular job
• accurately shows the job content, working
environment, the terms and conditions of
employment, etc…
• The job description is a written statement
that explains the title, duties, responsibilities,
working conditions, and other aspects of a
specified job.
 Job specification
• states the maximum acceptable qualifications
of the mandatory employee so that he will be
assigned the particular task.
• Identifies the skills, knowledge, and abilities
required to perform particular jobs effectively.
• Job specification, on the other hand,
describes the skill, knowledge, work
experiences required to perform the job.
2. Future assessment
• HR planning estimates the future personnel
requirements i.e. HR forecasting.
• Forecasting depends on the nature of the
organization, products it produces and the state
of growth of an organization.
3. Development of future program.
• HR planning has to compare the current capabilities,
skills of the employees with the future requirements
and to design future program to fill the gap.
4. Career development
• Career/ profession/ development of employees is an
essential step in HR planning.
2. Recruitment and selection

A. Recruitment is the process of searching for
employees and stimulating and encouraging them to
apply for the job vacancies in the organization.
• It acts as a bridge between employees and the
organization.

Sources of recruitment
•Organizations can attract candidates from internal and
external sources, i.e. candidates within and outside the
organization.
•It is classified into internal & external sources.
Internal sources
• Internal source of staff recruitment is the process
of filling a vacancy by a person already employed
by the organization.
• It includes the existing employees and ex-employees
who left the organization for various reasons.
• Advantages/ merits
– enhances employees moral
– easy to evaluate existing employee than the new one.
– minimum time be spent on training
– less costly (costliness)
– employees are more reliable
– much cheaper getting familiar employees
•Disadvantages/ limitations 
–Internal sources restrict the nourishment of new ideas.
–results organizational in-breeding
–the existing employees become outdated and ultimately
this sources may dry up
–narrow down selection options
–Promotions are limited to seniority, ignoring merit.
–This leads to ill-feeling and conflict in the organization.
External source
•External source refer to the sources of job application
from outside of an organization.
•Potential candidates totally come from the external
environment.
• They are new entrants/ fresh products,
educated but unemployed section of the
society, employees of other organizations,
retired persons, etc.
Commonly used external sources are:
1. Employment agencies are employment
exchanges and private employment
agencies.
• They Maintain a detailed record of job seekers
and refer the candidates with appropriate
qualification to the required employers.
2. Advertising:
• Commonly placed in daily news papers,
magazines, trade and professional publications.
• It is popular method, but time consuming and
heavy expenditure is involved in recruiting.
3. Educational institutions
• This is the method representing recruiting on
college and university.
• Advantages external source
– helps to get best professionals available in the
market with required experience, skills,
education, etc.
 – recruitment is done including all sections
of the society
– provides new/ fresh blood to be pumped
into the organizations personnel who are
creative
– helps to attract specialists
• Disadvantages
– more expensive - needs adequate time and
money on training and induction
– chance of brain drain or to be recruited by
other organization
• The vacancy to be announced should incorporate at least
two statements
A. Job description
• It is the written record of duties, responsibilities and
requirements of a particular job.
• It gives information about the title, location, duties,
working conditions, and it is the description of job quality
characteristics.
B. Job specification statement
• It is the statement giving the requirements of personnel
who should be made responsible for a given job.
• It gives information regarding the characteristics,
qualities (physical and mental/ psychological),
qualifications, experiences, etc of the worker.
Methods of Recruitment
1. Direct method of recruitment
– Recruiters directly contact the prospective
/potential/ employees and attract them. i.e.
2. Indirect method
– Organizations encourage prospective employees
to apply for vacancies through advertisements
in newspapers, magazines, journals, etc..
3. Third party method
– Private employment agencies, those carry out
recruitment process of an organization for a fee.
B.Selection
• Selection is the process of identifying and choosing those
applicants who can successfully perform a job from the available
candidates.
 Selection processes
1. Filling/ Completion of the formal application form or
Application blank
2. Preliminary Screening/ interview
3. Employment interview/ Final interview
4. Employment tests/ Selection tests
Common selection tests are:
A. Intelligence test.
• designed to assess a person’s general mental capacity
in respect to memory, verbal comprehension
(intellectual capacity) and quantitative skills.
B. Aptitude test
• designed to assess a person’s specific job
skill and abilities, and the potential for
acquiring such competencies.
C. Personality test
• designed to assess a variety of personal
traits and characteristics including
attitudes, values and beliefs.
D. Interest test
• designed to assess person’s occupational
interests in terms of likes and dislikes for
different job opportunities.
F. Physical examination
G. Reference letters/ Reference check and
background investigation
H. Final selection and communication (Job
offering)
Interview
• Interview is the most widely used selection tool.
• It is a complex process in which the interviewer
tries to form an opinion about the interviewee's
personality, intelligence, technical competence
(ability), interests, attitudes, etc…. through face
to face interaction.
Types of interviews
1. Patterned or structured interview
• is a very common type of interview in which
the focus is on asking structured
predetermined (prearranged) questions in
a strict sequence.
2. Non-directive or free interview
• Are unstructured and unplanned.
• General and unstructured questions are
asked and the candidate is given adequate
time to answer in detail.
3. Depth or action interview.
• is semi-structured, where structured questions are asked
in intervals of unstructured questions or conversations.
• It is a combination of patterned and free interview styles.
4. Group or discussion interview
• is the interview held for more than one candidate.
• The group of candidates is given a topic or a problem for
discussion and observers identify the persons who are
having good leadership skills, etc…
5. Panel or board interview
• is an interview in which the number of interviewer
would be many and the interviewee will be one.
• The panel (board) consists of expertise of different areas.
6. Stress interview
•is in which the interviewer pretends to be hostile
(unfriendly) and provokes (aggravates) the candidate by
asking questions rapidly by criticism (dissatisfaction) and
trying to annoy (anger) him.
3. Decision making and Placement
•The candidates who have been selected should be given
placement letters that state their employment and specific
positions, and other employment related matters.
4. Induction and orientation (socialization)
•When the candidate is selected and offered a job, it is
necessary to introduce the new employee to the
organizations philosophy, rules, policies, etc…..then the
new employee begins his work.
 Induction:- Is the process of familiarizing a new
employee with the overall organizational
environment through the provision of adequate
information to bring about change in new
employee’s expectation, behavior, and attitude in
order to assure the best match with organizational
interest.
 Orientation:- Designed to enable new employee to
familiarize with working environment through the
provision of adequate information.
• It involves discussion between a manager and
employee regarding the job assignment including
specific location, rules and procedures of the work
and the materials, equipment needed to do the job.
 The purposes of induction and orientation to:-
• Reduce the start-up cost.
• Reduce anxiety (worry)
• Decrease turn over
• Save time to supervision
5. Training and Development
• Having qualified and well trained personnel to
perform various jobs is a basic necessity for any
organization.
• Training and development programs include various
activities that enhance the awareness of employees in
policy issues and procedures, educate them to job
skills, and develop them for future advancement.
Training
• Training is necessary to changing technology,
up-production of skills and knowledge of
workers, the need to increase the productivity
of the workers, etc.
• Training is any process by which the aptitudes
(talents), skills and abilities of employees to
perform specific jobs are increased.
• Training is the act of increasing the
knowledge and skills of employee for doing a
particular job; the trainees in improving their job
performance and better apply their knowledge .
 Importance of training
• increased productivity
• improvement in employee moral
• availability for the future personnel
needs of the organization
• improvement in health and safety
• reduced supervision
• personal growth
• organizational stability
Steps in designing effective training
1. Need assessment
– assess the needs for training based an organizational
analysis, person analysis and task analysis.
2. Assessment of employee readiness
– Consider whether employees are motivated to learn.
3. Creation of learning environment
– Lay a foundation for successful training by
creating the conditions under which employee will
learn best.
4. Ensuring transfer of training
– Ensure that employee will be able to apply what
they have learned to their jobs.
5. Selection of training methods.
– Consider the possible training methods and
select those that will be most appropriate.
6. Evaluation of the training program.
– Evaluate the outcome of the training program.
 Methods of training
1. On-the- job training;- is the most commonly used
method of training carried out on the job.
 Its approaches are:
– Job rotation/ position rotation
– Coaching
– Apprenticeship (Traineeship)
2. Off-the- job training
• Off- the- job- training takes place outside the actual
workplace but attempts to stimulate actual working
conditions.
• It refers to training conducted away from the actual
work setting.
The techniques kind of off-the-job training are:-
– lectures
– conferences
– group discussions
– case studies
– role play
– Programmed instruction etc….
3. Vestibule/ Simulated training
• Vestibule/ Simulated training is a combination of
off and on-the-job training methods.
• It is a method where the identical machines and
equipments that are used on the work floor are
installed in the training center and also an effort is
made to implicate work atmosphere found on the
actual floor.
Development
• The scope of development is wider than training.
• It covers performance improvement activities and
enhance personality, gain better attitudes, values
and behavior.
• Development is a systematic process of education,
training, and growing by which a person learns and
applies information, knowledge, skills, attitudes and
perceptions.
• Development refers to the organization’s efforts to
help employees acquire knowledge, skills and
behavior that improve their ability to meet changes in
job requirements and customer needs.
• To develop employee’s competency, organization can
use the combination of
– formal education,
– assessment,
– job experience and
– interpersonal relationships
6. Compensation and Performance appraisal
 Compensation
• It is the reward for the work done by an employee and it
should be balanced to keep the parties, the employer and the
employee happy and satisfied.
• It also includes the money paid as reimbursement.
 Factors affecting compensation policies:-
– Organizational ability to pay
– supply and demand of labor
– Prevailing (Dominant) market rate
– Cost of living
– Productivity
– Bargaining (Negotiating) power of the workers union
– Job requirements
– Managerial attitude
Types of incentives

Intrinsic (Essential) rewards
•rewards which a worker receives for himself and are
totally dependent on the kind of work done by him. i.e. self/
individual incentives.
•They could be in the form of participation in decision
making, job freedom, more responsibility, more interesting
work assignment, opportunity for personal growth, etc …

Extrinsic rewards
•are incentives (motivations) given for all employees of the
organization.
• They can be direct compensation or indirect
compensation.
Modes of payment
There are two basic methods of payment.
– payment by time and
– payment by output
Performance Appraisal (Assessment) (PA)
• Performance appraisal is the process of determining and
communicating to an employee how he/she is
performing the job.
• It is evaluating employee’s performance of the job
assigned, and used to determine the extent (degree) to
which an employee is performing the job effectively.
• Performance is a result of employee’s efforts,
abilities and role perception (awareness).
• PA involves the formal evaluation of an employee
performance.
• It helps:
– To determine who shall receive merit increases.
– To determine training needs
– To identify employee to be transferred.
– To provide adequate feedback to each
individuals for his performance.
– To improve or change behavior toward some
more effective working habits.
 – To provide useful information and data for the manager
to judge the future job assignment of employee.
– To improve the efficiency of an organization through
improved work performance.
– To reduce favoritism (discrimination) in making
managerial decision.
Methods of PA
• Ranking (Level) method:
• Person to person comparison
• Grading (grouping)
• Forced Distribution system
• Graphic Scales.
• Check List
• Forced – choice description
• Descriptive (Expressive) essay
• Field review (assessment) Method.
• Selection critical incidents (happenings)
Performance appraisal processes
• They are steps to be followed during the
evaluation of workers performance.
• Establishing performance Standards
• Communicating Standards to employees
• Measurement of the actual performance.
• Comparison of the actual performance with that
of the standards
• Communication of the results
• Corrective actions
Who does the appraisal?
• In most cases the immediate supervisor does
the appraisal.
• But an organization can use different appraisers.
This could be :-
• the immediate supervisor of the employee
• group appraisal
• peer appraisal and
• self appraisal
Problems in PA are:-
 Rater’s lack of knowledge, experience and skill,
 rating an employee based on an overall impression (feeling)
resulting from one or few incidents (happenings),
 providing a rating of average or around the midpoint for all
qualities,
 rating influenced by the most recent behaviors,
 allowing past performance of appraisal rating to unjustly
influence current ratings,
 rater’s ineffectiveness in observing and documenting
performance, and
 Vagueness (ambiguity) of the criteria and standards of
performance.
7. Separation, Promotion, transfer and layoffs
 Separation
• Separation is the discontinuation of the relation
between employee and the employer.
• It is the final HRM function.
• Separation can be initiated by the employers like
– mandatory retirement; dismissal; layoff
• the employees like
– resignation; voluntary retirement; quit
The agreement
 when the contract ends; or they can also be
caused by things outside the will of both the
employer and the employee (accidents, death)
Causes for separation are:-
– Retirement (withdrawal)
– Layoff (inactivity)
– Dismissal (removal)
– permanent disability
– Resignation (acceptance)
– Quit (leave)
– outplacement
Promotion
• Promotion is the advancement of an employee to
a better job.
• Upgrading is a practice related to promotion, but
it amounts to a small scale advance in status.
• It is the movement of an employee to a more
responsible job within the same occupational unit
and with a corresponding increase in pay.
• Both upgrading and promotion are ways of
recognizing and developing the abilities of
employees within the organization instead of filling
skilled and responsible positions from outside.
Transfer
• Transfer is the movement of an employee from one job to
another on the same occupational level of wage/ salary.
Layoff
• Layoff occurs when there is lack of business or
budget limitation/ shortage.
• It is forced reduction of the number of employees.
• It is the most frequent type of separation of employees
from the employed workforce.
Quits
• Quit refers to the voluntary movement of the worker
from the organization such as health problem
resignation.
8. Employment Relationships
• Employment relation is the relationships existing
between employees and employers.
The contents of employer-employee relations are
expressed in employment contract that include
elements as:-
 amount and method of payment
 hours of work
 holidays and holiday pay
 provisions for sickness, injury, and entitlement to pay
 terms and conditions of pensions rights
 disciplinary rules and procedures
institutional rights of inions and management
terms and conditions of termination of the
contract
enforcement and administration of
agreements, and others
The three elements of the subject of
employee relations are:-
Collective bargaining
• A two-way negotiation process between
employees and employers to reach an
agreement on matters of employment.
2. Grievance (complaint) or Protest handling
• Employers should have established grievance
procedures and also known methods of processing
grievances.
• Grievance procedure consists of an orderly series
of steps followed to resolve disputes.
3. Disciplinary action
• Refers to the application of penalties that lead to
the inhibition of undesired behavior.
• Among the penalties available are oral reprimand/
warning; written reprimand; loss of privileges
(rights); fines (penalties); layoff; demotion;
suspension, and dismissal
9. Major principles (guides of) staffing
•The principle of the objective of staffing
•The principle of Staffing
•The principle of Job definition
•The principle of open competition
•The principle of management training and
development
•The principle of training objectives
•The principle of Continuing development
•Thank you