Topic 7 Staffing. - Lecture notes 1 PDF

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STAFFING Introduction. In a new enterprise, the staffing function follows the planning and organizing function. In the case of running an enterprise, staffing is a continuous process. So, the manager should perform this function at all times. The staffing function includes recruitment, selection, training, development, transfer, promotion and compensation of personnel. It is obvious that the management must ensure a constant availability of sufficient number of efficient executives in an enterprise for the efficient functioning of the enterprise. The selected personnel should be physically, mentally and temperamentally fit for the job. Staffing is a basic function of management. Every manager is continuously engaged in performing the staffing function. He is actively associated with recruitment, selection, training and appraisal of his subordinates. These activities are performed by the chief executive, departmental managers and foremen in relation to their subordinates. Thus, staffing is a pervasive function of management and is performed by the managers at all levels.

Meaning of Staffing. Staffing

is

the

process

of

hiring

eligible

candidates

in

the organization or company for specific positions. In management, the meaning of staffing is an operation of recruiting the employees by evaluating their skills, knowledge and then offering them specific job roles accordingly. Staffing can be defined as one of the most important functions of management. It involves the process of filling the vacant position of the right personnel at the right job, at right time. Hence, everything will occur in the right manner. 1

It is a truth that human resource is one of the greatest for every organization because in any organization all other resources like- money, material, machine etc. can be utilized effectively and efficiently by the positive efforts of human resource. Therefore it is very important that each and every person should get right position in the organization so as to get the right job, according to their ability, talent, aptitude, and specializations so that it will help the organization to achieve the pre-set goals in the proper way by the 100% contribution of manpower. Thus it can be said that staffing is an essential function of every business organization. From this, we can understand what is Staffing? Nature of Staffing Function. 1. Staffing is an important managerial function- Staffing function is the most important managerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function. 2. 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. 3. 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. 4. The

basis

of

staffing

function

is

efficient

management

of

personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc.

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5. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. 6. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers, etc. In small companies, the top management generally performs this function. In medium and small scale enterprise, it is performed especially by the personnel department of that concern. Importance of Staffing Efficient Performance of Other Functions For the efficient performance of other functions of management, staffing is its key. Since, if an organization does not have the competent personnel, then it cannot perform the functions of management like planning, organizing and control functions properly. Effective Use of Technology and Other Resources What is staffing and technology’s connection? Well, it is the human factor that is instrumental in the effective utilization of the latest technology, capital, material, etc. the management can ensure the right kinds of personnel by performing the staffing function. Optimum Utilization of Human Resources The wage bill of big concerns is quite high. Also, a huge amount is spent on recruitment, selection, training, and development of employees. To get the optimum output, the staffing function should be performed in an efficient manner. 3

Development of Human Capital Another function of staffing is concerned with human capital requirements. Since the management is required to determine in advance the manpower requirements. Therefore, it has also to train and develop the existing personnel for career advancement. This will meet the requirements of the company in the future. The Motivation of Human Resources In an organization, the behavior of individuals is influenced by various factors which are involved such as education level, needs, socio-cultural factors, etc. Therefore, the human aspects of the organization have become very important and so that the workers can also be motivated by financial and non-financial incentives in order to perform their functions properly in achieving the objectives. Building Higher Morale The right type of climate should be created for the workers to contribute to the achievement of the organizational objectives. Therefore, by performing the staffing function effectively and efficiently, the management is able to describe the significance and importance which it attaches to the personnel working in the enterprise. Staffing Process - Steps involved in Staffing 1. Manpower requirements- The very first step in staffing is to plan the manpower inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern.

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2. Recruitment- Once the requirements are notified, the concern invites and solicits applications according to the invitations made to the desirable candidates. 3. 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. 4. Orientation and Placement- Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmers. Placement takes place by putting right man on the right job. 5. Training and Development- Training is a part of incentives given to the workers in order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed by providing them extra benefits of in depth knowledge of their functional areas. Development also includes giving them key and important jobs as a test or examination in order to analyze their performances. 6. Remuneration- It is a kind of compensation provided monetarily to the employees for their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees. 7. Performance Evaluation- In order to keep a track or record of the behavior, attitudes as well as opinions of the workers towards their jobs. For this regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employees in a concern.

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8. 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. Functions of Staffing 1.

The first and foremost function of staffing is to obtain qualified personnel for different jobs position in the organization.

2.

In staffing, the right person is recruited for the right jobs; therefore it leads to maximum productivity and higher performance.

3.

It helps in promoting the optimum utilization of human resource through various aspects.

4.

Job satisfaction and morale of the workers increases through the recruitment of the right person.

5.

Staffing helps to ensure better utilization of human resources.

6.

It ensures the continuity and growth of the organization, through development managers.

Recruitment After determining the required number and kind of manpower in an organization; the next step in the procurement of person is to locate the sources where the required number of employees can be available and to attract them towards the organizational; The process of attracting people to apply job is known as Recruitment; Definitions of Recruitment.

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Recruitment; is the process of searching for prospective candidate and stimulating and encouraging them to apply for the jobs in an organization; OR Refer to the process of informing people/ applicant from within or outside the organization to apply for the anticipated job offered; Recruitment needs in an organization can be influenced by three main things; 1. Planned Needs; this can be influenced by the changes in organization and retirement policy; 2. Unexpected Needs; this can be arise due to Resignation, Death, Accident, and Illness happen within an organization; 3. Anticipated Needs; refer to those movement in human resource which an organization can predict by studying trends in the internal and external environments; Characteristics/ Features of Recruitment 1. Recruitment is a Process; it is an activity that require a series of steps, it starting with manpower planning; 2. Recruitment is a positive function; it seek to develop a pool of eligible person required by an organization; 3. Recruitment is a Linking activity; as it bring together those with jobs (employer) and those who seeking jobs (prospective employee); 4. Recruitment is an important function; it make possible to acquire the number and types of employee necessary in an organization; 5. Recruitment is Pervasive function; all organization engage in recruiting activity. But the number of employee depend on the size, nature and environment; 6. Recruitment is a Complex job; too many factor affect the process example image of the organization, nature of the job offered, organizational policies, working condition and compensation level.

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7. Recruitment is a two –way process; it involve recruiter and recruitee; STEPS INVOLVING IN RECRUITMENT Recruitment of personnel for an organization require steps to follow in order to get the right number of employee to an organization; These steps include the following; 1. Manpower needs(HRP); 2. Job analysis; 3. Advertisement;         

Company Name & Description Core Values Benefits Offered Location Job Title Department Industry Pay Description of Duties Demand (specific skill set, knowledge, experience or training required for the job)  Qualities that are nice to have and would be an added advantage 4. Submission of Application; 5. Interview 6. Selection; 7. Placement; 8. Orientation and Induction

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Sources of Recruitment of Employees: 

Internal Source of Recruitment and



External Sources of Recruitment

Sources of Recruitment of Employees. The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of recruitment process. The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources. (A) Internal Sources: Best employees can be found within the organization… When a vacancy arises in the organization, it may be given to an employee who is already on the pay-roll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can be informed of such a vacancy by internal advertisement. Methods of Internal Sources: The Internal Sources Are Given Below: 1. Transfers: Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers. 2. Promotions: Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities and more pay. The higher positions falling vacant may be filled up from within the organization. A promotion does not increase the number of persons in the organization. A person going to get a higher position will vacate his present position. Promotion will motivate employees to improve their performance so that they can also get promotion. 3. Present Employees: 9

The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates. The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility of those recommended by them and also ensure of their proper behavior and performance. Advantages of Internal Sources: The Following are The Advantages of Internal Sources: 1. Improves morale: When an employee from inside the organization is given the higher post, it helps in increasing the morale of all employees. Generally every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements). 2. No Error in Selection: When an employee is selected from inside, there is a least possibility of errors in selection since every company maintains complete record of its employees and can judge them in a better manner. 3. Promotes Loyalty: It promotes loyalty among the employees as they feel secured on account of chances of advancement. 4. No Hasty Decision: The chances of hasty decisions are completely eliminated as the existing employees are well tried and can be relied upon. 5. Economy in Training Costs: The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings economy in training costs.

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6. Self-Development: It encourages self-development among the employees as they can look forward to occupy higher posts. Disadvantages of Internal Sources: (i) It discourages capable persons from outside to join the concern. (ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization. (iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.

(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable. Inspite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may be employed on the basis of their recommendation and not suitability. (B) External Sources: The External Sources of Recruitment means hiring people from outside the organization. In other words, seeking applicants from those who are external to the organization. The external sources are discussed below: Methods of External Sources: 1. Advertisement: It is a method of recruitment frequently used for skilled workers, clerical and higher staff. Advertisement can be given in newspapers and professional journals. These advertisements attract applicants in large number of highly variable quality.

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Preparing good advertisement is a specialized task. If a company wants to conceal its name, a ‘blind advertisement’ may be given asking the applicants to apply to Post Bag or Box Number or to some advertising agency. 2. Learning institutions: Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spotted during the course of their studies. Junior level executives or managerial trainees may be recruited in this way. 3. Recommendation of Existing Employees: The present employees know both the company and the candidate being recommended. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them. 4. Casual Caller; Due to wide spread of unemployment in the country, many jobseeker visit the offices of well-known companies on their own in order to obtain job 5. Recruitment Agencies: Professional bodies have come into existence which provides their services to the enterprises for recruitment and selection of employees. These agencies specialize in the supply of particular categories of workers. Merits of External Sources: 1. Availability of Suitable Persons: Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training and education. 2. Brings New Ideas:

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The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position. 3. Economical: This method of recruitment can prove to be economical because new employees are already trained and experienced and do not require much training for the jobs. Demerits of External Sources: 1. Demoralization: When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns. 2. Lack of Co-Operation: The old staff may not co-operate with the new employees because they feel that their right has been snatched away by them. This problem will be acute especially when persons for higher positions are recruited from outside. 3. Expensive: The process of recruiting from outside is very expensive. It starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to be repeated. Suitability of External Sources of Recruitment: External Sources of Recruitment are Suitable for the Following Reasons: (i) The required qualities such as will, skill, talent, knowledge etc., are available from external sources. (ii) It can help in bringing new ideas, better techniques and improved methods to the organization.

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(iii) The selection of candidates will be without preconceived notions or reservations. (iv) The cost of employees will be minimum because candidates selected in this method will be placed in the minimum pay scale. (v) The entry of new persons with varied experience and talent will help in human resource mix. (vi) The existing employees will also broaden th...