Staffing Class 12 Notes Business Studies

Staffing is the managerial function of filling and keeping the positions in the organization’s structure. It involves, “Finding the right person for the right job having the right qualifications, doing the right job at the right time.”

Advantages of Staffing

1. Filling the roles by obtaining competent personnel: There will be no use of job positions unless and until employees occupy these and it is through staffing function only that employees are appointed to fill the vacant job.
2. Placing the right person at the right job: Staffing ensures higher performance by placing the right person on the right job through proper recruitment and selection.
3. Growth of enterprise: By appointing efficient staff, staffing ensures the continuous survival and growth of the enterprise.
4. Optimum utilization of human resources: Through manpower planning and job analysis, we can find out the number of employees and the type of employees required in the organization.
5. Helps in competing: Two organizations can easily acquire the same type of physical and financial resources but what helps one organization to win over the other is the efficient staff.
6. Improves job satisfaction and morale of the employees: The staffing function does not end only with the appointment of employees. It includes training, promotion, compensation, etc. All these activities help in motivating the employees and boosting their morale of the employees.

Staffing as a part of Human Resource Management (HRM)

Human resource management involves determining the organization’s need for human resources, recruiting and selecting the best employee, training, developing, compensating and rewarding the employees.

Managing a human component of an organization is the most important task because the performance of an organization depends upon how well this function is performed.

An organization grow and the number of persons employed increases, a separate department called the ‘Human Resource Department’ is formed which has specialists in managing people.

Note: Staffing is a part of human resource management.

Staffing Process

1) Estimating manpower requirements

Estimating manpower requirements means knowing how many persons and of what type (i.e. educational qualification, skills, prior experience, personality characteristics, etc.) in the organization to fill the various job positions created while designing the organizational structure.

Mainly two types of analysis are done in this step as follows:

1. Workload Analysis: It means analyzing the number and types of human resources required for the performance of various jobs and the accomplishment of organizational objectives.
2. Workforce Analysis: It means analyzing the existing employees already occupying the job positions and how many of them are overburdened or underburdened.

A comparison is done between the above two analyses to find out a number of employees required.

2) Recruitment

It refers to the process of inducing people to apply for a vacant job position in the organization. The requisite positions may be filled up from within the organization or from outside.

After assessing the number and type of employees required, the manager tries that more and more people should apply for the job so that the organization can get more choices and select better candidates.

3) Selection

It refers to the process of identifying and choosing the best candidate to fill a vacant job position. The selection is done through a process, which involves tests, interviews, etc.

In selection, the number of selected candidates is less than the number of rejected candidates which is why the selection is also called a negative process.

4) Placement & Orientation

Placement refers to occupying the position/post by the candidate for which he/she is selected. After selection, the employee is given an appointment letter and is asked to occupy the vacant job position.

Orientation is introducing the selected employee to other employees and familiarizing him/her with the rules and policies of the organization.

5) Training & Development

To improve the competence of employees and to motivate them it is necessary to provide training and development opportunities for employees so that they can reach the top and keep improving their skills.

Training is the process of learning new skills and application of knowledge. On the other hand, development refers to the learning opportunities designed to help employees grow. It means the growth of an individual in all respects.

6) Performance Appraisal

After taking training and performing the job for some time there is a need that employee’s performance must be evaluated.

Performance appraisal means evaluating the performance of an employee against some predetermined standards.

7) Promotion and Career Planning

Promotion refers to being placed in a higher job position with more pay, job satisfaction, and responsibility.

By offering opportunities for career advancement to their members, organizations are not only able to attract but also retail their talented people.

8) Compensation

It 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 & bonuses and indirect payments like employers paid insurance and vacations.

Recruitment

The recruitment function is very important because the end result of the recruitment function is receiving a large number of applications to make selections from.

Recruitment is a positive process as it seeks to attract suitable applicants to apply for available jobs in the organization. There is no rejection in this process.

Types of Recruitment

There are two types of recruitment as follows:

1. Internal Sources
2. External Sources

Internal Sources of Recruitment

Under internal sources, the vacant job positions are filled by inducing the existing employees of the organization and no outsiders are permitted in internal sources.

Under internal sources of recruitment, there are two ways:

• Transfer: It involves shifting an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee.
• Promotion: Promotion refers to shifting an employee from one job position to another with a higher level of authority. In promotion, the authority carries higher responsibilities, facilities, status and pay.

External Sources of Recruitment

When candidates from outside the organization are invited to fill the vacant job position then it is known as external recruitment.

There are many methods of external sources of recruitment:

• Direct Recruitment: Under this, organizations paste notices at the gate of their office or factory stating the vacant job positions. Those people who are interested in the job can walk in for an interview. e.g. sweeper, peon, etc.
• Casual Callers: Generally, large organizations maintain an application file in which they keep all the pending applications that the job seekers leave with reception, sometimes the applications of suitable candidates who were not selected in the previous year’s selection process are also kept in the application file.
• Media Advertising: The most common and popular method of external recruitment for vacant job positions is advertising. It may bring in a flood of responses, and many times, from quite unsuitable candidates.
• Employment Exchanges: Government employment exchanges act as middlemen between job seekers and organizations that have vacant job positions. The job seekers leave their bio-data and details of their qualifications with the employment exchanges.
• Placement Agencies and Management Consultants: Placement agencies provide nationwide service of matching personnel demand and supply of workforce. Management consultancy firms help organizations recruit technical, professional, managerial personnel, etc.
• Campus Recruitment: Sometimes, the senior managers of the organizations visit various professional colleges, and technical institutes to get fresh graduates.
• Recommendations from Present Employees: Many firms encourage their employees to recommend the names of their relatives, friends, and other known people to fill the vacant job positions.
• Advertising on Television: A new trend of external recruitment is telecast on various channels regarding vacant job positions.
• Web Publishing: On the internet, there are certain websites specifically designed to provide information regarding job seekers and companies which have vacant job positions. For example: naukri.com.
• Labour Contractors: Labour contractors maintain close contact with labourers and can provide the required number of unskilled workers at short notice.

Directing Class 12 Notes Business Studies

Difference between Internal Recruitment and External Recruitment

Selection

Selection can be defined as discovering the most promising and most suitable candidate to fill up the vacant job position in the organization.

Following are the steps in the selection process:

1. Preliminary Screening: Preliminary screening is done to eliminate unqualified and misfit candidates based on information supplied in the application form.
2. Selection Test: The organizations prefer to conduct certain tests to find out the practical knowledge of the candidates. These are the important tests:
   a) Intelligence Test
   b) Aptitude Test (ability to learn new skills)
   c) Personality Test
   d) Trade Test (measures the existing skills)
   e) Interest Test
3. Employment Interview: The candidates who qualify for the test are called for interviews. The interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job.
4. Checking References and Background: If the candidate qualifies for the interview then the organization prefers to check with the references about the personal character of the candidate.
5. Selection Decision: The candidates who pass the test, interview and references check are included in the selection list. The views of the concerned manager will be generally considered in the final selection.
6. Medical Examination: Before giving an appointment letter the candidates selected are sent for the medical fitness test. A job offer is given to the candidate after being declared fit in the medical examination.
7. Job Offer: The applicants who clear the medical test are given job offers through a letter of appointment. In the letter, the date of joining, terms and conditions of the job, etc are mentioned.
8. Contract of Employment: After the job offer has been made and the candidate accepts the offer, certain documents need to be executed by the employer and the candidate.

Differences between Recruitment and Selection

Training and Development

Training means equipping the employees with the required skills to perform the specific job. It aims to improve the performance of employees in their current job or prepare them for any intended job.

Development refers to the overall growth of the employee. It focuses on personal growth, learning opportunities and the success of employees’ development.

Importance of Training for the Organization

• Reduced Learning Time: A trained employee takes less time in learning the job as compared to an untrained employee.
• Better Performance: The performance of trained employees is always better than the performance of untrained employees.
• Attitude Formation: The training and development aim at moulding the employees so that they can develop positive attitudes for the organization.
• Managing Manpower Needs: Some organizations have specialized techniques of production and the ready staff is not available. In that case, the organizations hire untrained people and train them with the required skills according to the organization’s needs.

Benefits of Training to the Employees

• Better Career Options: Improved skills and knowledge due to training bring better career options for employees.
• Earning More: Improvement inefficient performance helps the employees to earn more.
• Fewer Chances of Accidents: Training makes employees more efficient so there are fewer chances of accidents.
• Increases Morale: Training increases the satisfaction and morale of employees.

Methods of Training

There are mainly two methods of training:

1. On-the-job training
2. Off-the-job training

On-the-job Training

When the employees are trained while they are performing the job then it is known as on-the-job training. Under this method, the employees learn by doing.

This method is suitable only for technical jobs and the advantage of this method is employees can learn practical problems while working on the job.

Popular Techniques of Training Under On-the-job training are as follows:

• Apprenticeship Training: The master-worker performs the job and the trainee (learner) observes him/her performing. It is suitable for people seeking to enter skilled traits. For example: Plumbers, Electricians, etc.
• Internship: An internship is an agreement between professional institutes and the corporate sector where professional institutes send their students to various companies to work and learn the work.
• Induction or Orientation Training: Induction or orientation is a process of receiving and welcoming an employee when he/she first joins the company.

Off-the-job Training

Off-the-job training means training the employees by taking them away from their work position which means employees are given a break from the job and sent for training.

This method of training is more suitable for managerial job positions as conferences, and seminars are held to train the managers.

Popular Technique of Training under Off-the-job training method:

Vestibule Training

When experience and delicate machinaries are involved then employers avoid using on-the-job methods of training.

A dummy model of machinery is prepared and instead of using original machinery employees are trained on a dummy model.

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