CHAPTER - 6

STAFFING
PLUS TWO BUSINESS STUDIES
CHAPTER - 6
STAFFING
 The foundation of any
organisation is the talented and
hard-working people, who are
the principal assets of any firm.
 After Planning and organising, the
next function of management is
staffing. Basically, staffing fills the
positions as shown in the
organisation structure.
In the simplest terms, staffing is
‘putting people to jobs’.
Organisation structure
 Meaning:
The term staffing is concerned with the
recruitment, selection, placement,
training, growth and development of all
the members of the organization.

Placing the right person on the right

job at the right time is called staffing.
IMPORTANCE
OF
STAFFING:
1.Helps to find out
Competent personnel:
Staffing helps to
find out competent
persons for various
jobs.
2.Higher performance:
Staffing helps to increase
performance by placing the right
person on the right job.
3.Ensure Survival and growth:
Staffing helps ensure survival
and growth of the business by
providing proper training.
 4.Optimum utilisation of manpower:
It ensures optimum utilisation of
human resources by avoiding over
staffing or shortage of staff.
Staffing as a part of
Human Resource
Management (HRM)
STAFFING AS A PART OF
HUMAN RESOURCE MANAGEMENT (HRM):

Staffing is concerned
with filling various
positions or jobs in the
organization with the
suitable personnel.
STAFFING AS A PART OF
HUMAN RESOURCE MANAGEMENT (HRM):

Emergence of
Trade Union
movement led to the
concept of Labour
Welfare Officer.
STAFFING AS A PART OF
HUMAN RESOURCE MANAGEMENT (HRM):

Factory system demanded

the appointment of large
number of employees. This
led to the emergence
Personnel Manager.
Personnel
Manager.
STAFFING AS A PART OF
HUMAN RESOURCE MANAGEMENT (HRM):

In Modern world, as its

scope increased, it treated
as Human Resource
Management [HRM].
HUMAN RESOURCE DEPARTMENT

Recruitment,
Selection,
Development ,
Training
STAFFING AS A PART OF
HUMAN RESOURCE MANAGEMENT (HRM):

HRM includes many specialized

activities and duties like Recruitment,
Selection, Development , Training &
development of employees etc.
 STAFFING PROCESS
(STEPS IN STAFFING)
Staffing Process(Steps in staffing)
The process of staffing consists of several
interrelated activities. The steps are given below-
1.Estimating the manpower requirements
2.Recruitment
3.Selection
4.Placement and orientation
5. Training and development
6.Performance appraisal
7.Promotion and career planning
8.Compensation
1.Estimating the manpower requirements:
(Human Resource Planning/ Man Power
Planning):
It is concerned with forecasting the future
man power needs of the organization for
various categories of activities over a specified
period.
It is a process of determining the number
and types of staff required by an organisation.
 WE
NEED
200
EMPLOYEES
& 15
MANAGERS

TOP LEVEL MANAGERS

MEETING
Manpower Planning includes -
a)Workload analysis :
Assessment of the number and types
of human resources needed.
b)Workforce analysis :
Reveal the number and type
available.
2.Recruitment:
Recruitment is the
process of searching for
prospective employees
and stimulating them to
apply for jobs in the
organization.
 In other words, recruitment
means discovering the source of
employees.
Recruitment is called a positive
process because it encourages
maximum number of people to
apply for jobs.
3.Selection:
Selection starts where recruitment ends.
Selection is the process of choosing the
most suitable persons from the applicants.
The selection is done through a
process, which involves test, interviews etc.
10000 APPLICATIONS
Selection is
a negative
process as
more
candidates
are rejected
SELECTED ONLY 15
than hired.
4. Placement and orientation:
Assigning a position or post to newly
selected employee is known as
Placement.
Placement refers to the employee
occupying the position or post for
which the person has been selected.
 PLACEMENT
FINANCE MANAGER CUSTOMER CARE MANAGER

SELECTED
TWO NEW
EMPLOYEES
&
POSTED TO
TWO
DEPARTMENTS
 Orientation / Induction is the
process of introducing and
familiarising newly appointed
candidates with their jobs , work
groups and the organization.
 WELCOME
TO
OUR
FAMILY

NEWLY SELECTED EMPLOYEES

5. Training and Development:
Imparting knowledge
and skill to do a job
through instruction is
known as training.
 Development is a much
wider concept compared to
training.
Developments refers to
growth of an employee in
all aspects.
6. Performance Appraisal:
Evaluating an employee's current or past
performance against pre determined standard
is known as performance appraisal.
It includes defining the job, appraising
performance and providing feedback.
 MANAGER EMPLOYEES
WILL CHECK
THEIR PERFORMANCE
7.Promotion and career planning
Promotion refers to the shifting of
an employee from a lower position to
a higher position with higher status,
greater responsibilities, better
facilities and better pay.
They must encourage employees to
grow & realise their full potential.
PROMOTION

NOW H E I S
ACCOUNTSMANAGER

ABHIJITH
ACCOUNTANT
8.Compensation:
Compensation refers to all
forms of pay or reward given to
the employees.
It means what an employee
receives in return for their efforts
contributed to the organisation.
 COMPENSATION

DIRECT INDIRECT
FINANCIAL FINANCIAL
PAYMENTS PAYMENTS
It includes -
Direct financial payments like
wages, salaries
and
Indirect payments like employer
paid insurance, medical facilities etc.
Direct financial payments are of two
types - time based or performance based.
A time based plan means salary and
wages are paid either daily, weekly or
monthly.
Performance based plans means salary/
wages are paid according to piecework.
Staffing Process (Steps in staffing)- CONCLUSION
The process of staffing consists of several
interrelated activities. The steps are given below-
1.Estimating the manpower requirements
2.Recruitment
3.Selection
4.Placement and orientation
5. Training and development
6.Performance appraisal
7.Promotion and career planning
8.Compensation
ASPECTS
ASPECTSPECTS
OF
OFOF
STAFFING
ST
STAFF
AFFING
ING
 There are three important elements of staffing
recruitment, selection and training. These are now
discussed in detail.
RECRUITMENT
 Recruitment is the process of searching
for perspective employees and stimulating
them to apply for jobs in the organisation.
It is the activity of publishing
information about vacancies in the
organisation and inducing the prospective
candidates to apply for jobs.
 In other words, recruitment means
discovering the source of employees.
Recruitment is called a positive process
because its aim is to increase number
of applications.
 Steps in recruitment
1.Identifying the different sources of
labour supply
2.Assessing the quality of these sources
3.Choosing the best sources of labour
supply
4.Inviting qualified candidates for the job.
 SOURCES OF
RECRUITMENT
Sources of recruitment:
There are two sources of
recruitments-
1.Internal sources
2.External sources
1.Internal
sources
1.Internal sources :
Recruitment from within the
organization is called internal sources of
recruitment.
There are two important sources of
internal recruitment, namely
(a) Transfers
(b) Promotions
 W ITHIN THE
ORGANISATION
(a) Transfers:
Transfers involve shifting an employee from
job to another, one department to another
having similar status and responsibility.
Transfer is a good source of filling the
vacancies with employees from over-staffed
departments. It is practically a horizontal movement
of employees.
Eg: Transfer of Purchase manager from Eranakulam brach to Kannur branch
 2022 MAY 2022 APRIL

ON M AY 2022 SHE
W AS TRANSFERRED
FROM KANNURBRANCH
TO ERANAKULAM BRANCH

NISHITHA
NISHITHA
CLERKAT
CLERKAT
KANNUR
ERANAKULAM
(b) Promotions:
It refers to shifting one employee from a
lower position to a higher position having
higher status, greater responsibility, better
facilities and more pay.
Promotion is a vertical shifting of employees.
It has a great psychological impact over the
employees.
Eg: A Sub Inspector(SI) is promoted to Circle Inspector(CI)
 NOW H E I S
ACCOUNTSMANAGER
SALARY53000

ARUN
ACCOUNTANT
SALARY22000
Merits of Internal Sources:
1. It motivates the employees for better
performance
2.This is a more reliable way of recruitment
since the candidates are already known to the
organisation.
3.It is an economical source of recruitment.
4.It is less time consuming process.
5.Adjustment of surplus staff is possible.
6.Cheaper than external sources.
Demerits of Internal sources:
1. No infusion of new blood : It discourages capable persons
from outside joining the organization.
2.The employees become lethargic (lazy) when they are sure
about time- bound promotion.
3.A new enterprise cannot use internal sources of
recruitment.
4.The spirit of competition among the employees may be
hampered.
5.Frequent transfers and unscientific promotion causes
reduction in productivity of the organisation.
6. Not suitable for the posts requiring innovation.
7. It may encourage favouritism and nepotism.
2.External
sources
O UTSIDE TH E O RGANISATIO N
2.External Sources :
It refers to the recruitment of
candidates from outside the
organization.
Following are the most popular
methods of external sources of
recruitment
a)Advertisement
b)Employment Exchange
c) Placement Agencies and Personnel Consultants
d) Campus Recruitment
e)Recommendations of Present Employees
f)Labour Contractors
g)Advertising on Television
h) Web Publishing
i)Direct recruitment
j) Casual callers from waiting list
a)Advertisement:
Advertising in newspapers and journals
is a common method of encouraging
people to apply for jobs.
b)Employment Exchange:
Employment Exchanges run by the
government are an important sources of
recruitment of personnel.
Job seekers get themselves registered with
these exchanges . The name of these persons
will be supplied to business concerns on the
basis of their requisition.
https://eem ploym ent. kerala. gov. in/
c)Placement Agencies and Personnel
Consultants:
Placement Agencies compile bio-data of
a large number of candidates and
recommend suitable names to their clients.
Management consultancy firms help the
organisations to recruit technical,
professional and managerial personnel.
Placement Agencies in Calicut
d)Campus Recruitment:
Recruitment from
educational institutions is a
well-established practice of
businesses. This is referred
to as campus recruitment.
e)Recommendations of Present
Employees:
Many firm encourage their employees to
recommend the names of their relatives
and friends to fill the vacant job position.
Such appointments are usually done at
lower levels.
 MUBASHIR RECOMMEND NIHAL FOR NEW JOB

NIHAL
HIS
MUBASHIR FRIEND
EXISTING
EMPLOYEE
f)Labour Contractors:
Unskilled and semi-skilled
labours may be recruited through
labour contractors.
They are ready to supply
required number of workers on
payment of commission.
g)Advertising on Television:
Now a days the practice of
telecasting of vacant posts over TV
is developing. The details about the
job and organization are published.
h)Web Publishing:
There are certain sites like
www.naukri.com, www.jobstreet.com
etc. provide detailed information for
both job seekers and job providers.
i)Direct recruitment:
Under this method a notice is published on
the notice board of the enterprise regarding job
vacancies. The candidates are assembled on a
particular date and the selection is done on the
spot.
Such workers are known as casual or ‘badli’
workers and they are paid remuneration on
daily wage basis.
FACTORY
NOTICE BOARD

TO DAY
HIRING
20 PERSO N S
j)Casual callers from waiting
list:
Most of the employers are
maintaining a database with
details of applications received
from casual applicants and it
may be used as a source of
recruitment.
 MERITS OF
EXTERNAL SOURCES
Merits of External Sources:
1. Qualified Personnel:External sources make
available qualified and trained personnel.
2. Wider Choice: It provides wider choices
3. Fresh Talent: It brings brings new blood in
the organisation.
4. Competitive Spirit: It increases competitive
spirit in the organization
 LIMITATIONS OF
EXTERNAL SOURCES
Limitations of External Sources:
1.Dissatisfaction among existing staff: Existing
employees may feel that their chances of promotion
are reduced.
2.Lengthy process: Recruitment from external
sources takes a long time.
3.Costly process: It is very costly to recruit staff from
external sources.
4.Uncertainty: It is very difficult to predict the
behaviour of an outsider.
Difference between
Internal Sources &
External Sources
SELECTION
 SELECTION
Selection begins where recruitment
ends.
Selection is the process of identifying
and choosing the best person out of a
number of prospective candidates for a
job.
10000 APPLICATIONS
Selection is a
negative process
as more
candidates are
rejected than
hired.
Towards this purpose,
the candidates are
required to take a
SELECTED ONLY 15 series of employment
tests and interviews.
PROCESS OF
SELECTION
(STEPS IN
SELECTION)
Process of Selection / (Steps in Selection):
The important steps in the process of selection are as
follows-
1. Preliminary screening:
2. Selection 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:
Preliminary screening helps
the manager to eliminate
unqualified or unfit candidates
based on the information
furnished in the application
forms.
Preliminary Screening
2. Selection Tests:
A Selection test is a
mechanism to measure the
level of ability, knowledge,
interest, aptitude etc. of a
particular candidate.
Important Tests Used for the
Selection of Employees(Selection
Tests):
(a) Intelligence Tests:
(b)Aptitude test:
(c)Personality test :
(d)Trade test :
(e)Interest test:
(a)Intelligence Tests:
This is one of the important
psychological tests used to measure the
level of intelligence quotient of an
individual.
(b)Aptitude test:
To measure individual’s potential for
learning new skills. It indicates the
person’s capacity to develop.
(c)Personality test :
Personality test is conducted to find
out the human behaviour of the
candidate.
(d)Trade test :
These tests measure the existing
skills of the individual.
(e)Interest test:
This test is conducted to find out the
type of job in which candidate has more
interest as every individual has fascination
for some job than the others.
3.Employment interview:
It is a face to face, formal and in-
depth conversation between the
applicant and the selection committee.
It helps to find out the personality,
self confidence, intelligence and
aptitude of candidate.
INTERVIEW
4.Reference and background checks:
Reference is a source from which
useful information abut the candidate
can be collected.
Many employers request names,
addresses, and telephone numbers of
references for the purpose of verifying
information.
5.Selection decision:
The candidate who pass the test,
interview and reference check are
included in the selection list and
the managers select the most
suitable candidates from the list.
6.Medical examination:
It is a stage to check the
medical fitness of the
applicant.
Fit
For
Job
7.Job offer:
After a candidate has cleared all
the above steps ,he is formally
appointed.
He will be issued an appointment
letter and is asked to join before a
specific date.
APPOINTMENT
LETTER
8.Contract of employment:
It refers to signing of
contract of employment
between employer and
employee.
CONTRACT OF EMPLOYMENT
 TRAINING &
DEVELOPMENT
TRAINING

DEVELOPMENT
 TRAINING:
Training means to impart information
and skills through instructions.
It is a method of increasing the
knowledge, skills and aptitudes of an
employee for performing a particular job.
Its purpose is to enable them to do their
job better.
TRAINING:
DEVELOPMENT
Development:
Development refers to overall
growth of the employee in all aspects.
Development is much wider in
concept as compared to training.
Development aims at the overall
development of a person
Education:
Education is confined to
theoretical learning in
class rooms.
It is mainly to develop a
sense of reasoning and
judgement
IMPORTANCE OF
TRAINING
AND
DEVELOPMENT
Importance of Training and Development
Training and development help both the
organisation and the individual
1. Benefits to the organisation:
a) Helps to reduce wastage of efforts and
money.
b) It enhances productivity of organisation.
c) Training helps to develop future
managers
d)Training increases employee morale.
e) It helps in obtaining effective response
from employees.
2. Benefit to the Employees:
a) Improved knowledge and skill leads to
better career
b) Increased performance of employees
helps them to earn more.
c) Efficient handling of machines reduces
accidents.
d) Training increases the satisfaction and
morale of employees.
 DIFFERENCE
BETWEEN
TRAINING AND
DEVELOPMENT
 Training Development

It is a process of increasing It is a process of learning and

knowledge and skills. growth.

It is to enable the employee to It is to enable the overall

do the job better. growth of the employee.

It is a job oriented process. It is a career oriented process.

It is a short term process It is a long term process

TRAINING
METHODS
Training Methods:
Training methods are broadly categorised
into two groups:

1.On-the-Job Training
2. Off-the- Job Training
1.On-the-Job Training:
In this method a worker learns by doing the work
under the guidance of a supervisor , i.e. ,‘Learning
while doing.’The worker learns his work in the actual
work environment. Different methods of on the job
training are -
a. Apprenticeship Programmes:
b. Coaching:
c. Intern-ship Training:
d. Job Rotation:
worker learns his work in the actual work environment

ON THE JOB TRAINING

a. Apprenticeship Programmes:
Here the trainee is put under the supervision
of an experienced person in this field.
Trainee receive stipend while learning. People
who want to enter skilled works, e.g, plumbers,
electricians, mechanic etc. are required to
undergo such training.
FACTORY
a. Apprenticeship Programmes:
Here the trainee is put under the supervision
of an experienced person in this field.
Trainee receive stipend while learning. People
who want to enter skilled works, e.g, plumbers,
electricians, mechanic etc. are required to
undergo such training.
b. Coaching:
In this method, the senior
manager guides and instructs
the trainee as a coach. Here,
teaching about the job is
emphasized rather than doing
the job.
COACH
SENIOR NEW
STAFF WORKER
c. Internship Training:
A vocational institute enters into an
arrangement with a business enterprise to
provide practical knowledge to its students.
For example, MBA students are directed to
undertake project work in business enterprises,
engineering students are sent to big industrial
enterprises to gain practical work.
 KASARAGOD COMPANY
Apex college of Management
4 MONTHS
TRAINING
d. Job Rotation:
It involves shifting the trainee
from one department to another
or from one job to another. This
enables the trainee to gain a
broader understanding of all jobs
of the business.(Integrated
knowledge)
 FINANCE
DEPARTMENT

MARKETING
DEPARTMENT PRODUCTION
DEPARTMENT
2. Off-the-job training:
It is a process of ‘learning before doing’.This is
concerned with imparting training to employees
outside the actual work place. Different methods of off-
the -job training are-
a).Classroom lectures / conferences :
b).Film Shows :
c).Case Study:
d).Computer Modelling:
OUTSIDE
e).Vestibule training:
f). Programmed instructions:
 KATUKUKKE
COMPANY

TRAINING
NOT
ALLOWED
HERE

OUTSIDE
a).Classroom lectures /
conferences :
It is suitable to
convey information,
rules, procedures and
methods.
b).Film Shows :
Showing films are
also a very effective
method in certain
cases.
c).Case Study:
In case study, trainees are given an
imaginary/real problem or situation. They
are asked to find out the solutions to the
problems given to them.
Case study method is very much useful
for imparting decision making skills.
 FIND OUT WAYS
TO CONTROL
STRIKE IN FACTORY

NEW EMPLOYEES- (TRAINEES)

d).Computer Modelling:
With the help of computer
programming the realities
of the job are imitated. The
trainees get an opportunity
to familiarise the situation.
e).Vestibule training:
An artificial training centre is
known as Vestibule School.
Here the work environment –
similar to the actual conditions
TRAINING
is created artificially and the CENTRE
trainee is placed there to train
without any pressure.
FACTORY(REAL WORK ENVIRONMENT)
f). Programmed instructions:
Here, the information to be obtained by a
trainee is broken into meaning full units. The
trainees goes through these units in the
sequential order i.e., simple to complex.
It will help the trainees to acquire the
knowledge very easily.
 MODULE 4
MODULE 3
MODULE 2

MODULE 1