MANAGERIAL STAFFING FUNCTION 2024

UNIT- 6

MANAGERIAL STAFFING FUNCTION

Introduction: Staffing is the process of procuring suitable personnel for manning various
positions created by the organizing process. Acquisition of adequate and appropriate kinds of
personnel is one of the most crucial, complex, and continuing managerial functions. The greatest
competitive advantage of an organization lies in the quality of its human resources and the
effectiveness with which they are utilized and developed. The quality of personnel in an
organization significantly depends on its staffing policies and procedures. This function is now
assuming greater significance around the globe as the business enterprises are growing in size
and becoming technologically more sophisticated, and as traditional management practices are
giving place to professional management.

Staffing is a continual and multi-step process. It includes preparing an inventory of personnel

available and identifying the gap between manpower required and available, identifying the
sources from where people will be selected, selecting people, training and developing them,
fixing financial compensation, appraising them periodically, etc. Staffing includes the following
common managerial activities

1. HUMAN RESOURCES PLANNING /MANPOWER PLANNING

Eric Velter defines human resources planning or manpower planning as “the process by which a
management strives to have the right number and the right kinds of people at the right places and
at the right time to do things which result in both the organization and the individual receiving
the maximum long-range benefit”
Human resources planning is a multi-step process consisting of the following elements.

1. Deciding objectives
2. Estimating future human resource requirements,
3. Job analysis,
4. Auditing presents human resources, and
5. Developing a human resource plan.

The human resource planning system is depicted in the following figure

Deciding Estimating Future Job Analysis Auditing Auditing

objective H.R Requirement Present H.R Present H.R
s
Human Resource Planning Procedure

1. Deciding objectives: - the objectives may be laid down either for a short term, that is for
one year for example, or for a long term such as starting a new business, expanding the

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market, producing a new product, or developing its own sales force. However, the
ultimate resource objectives of human resource planning are one of matching or fitting
employee abilities to organizational requirements with an emphasis on future instead of
present arrangements.
2. Estimating future human resource requirements:

The management must estimate the structure of the organization at a given point in the
future. For these estimates, the number and types of employees required, both for existing
departments and for new vacancies, have to be determined. In determining the requirements
of human resources, the expected losses due to labor turnover, dismissals, promotions,
transfers, retirements, deaths, layoffs, and leave of absence should be considered. Then the
real shortage or surplus will be found out.

3. Job analysis:
It is the process of collecting, analyzing, and coordinating information about jobs.
The primary purpose of job analysis is to
- Determine the duties and responsibilities of the job.
- Determine the kind of person needed to fill each job
- The outcomes of job analysis are job description and job specification.
Aspects of Job Analysis:
I. Job description
It is a written statement of what the job holder does, how it is done, and
why it is done.
It describes the content of the job.
It is a written document of the duties and responsibilities of a job.
Example: Job description of a marketing manager may read:
Duties include hiring, training, and supervising sales staff responsibilities for the
overall performance of the department and report to a zonal manager.
II. Job specification
Focuses on the person
It states the minimum acceptable qualification and experience that a job
holder must possess to perform a given task effectively and efficiently.
It identifies the knowledge, skills, and abilities needed to do the job
effectively.
Example: A job specification for a marketing manager might read:
- The position requires: MBA (specialization in marketing)
- Eight years experience in sales and a minimum of three years
supervisory experience,
- Achievement motivated and dynamic individual with well-developed
interpersonal skills.
4. Auditing present human resources:
Now the next step is to determine the present supply of manpower resources through “skills
inventory.” A skills inventory contains data about each employee’s skills, abilities, work

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preferences, etc. It helps in determining and evaluating the quality and quantity of the present
human resources of the organization.
5. Developing a human resource Plan: - the last step is to develop and implement the
human resource plan, which consists of finding out the sources of labor supply to make
effective use of these sources. The first thing to be decided is whether the person is hired
from within the organization or to be obtained from an outside source. The best policy,
which is followed by most organizations, is to fill up higher vacancies by internal sources
such as promotions and transfers and lower-level positions by recruitment from external
sources. The personnel manager should have a thorough knowledge of the labor market.
Which sources in the labor market will be tapped depends upon the policy of a firm,
positions of labor unions, and the government regulations.

2. RECRUITMENT
Recruitment is concerned with the identification of sources from where the person can be
employed and motivating them to offer employment.
Elippo has defined recruitment as follows:
“Recruitment is the process of searching for prospective employees and stimulating them to
apply for jobs in the organizations.”
According to this definition, recruitment is a prospecting job where organizations search for
prospective employees. But in practice, prospective employees also seek out prospective
employees.
Recruitment: is the process of locating, identifying, and attracting capable
applicants.
Recruitment: is also making potential candidates interested in particular job
positions and apply for them.
SOURCES OF RECRUITMENT
The source of recruitment or labor supply may be grouped into two categories:
1. Internal sources, and
2. External sources
1. Internal sources
Internal sources include personnel already on the payroll of the organization. Whenever any
vacancy arises, somebody from within the organization may be looked into. These internal
sources are of two kinds:
(i) Promotion:-
Promotion means shifting an employee to a higher position carrying higher responsibilities,
facilities, status, and salaries. Various positions in an organization are usually filled up by the
promotion of existing employees based on merit or seniority or a combination of these

(ii) Transfer
Transfer refers to a change in job assignment. It may involve promotion or demotion, or no
change in terms of responsibility and status. A transfer may be either temporary or permanent

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depending on the necessity of filling jobs. Promotion involves upward mobility while transfer
refers to the horizontal mobility of employees.
(iii) Reviewing of personnel records
(iv) Inside moonlighting i.e. paying bonuses of different types for internal
workers assigned to perform a certain job for a short period.
Merits of Internal sources:
 Motivational and job satisfaction advantage (provision of continuity
employment)
 Enhancing morale and creation a sense of security among workers.
 Less expensive – minimizes training or orientation cost
 Easy to apply – performance of employees can be easily evaluated, etc.
Demerits of Internal sources
 Limits the pool of talent available to the organization
 Discourages new blood from entering the organization
 Successful people are promoted until they finally reach a level in which they
are unable to perform adequately.
2. External sources
It is used/applied when
When an organization has exhausted internal sources;
When internal sources are found to be unsuitable; or
When it becomes necessary to fill vacant positions with new employees.
External sources refer to prospective candidates outside the enterprises. They usually include
new entrants to the labor force, the unemployed, and people employed in other organizations
seeking a change. Following are the most common external sources:
1. Advertisements
Advertising in newspapers and periodicals, TV and radio, and the internet is one of the most
important methods of recruiting managerial, technical, and lower-level personnel. The company,
which needs manpower, advertises details about the job requirement, salary, perks duties, and
responsibilities.
2. Employment Consultancies
Some companies use the services of consultancy firms for the recruitment of management and
technical personnel. These consultancy firms register the details of the job- seekers and forward
them to their client companies after initial screening.
3. Gate hiring
In countries where there is a large number of unemployed people, it is usual to find job seekers
thronging the factory gates. Whenever workers are required, the people who are availed at the
gate are recruited in the necessary number. This method can be used safely for unskilled
workers.
4. On-Campus recruitment
Some companies conduct interviews for the final year students at the campuses of reputed
educational institutes, universities, and colleges for appointment after they complete the courses.

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5. Labor Unions
In many organizations, labor unions are regarded as sources from which to recruit manpower.
This facility increasing the sense of cooperation and in developing better industrial relations.
6. Waiting lists
Many organizations prepare to wait for lists of the candidates who have gone through the
recruitment processes but who have not been employed for the time being, when the need arises,
such candidates may be called for employment.
7. Unsolicited applications
These are fresh or experienced graduates who send their requests for appointment against a
vacancy if any. By appointing such casual callers, the employer saves the selection and training
costs.
8. Labor Contractors
Unskilled and semi-skilled workers are recruited through labor contractors on a daily wage
basis. Through this method, the employer saves not only the selection and training costs but also
the expenditure in the form of pension, insurance, and fringe benefits.
9. Ex-employee
They are the persons who had been worked in the company and have left the organization
and now eager to return. Such employees having good records may be preferred. They will
require less initial training.
10. Deputation
Organizations, especially government organizations, take people on deputation from other
organizations for a certain period. For example, people from civil, and defense serves may be
employed by the organizations to set things right.
Decruitment /Derecruitment: It is a labor supply controlling approach
commonly applied when it becomes necessary to reduce the organization’s surplus
labor force.
Methods of Decruitment
 Attrition – not filling openings created
 Early retirement – retiring older employees before their normal retirement
date providing incentives.
 Firing – permanent involuntary termination of employment.
 Lay off – temporary involuntary termination of employment
 Reduced workweeks – having employees work fewer hours per week or
perform their jobs on a part-time basis.

3. SELECTION
When an organization gets applications from more candidates than the actual requirement, the
organization has to devise methods through which it can divide these applications into categories
of those who will be offered employment and those who will not be offered employment. Since
more candidates will be rejected than those hired through this process, this is also called a
negative process in contrast with the positive program of recruitment. L, M. Prasad has defined
selection as follows:

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“Selection is a deliberate effort of the organization to select a fixed number of personnel from a
large number of applicants.”The quality of the personnel selected by an organization will
depend, to a great extent, on the effectiveness of its selection techniques and procedures.

Techniques of selection
Various techniques of personnel selection are in use in industries around the world. Techniques
used by a particular organization depend on several factors including its size, resourcefulness,
and staffing objectives. Selection techniques may differ according to the kind of personnel that
are to be selected. For instance, techniques used for the selection of managerial personnel ought
to be different from those used for the selection of clerical or operative personnel. Generally
speaking, one or combinations of more than one of the following techniques are used for
selecting employees.
Techniques of selection:
Various techniques of personnel selection are in use in industries around the world. Techniques
used by a particular organization depend on several factors including its size, resourcefulness,
and staffing objectives. Selection techniques may differ according to the kind of personnel that
are to be selected. For instance, techniques used for the selection of managerial personnel ought
to be different from those used for the selection of clerical or operative personnel. Generally
speaking, one or combinations of more than one of the following techniques are used for
selecting employees.
1. The application Blank:-
The application blank provides factual information needed for evaluating the candidate’s
suitability and it is also used as a basic record of his data if he is hired. Broadly speaking,
companies seek information through application blanks in the areas such as personal data
including age, sex, etc., family and educational backgrounds, employment records, and
references.
2. Preliminary or Initial Interview:
The preliminary or initial interview is often held in the case of “walk-in” applicants or “at-the-
gate” candidates. This interview is usually of short duration and is aimed at obtaining certain
basic information to identify the obvious misfits or unqualified. The candidate is asked about his
educational skill, knowledge, job experience, minimum salary acceptable, etc.
3. Employment Tests
Most of the large companies use or another kind of employment test. Smaller companies,
generally, do not use testing techniques in their selection procedure and place greater reliance on
interviewing. Verities of tests are used as selection tools. These may be classified as (i)
intelligence tests, (ii) aptitude tests, (iii) achievement tests, (iv) interest tests, and (v) personality
tests, and (v) personality tests.
Intelligence tests:-
Intelligence tests are a measure of the individual’s capacity for reasoning, verbal comprehension,
numbers, vocabulary, word fluency, etc. They are used to eliminate candidates who are
insufficiently intelligent for efficient job performance.

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Aptitude Tests
Aptitude tests measure the individual’s capacity or latent ability to learn a job if he is given
adequate training. It is used to determine their ability for effective job performance after the
completion of the training period.
Achievement tests

Achievement tests are used to ascertain whether the individual knows what he claims to know.
When a candidate claims that he knows some trade or art, these tests are administered to verify
the veracity of his claim. For example, a typing test may measure the typing performance of a
typist in terms of speed, accuracy, and efficiency.

Interest tests
These are used to predict whether a candidate is interested in a particular job or not. They
measure interest in outdoor activities, mechanical, computational, scientific, persuasive, artistic,
literary, musical, clerical, social services, etc. It is assumed that a person who is interested in a
job can do much better than a person who is not interested.

Personality tests
Personality tests are designed to measure such personality characteristics as emotional stability,
tolerance for conflict, capacity to get along, maturity, and psychotic tendencies. These are
generally used for the selection of personnel for executive jobs or for jobs that require dealing
with people. However, they need a trained expert in their administration and evaluation.

4. Interviewing

Interviewing is the most widely used selection technique by all kinds of organizations.“The
interview is a selection technique that enables the interviewer to view the total individual and to
appraise him and his behavior.”Thus, interviewing helps an interviewer to evaluate a candidate’s
intangible personality variables that are not measured through tests and application blanks. If
handled properly, it can be a powerful technique in achieving accurate information and getting
access to material otherwise available. The interview may follow a structured pattern or an
unstructured pattern.

 Structured or guided or patterned or directive interviewing:

In these techniques, a list of questions based on job specifications is prepared in advance. The
interviewer puts questions from the list and the interviewee is supposed only to answer the
questions from the list and the interviewee is supposed only to answer the questions put by the
interviewer. But this technique imposes serious limitations in drawing out a candidate’s
personality. It is thus not very effective in measuring the intangible personality variables of
potential employees.

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 Unstructured or unguided or nondirective interviewing

The interviewer using this technique, instead of asking too many questions, initiates the
interviewee and creates a kind of permissive atmosphere in which the candidate talks, usually
quite revealingly about his experiences, aspirations, fears, weaknesses, etc. This kind of
interviewing requires a high degree of interviewing skills and it can, therefore, be conducted only
by trained interviewers.

5. Reference Checks
References checks serve as an important selection technique if conducted properly. The
applicant is asked to mention the names and addresses of his former employers and also of two
or three persons known but not related to him. The refers may be connected by mail, telephone,
or face-to-face interview. While selecting the method of contacting the refers, the time and cost
involved should be taken into consideration.

6. Background investigation
It is the verification of information obtained from the candidate’s blank application
form, selection interview, and resume.
7. Arrangement for physical examination
Checking the candidate’s health condition is essential before placing him in a
particular job. By this, the employee’s physical fitness should be assured.
8. Placement
o The candidate may submit a fitness–certificate after the medical examination
is over.
o It is the final step of the selection process.
o An employment letter specifying the place of work, gross payment, hours of
work, etc. is given to the candidate.
4. Induction AND ORIENTATION
Objectives of Orientation/ Induction:
o To reduce the initial anxiety
o To familiarize new employees with the job, the work unit, and the
organization as a whole
o To facilitate the outsider-insider transitions
o To familiarize the employee with the goals and his/her new co-workers
o To introduce the employee to the relevant policies, rules, and regulations.
Orientation is the process of introducing the new employee to the company. It has been reported
by many organizations that half of the new employees quit within the first six months because
they are introduced to their jobs in a bad manner. Rather than leaving him to stumble his way
through the organization, a new employee must properly and systematically be shown to his job,
introduced to his fellow employees and supervisor, and helped in making such personal
adjustments as necessary to his effective performance in the work team. He must be introduced
to the company and its philosophy, its place in the industry or economy, its major policies, etc,

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He is also given all necessary information about the cafeteria, lunch period, rest pauses, etc. This
helps the new employee in feeling at home with his peers and the job.

If the size of the organization is large, the new employee may be given a handbook that describes
the employer, principal products, rules and regulations, and prerequisites and privileges affecting
employees. Some large organizations in the United States show to the new employees' motion
pictures depicting the history and operations f the firm, the purpose of which is to begin the
building up of some pride and interest in the organization.

A complete orientation program also consists of a follow-up after a few weeks to ascertain how
well the new employee has adjusted himself with his job and environment. This also provides an
opportunity to clarify any misunderstanding or removing any misapprehension. But if an
employee is found maladjusted even after that, it may be symptomatic of wrong selection or
wrong placement. However, the follow-up interview enhances employee satisfaction by
demonstrating to him the company’s interest in his welfare.

5. TRAINING AND DEVELOPMENT

The following are some of the factors that should be considered when planning
training programs:
 Training must be based on organizational and individual needs.
 Training should address problems that need to be solved
 Training programs should be based on sound theories of learning
 Training must be evaluated and modifications in training programs must be
made whenever necessary.
Purposes of Training include

 Improving the quantity of output

 Improving the quality of output
 Lowering the cost of waste and maintenance
 Lowering the number of accidents
 Lowering staff turnover and absenteeism
 Increasing job satisfaction.

Training and development are part of the learning process involving the development of an
individual’s socially, intellectually, and physically
In an organization, the capability of a person depends on his ability to work and the type of
training he receives. Training inputs may vary from on-the-job experience to off-the-job
training. The training activates have achieved high importance in recent years because of their
contributions to the achievement of organizational objectives. According to Edwin Flipped,
“Training is the act of increasing the knowledge and skills of an employee for doing a particular
job.”So, Training is nothing but imparting specific skills for particular purposes.
Methods of Training
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“Training methods are means of attaining the desired objective in a learning situation.”Different
categories of people-operative, supervisors managers-have different training needs and they
should be trained by different methods. These methods can be grouped into:
1. On-the-job training methods
2. Off-the-job training methods

1. On-the-job training methods

In these methods, people can learn by actually working on jobs and these methods can be
suitable for all types of employees. These methods are as follows:

On specific job
This is the most common form. A person can learn while he is put on a specific job and develop
skills over a while. He may receive personal coaching and guidance from a person.
Coaching – Refers to the assignment of a specific person to act as either an
instructor or resource person for the trainee.
Position rotation (cross-training): It is a process of training employees by
rotating them through a series of related tasks.
A person is given jobs in various departments to broaden his background, which helps in
developing an integrated view of organizational functioning

Special projects, tasks forces, etc.,

A special project, task forces, committees, etc., were assigned to people to learn the jobs special
performed in these assignments and also to learn how to work with different types of persons.
Apprenticeship
The trainee is put under the supervision of a person who is experienced in his field. Nowadays,
many organizations have to take trainees or apprentices under Apprenticeship Act.
Vestibule schools:
The concept of vestibule schools is that people will learn and develop skills while working in
situations similar to what they will face after they are put on actual jobs. People were put in the
organization in actual operations. Vestibule schools offer various advantages to both the trainees
and the organization as given below.
 Since the training is given off the actual workplace, the trainer has no other work other
than teaching. Hence, he can concentrate on teaching
 It does not interfere with the regular work.
Likewise, these schools have certain demerits also as chalked out below:
 Training is conducted in artificial conditions
 It is an expensive affair. Hence, small firms cannot resort to this type of training.
 This method is not suitable to rain one or two employees.

2. Off-the-job training methods

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In these methods, a trainee has to leave his place of work and devote his entire time for training
purposes. During this period, the trainee does not contribute anything to the organization. These
methods can be followed in the organization itself or the trainee is sent away for training courses
to other specialized institutions. These institutes conduct training programs for various levels of
managers. Various methods of off-the-job training are as follows:

 Special courses and lectures

It is used to expose partisans to concepts and theories, basic principles, and pure and applied
knowledge in any subject area. It is aimed at creating an awareness of the knowledge of
fundamentals.’

 Conferences

In the above lecture method, communication is one way, from trainer to trainee. To overcome
this limitation, conferences are arranged in which participants discuss the various problems faced
by them at the workplace and try to find solutions or improved methods.

 Case studies

A case is a written description of an organization containing information about its various

aspects, vis., its history, external environment, internal operation, financial structure, etc.

It is a method of training where the trainees are given cases and are given to
identify the basic problem and suggest a solution

In the case method, cases are discussed in groups. An instructor asks each member of a group to
present his analysis and also to comment on others’ analyses. Members are also required to
answer the queries of other members and instructors. This process helps to develop the
analytical skills of managers and hence they can improve their decision-making process.

 Role-playing (psychodrama, social-drama)

This technique is used in groups where various individuals are given roles of different managers
who may be required to solve a problem or arrive at a decision. At the end of the role-playing
session, there will be a critique session in which trainees are given feedback about their role-
playing. This helps the trainee to develop job performance skills.

 Brainstorming
Brainstorming is a conference technique by which a group attempts to find a solution for a
specific problem by amassing all ideas spontaneously contributed by its members. For
brainstorming, a group of ten to fifteen persons is selected from the same levels. The process of
brainstorming is as follows. The same problem is given to each member and is clearly explained.
Each member is asked to give as many ideas as possible freely and frankly to solve the problem.
There are no limitations like financial, procedural, legal, organizational, etc., given to solve the

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problem. Because these limitations restrict the free flow of ideas. Any criticism, judgment, or
comment is strictly avoided to create a genial atmosphere for the free flow of ideas. Finally, all
these ideas are evaluated by the trainer. This training method is provided to develop creativity
and imaginative power among managers.

 In-basket exercise
Different types of assignments were given at the same time to the participant and their reactions
were observed. Lastly, feedback was given by the instructor about their reactions. This exercise
is designed for managers to learn techniques of giving priorities to various problems faced by
them in their typically day

 Sensitivity training ( T-group training)

This training is designed to develop better human relations for managers. The group consisting
of ten to twenty persons only starts discussions without any subject given. In this session, they
self-examine, with emotional level and behavior, criticize their colleagues and behavior, criticize
their colleagues and behavior of each individual about where he has gone wrong. This way,
trainees can develop a tolerance for others’ views, become less prejudiced, develop an
understanding of group processes and listening skills.

 Programmed instruction: It is a method that involves breaking information

into meaningful information and rearranging them in a proper sequence to form
a learning package. It consists of three functions: -
 Presenting questions, facts, or problems to the learner
 Allowing the trainee to respond
 Providing the necessary feedback on the accuracy of his answer.
 Self-improvement programs: Refer to acquiring knowledge through
additional reading and self-improvement programs.

6. PERFORMANCE APPRAISAL
Job performance: - Refers to the degree of accomplishment of the task that
makes an individual’s job. It is measured in terms of results. It is periodic and
impartial.

“A performance appraisal is a process of evaluating employee’s performance of a job in terms of

its requirements”.

Hegel observes: “It is the process of evaluating performance and qualifications of the employees
in terms of the requirements of the hob for which he is employed, for purposes of administration
including placement. Selection for promotions, providing financial rewards and other actions
which require differential treatment among the members of a group as distinguished from actions
affecting all members equally.”

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Others regard it as a “process of estimating or judging the value, excellence, qualities or status of
some object, person or thing.”

Importance of performance appraisal

Performance appraisal is an important tool of personnel management in the following ways.
 It unifies the appraisal procedure:
Due to this, all employees are rated in the same manner. Utilizing the same approach so that
the rating obtained of separate personnel are comparable.
 Provides useful information
It provides information that is useful in making and enforcing important decisions about
selection, training, promotions, pay increases, transfers, lay-offs, discharges, salary
adjustments, etc.
 Assists managers to observe their subordinates more closely and do a better
job coaching.
 Motivates employees by providing feedback on job performance.
 Achieves better operational results - improved work performance.
 Identifies development needs.
 Provides backup of data for making decisions about employee compensation.
 Reduces favoritism in making managerial decisions about employees.
Aspects of Performance Appraisal
Transfer, Promotion, Demotion, and Separation
 Transfer: is a movement of an employee from one job, section, department
staff, place, or position to other places where salary, status, and responsibility
are the same. It is movement from one job to the other.
 Promotion: Moving an employee to a job involving higher pay, status, and thus
higher performance requirements.
 Demotion: Shift of an employee to a lower position in the hierarchy, salary, and
responsibility due to inefficiency and incompetence to fulfill assigned tasks. It
causes frustration and leads to defensive or even aggressive behavior.
 Separation: Refers to those factors that bring the termination or ceasing of the
relationship between the organization and the employee. It may result due to:
- resignation
- Lay - off It can be either voluntary or involuntary.
- discharges
- retirement

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