Staffing
In this video series, I am covering the Business Studies subject from the CBSE Class XII syllabus. We will be following the standard NCERT textbook for the topics that we will discuss. This is the sixth video of the series, and we will cover the sixth chapter—Staffing.
Introduction
In the first part of this series, we discussed the various functions of management:
- Planning: Deciding what is to be done, how it is to be done, and when it is to be done. Setting goals and strategies for the organization.
- Organising: Allocating resources (like time, money, people), deciding team structures, and assigning duties to different roles or positions.
- Staffing: Finding the right people internally or externally for the roles or positions you have created and training them to do the jobs.
This chapter focuses on the Staffing function. Staffing simply means finding and bringing in the right people for the various roles in the organization and training them to do the jobs.
What is Staffing?
Staffing is the process of finding and bringing in the right people for the various roles in the organization. It involves obtaining, utilizing, and maintaining a satisfactory and satisfied workforce.
Staffing is not just about recruiting the required personnel but also about keeping them within the organization. Losing experienced and trained employees may cause significant losses to the organization.
Types of Personnel
Depending on the type and size of the organization, personnel can include:
- Volunteers
- Interns
- Apprentices or Trainees
- Casual Workers
- Consultants
- Part-Time Employees
- Contract Employees
- Full-Time Employees
Recruitment is done for all these types of personnel.
Staffing Process
Staffing is a process that includes:
- Estimating Manpower Requirements
- Recruitment
- Selection
- Placement and Orientation
- Training and Development
- Performance Appraisal
- Promotion and Career Planning
- Compensation (Remuneration or Salary)
Depending on the size of the organization, staffing may be a continuous process due to ongoing increases or expansions in current roles, creation of new roles, and refilling of vacancies due to resignations.
Importance of Staffing
Staffing is crucial for several reasons:
- Implementation of Plans: Even the best plans or strategies require people to implement them. Having the right people in the right roles at the right time is key to the organization’s success.
- Filling Roles: Staffing systematically fills the roles and positions shown in the organization structure, converting the plan into an actual workforce.
- Hiring Qualified Personnel: Helps in finding and hiring qualified personnel for different jobs.
- Improved Performance: Placing the right person in the right role improves performance.
- Long-Term Survival and Growth: Ensures the company’s long-term survival through succession planning for managers.
- Optimal Use of Human Resources: Prevents overstaffing and underutilization, thereby reducing labor costs and avoiding work disruptions.
- Job Satisfaction and Employee Morale: Enhances job satisfaction and employee morale through objective assessments and fair compensation.
Staffing as Part of Human Resource Management
Staffing is a part of Human Resource Management (HRM). To utilize and manage all other resources (financial, physical, technological, etc.), you need people—human resources. Managing human resources is HRM.
Activities Covered Under HRM
- Analyzing jobs to create job descriptions
- Recruiting qualified candidates
- Developing compensation and incentive plans
- Training and development for better performance and career growth
- Managing labor and union relations
- Handling employee grievances and complaints
- Providing social security and employee welfare
- Ensuring compliance with statutory and regulatory requirements
- Defending the company in lawsuits and avoiding legal issues
The first four points are part of the staffing function, showing that staffing itself is part of HRM.
Evolution of Human Resource Management
Human Resource Management, including staffing, has evolved over time:
- Early Civilization: Identifying the best people for different tasks and responsibilities.
- Organized Activities: Need for specialized skills in farming and building large structures.
- Industrial Revolution: Emergence of staffing as a scientific process and part of HRM due to large-scale factories and labor unions.
- Scientific Management Theories: Focused on efficiency and systematic worker training.
- Human Relations Movement: Emphasized employee morale and social factors in productivity.
- Labor Laws: Necessitated HRM to include legal compliance.
- Organizational Psychology: Applied scientific methods to manage behavior and performance.
- Globalization and Diversity: Required HR to manage cross-cultural teams and global talent.
- Technological Advances: Integration of automation and digital tools in HR.
- Strategic HRM: Aligned HR strategies with business goals and talent management.
- Employee Rights: Shaped HR policies on diversity, equity, and inclusion.
- Work-Life Balance: Led HR managers to focus on well-being and mental health.
- Remote Work: Forced HR to manage remote and flexible work arrangements.
To summarize, the evolution of staffing mirrors the evolution of HRM.
Staffing as a Process
Staffing is a continuous process with well-defined steps:
- Estimating Manpower Requirements
- Recruitment
- Selection
- Placement and Orientation
- Training and Development
- Performance Appraisal
- Promotion and Career Planning
- Compensation
External factors such as market conditions, economic environment, and competition influence the steps in the staffing process.
1. Estimating Manpower Requirements
This involves determining not just the number of employees needed but also the specific qualifications, skills, and experience required for various job positions. It includes:
- Workload Analysis: Assessing the work to be done to decide the kind of people and how many are needed.
- Workforce Analysis: Assessing current employees to determine what resources are already available.
Avoiding overstaffing and understaffing is crucial to prevent wastage of resources and productivity issues.
2. Recruitment
Recruitment is the process of searching for prospective employees and encouraging them to apply for jobs in the organization. It involves:
- Using job descriptions and candidate profiles to create job advertisements.
- Choosing the right platforms to reach potential candidates (e.g., internal communications, social media, job portals).
- Creating a pool of prospective job applicants from internal and external sources.
3. Selection
Selection is the process of choosing the best candidates from the pool of prospective job applicants. It involves:
- Conducting various tests (Intelligence Tests, Aptitude Tests, Personality Tests, Trade Tests, Interest Tests).
- Interviews and assessments.
- Offering employment contracts to successful candidates.
4. Placement and Orientation
Placement involves assigning the employee to the specific job or position they were selected for. Orientation is the process of introducing the new employee to the company and the team, including their superiors, subordinates, and colleagues. It includes:
- Familiarizing the employee with the workplace, company rules, and policies.
- Socialization to impact the employee’s decision to stay and their job performance.
5. Training and Development
Training and Development aim to improve employee performance by enhancing skills, knowledge, and attitudes through learning. It involves:
- Providing opportunities for learning through in-house training centers or partnerships with educational institutes.
- Offering career advancement opportunities to attract and retain talented employees.
6. Performance Appraisal
Performance appraisal involves evaluating an employee’s current or past performance against predetermined standards. It includes:
- Defining job expectations.
- Assessing performance against expectations.
- Providing feedback to the employee.
7. Promotion and Career Planning
Organizations must provide promotion or growth opportunities for their employees. Managers should design activities that support employees’ long-term interests and encourage them to reach their full potential.
8. Compensation
Compensation refers to the remuneration, salary, bonuses, and any other benefits that an employee receives in exchange for the work done. It includes:
- Establishing wage and salary plans based on the worth of the job.
- Direct financial payments (wages, salaries, incentives, commissions, bonuses).
- Indirect payments (insurance, vacations).
- Combining time-based pay with performance-based incentives.
Aspects of Staffing
The three key aspects of staffing discussed in detail are:
- Recruitment
- Selection
- Training and Development
1. Recruitment
Recruitment involves searching for potential candidates and encouraging them to apply for jobs in the organization. It includes:
- Sources of Recruitment:
- Internal Sources: Transfers, promotions from within the organization.
- External Sources: Direct recruitment, internet portals, advertisements, employment exchanges, agencies and consultants, campus recruitment, employee referrals, labor contractors.
- Activities within the Recruitment Process:
- Identification of different sources of personnel.
- Assessment of the validity of the sources.
- Choosing the most suitable sources.
- Inviting applications from prospective candidates to build a pool.
Merits and Limitations of Internal and External Sources
| Aspect | Internal Sources | External Sources |
|---|---|---|
| Merits |
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| Limitations |
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2. Selection
Selection is the process of choosing the best candidate from the pool of applicants. It involves multiple tests and interviews, with candidates being eliminated at each stage.
Steps in the Selection Process
- Preliminary Screening
- Selection Tests (Intelligence, Aptitude, Personality, Trade, Interest)
- Employment Interview
- Reference and Background Checks
- Selection Decision
- Medical Examination
- Job Offer
- Contract of Employment
3. Training and Development
Training and Development aim to improve employee performance by enhancing skills, knowledge, and attitudes through learning.
Difference Between Education, Training, and Development
- Education: Acquiring broad knowledge, theories, and concepts to prepare for future roles.
- Training: Enhancing specific skills or competencies needed for current job tasks.
- Development: Long-term growth focusing on overall personal and professional growth.
Importance of Training and Development
Benefits to the Organization:
- Efficient Learning: Reduces wastage of time and resources.
- Higher Productivity: Improves work quality leading to higher profits.
- Leadership Preparation: Creates future managers.
- Boosts Morale: Lowers absenteeism and employee turnover.
- Adaptability: Helps in responding to changes.
Benefits to the Employee:
- Better Performance: Increases efficiency in the current job.
- Skill Growth: Enhances career prospects.
- Higher Pay: Better performance leads to more earnings.
- Safety: Reduces accident risks.
- Job Satisfaction: Increases employee morale.
Comparison Between Training and Development
| Aspect | Training | Development |
|---|---|---|
| Focus | Enhancing specific skills for current tasks | Overall growth and future potential |
| Objective | Improve immediate job performance | Prepare for future roles and responsibilities |
| Duration | Short-term | Long-term |
| Scope | Narrow, job-specific skills | Broad, including leadership and personal growth |
| Target Audience | All employees, especially new hires | Employees with leadership potential |
| Orientation | Job-specific and task-oriented | Holistic and career-oriented |
Training Methods
Training can be provided through On-the-Job Methods or Off-the-Job Methods.
On-the-Job Training
- Takes place at the workplace where the employee is actively engaged in their job.
- Employees learn by doing, typically under supervision or through direct participation.
- Costs are generally lower as it does not require additional facilities or resources.
- Immediate application of skills in a real work environment.
Examples: Apprenticeship Programs, Coaching, Internship Training, Job Rotation.
Off-the-Job Training
- Conducted away from the workplace, often in a separate training facility or educational institution.
- Trainees learn theoretical knowledge and broader skills.
- Costs are often higher due to external facilities, materials, and trainers.
- Provides a distraction-free environment for learning.
Examples: Classroom Lectures and Conferences, Workshops, Audio-Visual Films, Case Studies, Computer Modelling, Vestibule Training, Programmed Instructions.
On-the-Job Training Methods Explained
- Apprenticeship Programs: Trainees work under a skilled master to acquire higher-level skills.
- Coaching: A senior manager guides the trainee, setting goals and reviewing progress.
- Internship Training: Combines academic studies with practical work experience.
- Job Rotation: Trainees are shifted between departments to gain a broad understanding of the organization.
Off-the-Job Training Methods Explained
- Classroom Lectures/Conferences: Formal presentations using audio-visual aids.
- Audio-Visuals/Films: Demonstrate skills and information, often with discussions.
- Case Studies: Trainees analyze real-life business problems and develop solutions.
- Computer Modelling: Simulates work environments for learning without real-life risks.
- Vestibule Training: Training on actual equipment away from the work floor.
- Programmed Instruction: Structured learning in sequential units with interactive elements.
Conclusion
With that, we have come to the end of this chapter. If you have any questions or feedback, post a comment below. I will see you soon in the next video, where we will cover the next chapter.
