CHAPTER 6- STAFFING

Meaning –

Staffing is the process of recruiting, selecting, training, and developing

employees to ensure that an organization has the right people in the right
jobs at the right time. It is an essential function of management.

Features of Staffing

1.Separate Managerial Function – Staffing is a core function of management,

separate from other functions like planning and controlling.

Example: A company hires HR managers specifically to handle recruitment

and employee management.

2.Related to Human Beings – Staffing focuses on managing people, not

machines or raw materials.

Example: Hiring skilled workers, training them, and ensuring their well-being.

3.Essential at All Levels of Management – Every level of management, from

top executives to supervisors, needs staffing.

Example: A factory requires both supervisors and workers to run operations

smoothly.

4- Continuous process – Staffing is an ongoing activity because employees

may leave, retire, or get promoted, requiring new hiring or internal
adjustments. Organizations must continuously recruit, train, and develop
employees to maintain smooth operations and growth.

5.Effect of Internal and External Environment – Staffing is influenced by

company policies (internal) and market trends (external).

Example: A company may slow down hiring during an economic recession.

Importance of Staffing

1. Helpful in Discovering and Obtaining Competent Personnel – Ensures

hiring of skilled employees.

Example: A company tests candidates’ skills before hiring.

 2. Helpful in Better Performance – Skilled employees improve efficiency.

Example: A trained chef cooks better food than an untrained one.

3. Helpful in Optimum Utilization of Human Resources – Ensures that

every employee is working at their full potential.

Example: Assigning a data analyst to analyze trends instead of doing clerical

work.

4. Helpful in Continuous Survival and Growth of the Enterprise – Good

staffing helps a business sustain and expand.

Example: Companies that invest in employee training tend to grow faster.

5. Helpful in Improving Job Satisfaction and Morale of Employees – Proper

staffing keeps employees motivated.

Example: Promoting employees based on performance boosts motivation.

Staffing Process

1. Estimating Manpower Requirements – Identifying how many employees

are needed and for what roles.

Example: A new branch opening requires hiring staff.

2. Recruitment – Finding and attracting potential candidates.

Example: Advertising job openings online.

3. Selection – Choosing the best candidates through interviews and tests.

Example: Conducting technical tests before hiring software developers.

4. Placement and Orientation – Assigning the new hire to a job and

familiarizing them with the workplace.

Example: A new employee gets introduced to company policies.

5. Training and Development – Improving employees’ skills through

workshops and training programs.

Example: Customer service staff undergo communication training.

 6. Performance Appraisal – Evaluating employees’ work and providing
feedback.

Example: Annual reviews to decide promotions and bonuses.

7. Promotion and Career Planning – Identifying growth opportunities for

employees.

Example: Promoting a junior accountant to a senior role.

8. Compensation – Deciding salaries, bonuses, and benefits.

Example: Increasing salaries based on experience.

HRM STAGES –

1. Labour Welfare Stage

This was the earliest stage of HRM, where the focus was on the basic welfare
of workers. Employers were concerned with providing a safe and healthy
work environment. The goal was to prevent worker dissatisfaction and
improve productivity.

Key Aspects:

Ensuring better working conditions

Providing clean drinking water and sanitation

Reducing excessive working hours

Example:

During the Industrial Revolution, factory owners started implementing better

safety measures, such as ventilation and rest breaks, to prevent worker
fatigue and accidents.

2. Personnel Management Stage

At this stage, HRM became more organized. Companies started maintaining

employee records, managing payroll, and handling employment policies. It
also included hiring and training employees systematically.
Key Aspects:

Formal recruitment and selection processes

Maintaining employee records (attendance, salary, etc.)

Basic training and skill development

Implementation of labor laws

Example:

Companies like Tata Steel in India established personnel departments to

manage employee records, wages, and work conditions in the early 1900s.

3. HRM Stage (Modern Human Resource Management)

HRM evolved into a strategic function where employees were seen as

valuable assets rather than just workers. Organizations now focus on
employee growth, motivation, and engagement to improve overall business
performance.

Key Aspects:

Employee motivation and career planning.

Performance-based promotions and rewards.

Training and skill development programs.

Ensuring employee satisfaction and work-life balance.

Example:

Companies like Google invest heavily in employee development, offering

leadership training, mental health programs, and career growth
opportunities.

Specialized Duties and Activities of HRM

1. Recruitment and Selection

HR is responsible for finding and hiring the right people for different job roles.
They create job advertisements, review applications, conduct interviews, and
select the best candidates.

Example: A software company posts a job opening for a web developer,

shortlists candidates, conducts interviews, and hires the most skilled
applicant.

2. Providing Expert Services

HR professionals offer guidance and solutions for various employee-related

issues, such as workplace conflicts, performance improvement, and career
growth.

Example: If two employees have a dispute, HR steps in to resolve the issue

fairly and professionally.

3. Developing Compensation and Incentive Plans

HR designs salary structures, bonuses, and reward programs to keep

employees motivated and satisfied with their jobs.

Example: A company offers annual bonuses to employees who perform

exceptionally well, encouraging higher productivity.

4. Handling Grievances and Complaints

HR listens to employees’ concerns and resolves problems related to working

conditions, unfair treatment, or any workplace issues.
Example: If an employee feels they were unfairly denied a promotion, HR
investigates the matter and ensures a fair resolution.

5. Providing Social Security and Employee Welfare

HR ensures employees receive benefits like health insurance, pensions,

maternity leave, and a safe work environment.

Example: A company provides free health check-ups for its employees to

promote their well-being.

6. Defending the Company in Lawsuits

If a company faces legal issues related to employees, HR ensures compliance

with labor laws and provides necessary documents and evidence to protect
the organization.

Example: If an employee sues for wrongful termination, HR presents

performance records and proof of fair dismissal to defend the company.

7. Keeping Employee Records

HR maintains detailed records of employees, including attendance, salary,

job history, and personal details, to ensure smooth management and
compliance with labor laws.
Example: A company keeps digital files of employee work hours to track
attendance and calculate salaries accurately.

8. Developing the Organizational Structure

HR helps design the company’s work structure by defining job roles,

reporting hierarchy, and departmental responsibilities.

Example: In a hospital, HR ensures that doctors, nurses, and administrative

staff have clearly defined roles to provide efficient patient care.

Why Are These Duties Important?

Ensure employees are happy, motivated, and productive.

Maintain a fair and safe workplace.

Help the company comply with labor laws and avoid legal issues.

Improve overall business growth and stability.

Recruitment

Recruitment is the process of attracting, identifying, and encouraging

potential candidates to apply for a job. It ensures that the organization has
the right people for the right roles.
Process of Recruitment

1. Requisition of Employees – Identifying the need for hiring new

employees.

Example: A company losing employees due to resignations or retirements

needs replacements.

Importance: Helps maintain workforce strength and productivity.

2. Identification of the Source of Recruitment – Deciding whether to hire

from internal or external sources.

Example: Hiring from universities, job portals, or internal promotions.

Importance: Ensures access to the right talent pool.

3. Invitation to Interested People – Advertising job vacancies to attract

applicants.

Example: Posting job listings on company websites, social media, and

newspapers.

Importance: Reaches a wide range of candidates.

4. Preparing the List of Deserving Applicants – Shortlisting the best

candidates based on qualifications and skills.

Example: Filtering resumes and selecting candidates for interviews.

Importance: Ensures the hiring of skilled and competent employees.

Sources of Recruitment

Recruitment sources are divided into two main types:

1. Internal Sources (Hiring from within the company)

Faster and cost-effective.

Increases employee motivation and loyalty.

Reduces training costs since existing employees are familiar with the
company.

Examples:

Transfer – Moving an employee to another department without changing

their rank.

Example: A sales executive is transferred to a marketing role.

Promotion – Elevating an employee to a higher position with increased

responsibilities.

Example: A team leader is promoted to a manager.

Lay-off – Temporarily removing employees due to business conditions.

Example: A factory lays off workers during low demand.

Merits of Internal Sources of Recruitment

1. Increase in Motivation – Promoting employees boosts their morale and

encourages them to work harder.

Example: A junior accountant promoted to a senior position feels valued and

motivated.

2. Easy Selection – Internal employees are already familiar with the

company’s work culture, making selection easier.

Example: A customer service agent can be promoted to a supervisor without

extensive interviews.

3. Industrial Peace – Employees feel secure as they see growth

opportunities within the company.

Example: A company promoting long-serving employees reduces labor

disputes.
 4. No Need for Induction – Internal hires already know company policies
and processes, saving training costs.

Example: A software engineer moving to a project manager role does not

need basic training.

5. Economical Source – It saves recruitment costs such as advertising and

agency fees.

Example: Instead of paying for job postings, a company promotes an existing

employee.

6. Adjustment of Surplus Employees – Employees can be transferred to

departments where their skills are needed.

Example: A marketing executive is moved to sales due to high demand in

that department.

Demerits of Internal Sources of Recruitment

1. Employees Become Lethargic – Limited external competition can make

employees complacent.

Example: Employees might not improve their skills if they know promotions
happen automatically.

2. Not Suitable for a New Organization – Internal hiring is impossible if the

company is newly established.

Example: A startup must hire from external sources since it has no existing
employees.

3. Stops the Entry of New Employees – Fresh talent and new perspectives
may be missed.

Example: An IT company relying only on internal promotions may lack

innovation.
 4. Cause of Competition Among Employees – Internal promotions can
create unhealthy rivalries.

Example: Two employees competing for the same role might lead to
workplace conflicts.

5. Frequent Transfer Hits Productivity Negatively – Regular transfers can

disrupt workflow.

Example: A sales team struggling because key employees keep getting

transferred.

External Sources of Recruitment

External recruitment refers to hiring candidates from outside the

organization.

1. Direct Recruitment – Jobs are advertised through notices or company

boards.

Example: A retail store places a “Hiring Now” sign for walk-in applicants.

2. Casual Callers – Companies keep databases of potential employees for

future vacancies.

Example: A hotel maintains a list of chefs who can be hired when needed.

3. Employment Exchanges – Government agencies help match job

seekers with employers.

Example: A manufacturing company hiring workers through a labor

exchange.

4. Placement Agencies – Private firms specialize in finding candidates for

businesses.

Example: An IT firm using a hiring agency to recruit software developers.

 5. Management Consultants / Head Hunters – Specialized agencies recruit
executives for high-level positions.

Example: A headhunting firm finding a CEO for a multinational company.

6. Campus Recruitment – Companies hire fresh graduates from colleges

and universities.

Example: An engineering firm selecting students from IIT during a placement

drive.

7. Recommendations of Employees – Existing employees refer candidates

for job openings.

Example: An employee recommending a friend for a data analyst position.

8. Labour Contractors – Middlemen supply workers, especially in

industries like construction.

Example: A builder hiring workers through a labor contractor.

9. Telecasting – Jobs are advertised on TV channels.

Example: A government organization announcing vacancies on news

channels.

10. Web Publishing – Online job portals help in recruitment.

Example: Companies posting vacancies on LinkedIn and Naukri.com.

Merits of External Sources of Recruitment

1. Qualified Personnel – External hiring ensures the company gets highly

skilled employees.
2. Wider Choice – More candidates apply, increasing the chances of
finding the right fit.
 3. Fresh Talent – New employees bring innovative ideas and skills.
4. Competitive Spirit – Internal employees work harder to compete with
new hires.
5. Less Chance of Favouritism – External hiring reduces bias in
promotions.

Demerits of External Sources of Recruitment

1. Lengthy Process – Hiring externally takes time due to screening and

interviews.
2. Dissatisfaction Among Existing Staff – Employees may feel
demotivated if outsiders are preferred.
3. Costly Process – Advertising, recruitment agencies, and training add
expenses.
4. Chances of Wrong Selection – External candidates might not fit well
into the company’s culture.
5. Increase in Labour Turnover – New hires may leave quickly if they don’t
adapt.

Selection Process

Selection involves choosing the best candidate from a pool of applicants.

1. Preliminary Screening – Initial filtering based on resume and

qualifications.
2. Selection Tests – Candidates take aptitude or technical tests.
3. Employment Interview – Shortlisted candidates are interviewed.
4. Reference and Background Check – Employers verify past employment
details.
5. Medical Examination – Health checks ensure fitness for the job.
6. Final Selection – The best candidate is chosen.
7. Job Offer – A formal offer letter is issued.

Selection Tests

1. Intelligence Test – Measures problem-solving and learning ability.

Example: Logical reasoning tests for software engineers.

2. Aptitude Test – Assesses potential for a specific role.

Example: A numerical test for a finance job.

3. Personality Test – Evaluates a candidate’s behavior and temperament.

Example: A sales candidate takes a test to assess communication skills.

4. Trade Test – Measures job-specific skills.

Example: A welder taking a practical test before hiring.

5. Interest Test – Identifies areas where candidates are most passionate.

Example: A journalist being assessed for their interest in news writing.

Training and Development

Training helps employees improve their current job performance, while

development prepares them for future responsibilities.

Features of Training

1. Expense on Training is an Investment – Well-trained employees

increase productivity.
2. Not a One-Time Process – Continuous learning is essential.
3. Reduces Wastage – Trained employees make fewer mistakes.
4. Beneficial to Both the Organization and Individual – Employees grow,
and the company benefits.
5. Training and Development are Different – Training improves current
skills, while development prepares for future roles.
6. Training and Education are Different – Education is broader, while
training is job-specific.

Types of Training in Detail

 Training is a systematic process aimed at improving employees’ skills,
knowledge, and efficiency. There are different types of training based
on the needs of employees and organizations.

1. Apprenticeship Training

Purpose: A long-term training method where employees learn technical

skills under experts while working.

Example: A mechanical engineering student joins a manufacturing firm

for a 6-month apprenticeship to gain hands-on experience.

2. Internship Training

Purpose: Temporary job training where students or freshers gain

practical experience.

Example: A law student works as an intern in a law firm to understand

legal proceedings.

7. Vestibule Training

Purpose: Training is conducted in a simulated environment before

employees start real work.

Example: A call center sets up a practice workstation for new

employees before assigning them to live customer calls.
Importance of Training

For Organizations:

Better use of materials and equipment.

Less need for supervision.

Reduced employee turnover.

Improved adaptability and quality.

For Employees:

Increased efficiency.

Higher market value.

Better career advancement.

Greater job satisfaction.