BUSINESS STUDIES – CLASS 12

CHAPTER 6 – STAFFING

1. INTRODUCTION

1. Staffing is the third function of management, coming after planning and organising.
2. It deals with the people aspect of management since any organisation runs through human effort.
3. It ensures that the right number of people, having the right skills, are placed in the right jobs, at the right time.
4. Modern organisations face increased competition, technological changes, globalisation, and complex work patterns. This increases the need for systematic staffing.
5. Effective staffing contributes to organisational efficiency, higher productivity, and better morale.

2. MEANING OF STAFFING

1. Staffing refers to the process of acquiring, developing, employing, remunerating, and retaining people in the organisation.
2. It includes:
   • Estimating manpower requirements
   • Recruitment
   • Selection
   • Training and development
   • Placement and orientation
   • Performance appraisal
   • Compensation management
   • Promotion and career planning
3. Staffing is also called personnel management or human resource management in modern terminology.
4. It ensures optimum utilisation of human resources and builds a strong workforce.

3. IMPORTANCE OF STAFFING

(1) Efficient Performance of Other Functions

• All managerial functions depend on competent employees.
• Without the right people, planning and organising cannot be executed effectively.

(2) Optimum Utilisation of Human Resources

• Prevents both overstaffing and understaffing.
• Ensures proper allocation of tasks according to employee abilities.

(3) Helps in Recruitment and Selection

• Creates clear guidelines for attracting qualified personnel.
• Ensures transparency through structured procedures.

(4) Employee Development

• Training and development programs enhance skills and efficiency.
• Helps employees grow professionally and personally.

(5) Builds Higher Morale

• Proper staffing results in fair compensation, growth opportunities, recognition.
• Motivated workforce performs better.

(6) Increased Productivity

• The right person in the right job leads to high output and quality.
• Reduces wastage, errors, and absenteeism.

(7) Key to Long-Term Organisational Survival

• Organisations face competition and rapid changes.
• A strong HR base helps in adaptation and innovation.

(8) Planning for Manpower

• Helps in forecasting future needs of personnel.
• Ensures a continuous supply of capable employees.

4. EVOLUTION OF HUMAN RESOURCE MANAGEMENT (HRM)

(1) Early Stage – Personnel Administration

• Focused mainly on employee wages, attendance, and welfare.
• Treated employees as tools of production.

(2) Scientific Management Era

• F.W. Taylor emphasised selecting scientifically trained workers.
• Introduced standardized methods, training, and incentive wages.

(3) Human Relations Movement

• Elton Mayo stressed the importance of human and social factors.
• Employee satisfaction linked to productivity.

(4) Emergence of HRM

• Staffing evolved into Human Resource Management due to:
  • Industrial growth
  • Technological changes
  • Globalisation
  • Need for employee empowerment
• HRM views humans as valuable assets, not just labour.
• HRM includes talent management, performance systems, succession planning.

(5) Strategic HRM

• HRM integrated into organisational strategy.
• Workforce planning aligns with business goals.

5. STAFFING PROCESS

The staffing process is a systematic series of steps to ensure effective human resource management.

Step 1: Estimating Manpower Requirements

1. Workload Analysis
   • Calculating the total number of persons required for different jobs.
   • Based on production targets, job analysis, and schedules.
2. Workforce Analysis
   • Assessing the existing number and quality of employees.
   • Identifying vacancies due to retirement, transfer, promotion, expansion.
3. Job Analysis
   • A detailed study of each job in the organisation.
   • Consists of:
     • Job Description (duties, responsibilities, conditions)
     • Job Specification (qualifications, skills, experience required)
4. Importance
   • Helps in preparing job advertisements
   • Makes recruitment objective
   • Helps in selection and training

Step 2: Recruitment

1. Recruitment refers to the process of searching and attracting potential candidates.
2. It encourages a large number of applicants so that the best can be selected.
3. Two main sources:

(A) Internal Sources

• Promotions
• Transfers

Advantages

• Motivates employees
• Economical and faster
• Reliable as employees are known

Disadvantages

• Limited choice
• Creates stagnation
• May cause jealousy among employees

(B) External Sources

• Campus recruitment
• Employment exchanges
• Job portals
• Advertising
• Recommendations

Advantages

• Fresh talent
• Wider choice
• Brings new ideas

Disadvantages

• Expensive
• Time-consuming
• Risk of wrong selection

Step 3: Selection

1. Selection refers to the process of choosing the most suitable candidate.
2. It eliminates unsuitable candidates through a series of tests and interviews.

Steps in Selection

1. Scrutiny of Application Forms – preliminary screening
2. Selection Tests
   • Intelligence test
   • Aptitude test
   • Personality test
   • Trade/skill test
3. Employment Interview
4. Reference and Background Check
5. Selection Decision
6. Medical Examination
7. Job Offer
8. Letter of Appointment

Importance of Selection

• Improves organisational performance
• Reduces training cost
• Minimises employee turnover

Step 4: Placement and Orientation

1. Placement
   • Putting the selected candidate at the right job.
2. Orientation (Induction)
   • Introducing the new employee to the organisation.
   • Includes information about rules, supervisors, work culture.

Step 5: Training and Development

Purpose: to increase skills, efficiency, and knowledge.

Training

• For improving skills of employees for their current job.

Development

• Focuses on growth for future managerial positions.

Step 6: Performance Appraisal

1. Monitoring and evaluating employee performance.
2. Helps in promotions, rewards, training needs.

Step 7: Compensation & Reward Management

1. Includes wages, salaries, incentives, bonuses.
2. Fair compensation attracts and retains talent.

Step 8: Promotion and Career Planning

• Ensures upward movement of employees.
• Enhances motivation and job satisfaction.

Step 9: Separation

• Retirement
• Resignation
• Layoff
• Dismissal

6. RECRUITMENT

Recruitment is a positive process aimed at creating a large pool of candidates.

Features

• Attracts candidates
• Begins even before selection
• Boosts employer brand
• Uses internal and external channels

Importance

• Helps discover potential employees
• Reduces selection pressure
• Encourages competition

7. SELECTION

Selection is a negative and eliminative process.

Purpose

• Hire the best candidate
• Fit between job and individual
• Reduce future employee issues

Qualities Checked

• Knowledge
• Skills
• Communication
• Behavior
• Attitude

8. TRAINING AND DEVELOPMENT

Training is essential for employee growth and organisational success.

Training Methods

A. On-the-Job Training

1. Apprenticeship Training
2. Coaching
3. Job Rotation
4. Internship Training

Advantages

• Practical exposure
• Economical
• Hands-on learning

Disadvantages

• Disturbs routine work
• Risk of mistakes

B. Off-the-Job Training

1. Classroom Lectures
2. Case Study Method
3. Vestibule Training
4. Conference and Seminars
5. E-Learning / Online Modules

Advantages

• Systematic learning
• No disturbance of work
• Expert trainers

Disadvantages

• Costly
• Less practical

Development Programmes

1. Executive development
2. Management seminars
3. Personality development programmes
4. Leadership training

9. CONCLUSION

1. Staffing is a vital managerial function that ensures the availability of a competent, motivated, and productive workforce.
2. It covers a broad range of activities—manpower estimation, recruitment, selection, training, development, appraisal, and compensation.
3. Organisations today operate in a competitive and dynamic environment; hence, human resources become the key differentiating factor.
4. Effective staffing enhances organisational performance, employee satisfaction, innovation, and long-term sustainability.
5. Ultimately, staffing ensures that “right people are placed at the right job at the right time with the right skills.”