Staffing

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LILAVATIBAI PODAR HIGH SCHOOL, ISC

STD: - 12TH

Academic year 2021- 2022

SUBJECT: - COMMERCE

CHAPTER: - no. 10 STAFFING

(c) Staffing: Meaning, steps and importance; Recruitment – Meaning and sources; Selection –Meaning and procedure; Training and development – Meaning, difference between selection and recruitment.

1. Give the meaning and definition of Staffing?

Answer: -

Staffing may be defined as the process of hiring and developing the required personnel to fill in various positions in the organisation.

It involves estimating the number and type of personnel required, recruiting and developing them, and maintaining and improving their competence and performance. utilisation, conservation and development of human resources.

It is the art of acquiring, developing and maintaining a satisfactory and satisfied work force. According to Koontz and O'Donnell, "The managerial function of staffing involves manning the organisational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure."

Thus, staffing is concerned with ensuring that the organisation has the right number of people and the right kind of people at the right places, at the right time and that they are doing the right things.

2. State the importance of staffing?

Answer: -

(a) Huge Investment:

The creation and maintenance of competent and dedicated work force require considerable investment in terms of time, money and efforts. The return on investment in the procurement and development of staff can be high or low (even negative) depending upon the manner in which the staffing function is carried out. Efficient and effective staffing helps to maximise return on investment in human resources.

(b) Long Term Implications:

Investment in human resources has long term effects. Therefore, decisions in the area of staffing are crucial, particularly in case of managerial personnel. Moreover, human resources tend to become obsolete with advancements in technology and other changes.

(c) Multiplier Effect:

People are the most valuable asset of any organisation. Other assets such as land and building, machinery and equipment, money and materials become productive only when people use them properly. Therefore, the quality of human resources has a multiplier effect on all parts of an organisation. Without proper staffing, the success and growth of an organisation are not possible.

(d) Holistic Approach:

The contribution of a person in an organisation depends not merely on his own competency and motivation but also on the competence and motivation of his superior and subordinates and on the facilities provided to him. A holistic approach is necessary for nurturing people and building a sound human organisation in which the job performance and satisfaction of every person can be high. Staffing helps to maximise not only present contributions of people but also their potential contributions in future.

(e) Key to Other Functions:

Without people, an organisation is an empty shell of job positions. Staffing injects life into the organisation by providing the right person for every job. The effectiveness of directing and controlling functions also depends upon staffing. Hiring and development of competent and dedicated staff enables an organisation to function successfully in the changing environment.

(f) Liberalisation and Globalisation:

Skillful management of human resources has become essential for success in business in the modern era of global competition. Moreover, serious, moral and legal issues are involved in the acquisition, utilisation and discharge of employees. Due care is required to be on the right side of law and ethics while performing various activities of staffing function. In recent decades, the importance of staffing function has increased due to the increasing size of organisations, technological progress, trade unions, labour laws, etc.

3. What are the steps involved in Staffing Process?

Answer: - These activities together make the staffing process. Therefore, these are called elements or STEPS OF STAFFING PROCESS. These are given below:

1. Human Resource Planning (Manpower Planning):

It involves forecasting and determining the number and kind of manpower required by the organisation in future. The manpower needs of an organisation are estimated keeping in view its present activities and future plans such as production schedules, demand forecasts, market trends, etc.

Its purpose is to obtain the right number of qualified people at the right time. It is an integral part of overall corporate planning.

Manpower requirements are estimated with the help of work load analysis and work force analysis. Work load analysis helps in assessing the number and types of human resources required for performing various jobs. Work force analysis would reveal the number and type of human resources already working in the organisation.

2. Recruitment:

It means identifying the sources of required personnel and inducing people to apply for jobs in the organisation. Recruitment of staff can be within the organisation as well as from outside.

3. Selection:

It is the process of choosing and appointing the right candidates for various job positions in the organisation.

Several steps are involved in the process of employee selection. These steps include preliminary screening, filling-in applications, written tests, interview, medical

examination, checking references and issuing letter of appointment to the candidate. The candidates who best meet the requirements of the vacant job are selected.

4. Placement:

It implies putting the selected candidates on right jobs. An appropriate job is assigned to each selected person. After the selected candidates join the organisation, they are placed on appropriate jobs.

Placement is the process of matching the candidates with the jobs in the organisation. Under this process, every selected candidate is assigned a job most suitable for him.

The purpose of placement is to fit square pegs into square holes i.e., the right person to the right job), that the efficiency of work is high and the employees get personal satisfaction. While assigning the job to new employees, the requirement of the organisation as well as that of the employees should be considered.

The number of jobs, skills required for different jobs, location of the job, employee’s knowledge, his marital status, his home town, etc. are some of these considerations. Correct placement helps to reduce labour turnover and absenteeism. In fact, proper placement goes a long way in building up a competent and satisfied work force.

5. Orientation:

It is the process of introducing and familiarizing newly appointed candidates with their jobs, work groups and the organisation so that they may feel at home in the new environment. It is a process of socialization.

When a new employee reports for work, he must be helped to become familiar with the work environment and the fellow employees. This is done by providing information to him on the requirements of the job, the superiors under whom he will work, the rules and regulations he should observe and the facilities and benefits available. A systematic orientation programme helps to make the employee feel at home and reduces the initial nervousness on his part. The main objectives of an orientation programme are:

(a) To build up the new employee's confidence in himself and in the new organization so that he may become an efficient employee.

(b) To give the necessary information to the employee about the location of work rooms, canteen and other facilities, leave rules, rest period, etc.

(c) To develop a feeling of belonging and loyalty to the organisation. (d) To ensure that the new employee does not form a false opinion about the organisation because first impression is the last impression.

In small organisations, orientation may be informal. But in large firms, a formal orientation programme is organised to supply the following type of information to the new employees:

Company's history and products

Company's organisational structure

Location of departments and employee services

Rules and regulations

Personnel policies and practices

Grievance procedure

Safety measures

Standing orders

Terms and conditions of employment

6. Training and Development:

These involve improving job knowledge, skills and attitudes of employees on a regular basis so that they may perform their jobs efficiently.

4. What is the meaning of the recruitment?

Answer: -

Recruitment may be defined as the process of publicizing information about job vacancies in the organisation and inducing the prospective candidates to offer themselves for appointment in the organisation.

It is the process of searching for prospective employees and encouraging them to apply for jobs in the organisation.

It is an important part of staffing and it is an ongoing! process. The objective of recruitment is to procure a sufficiently large number of qualified candidates so that the most eligible employees can be selected. Therefore, recruitment is called a positive process. Recruitment brings together the job giver (employer) and the job seekers (applicants). Recruitment can be done either from inside or from outside the organisation.

5. What are the internal source of Recruitment?

Answer: -

Internal sources of recruitment consist of the people who are working or have worked in the enterprise. Internal sources are given below:

A. Promotion:

Promotion means shifting an employee from a lower job to a higher job involving increase in pay, status and responsibilities. For example, a factory worker may be promoted to the post of factory supervisor. Vacancies at higher levels may be filled up by promoting employees working at lower levels.

B. Transfer:

Transfer means shifting an employee from one job to another similar job without increase in pay, status and responsibilities. Job vacancies in one factory/branch may be filled through transfer of surplus staff from another factory or branch.

C. Ex-Employees:

In some cases, people who were earlier in the company's employment may be re-employed. These are called ex-employees. They may come back on their own. Alternatively, the company may contact them and offer jobs.

D. Recommendations by Employees:

Applicants introduced by present employees or their friends and relatives may prove to be a good source of recruitment. Such applicants are likely to be good employees because their background is partly known. A type of preliminary screening takes place because the present employees know both the company and the candidates and they

would try to satisfy both. Many family-owned concerns give preference to the candidates recommended by the employees as the later stand as sureties for the new recruits. Some organisations have agreements with the trade unions to give preference to relatives and friends of present or retired employees provided they possess the necessary qualifications and experience. Trade unions are an important source of recruiting workers in factories.

6. What are the advantages of internal source of recruitment?

Answer: - Internal sources of recruitment offer the following benefits:

Familiarity:

The organisation and its employees are already familiar to each other. The organisation knows the skills and abilities of the candidates. It need not spend much time and effort in tests, interviews, reference check, etc. Similarly, employees are familiar with the job requirements and working conditions in the organisation. They do not require orientation after selection. No reference check is needed.

Economy:

Minimum cost is involved in recruiting internal employees. The organisation need not spend money on informing and inducing them to apply.

Motivational Value:

Internal recruitment serves as a source of motivation and encouragement for employees. They can hope for promotion and transfer. They are induced to do their jobs well so as to earn the desired promotion and transfer. Filling up higher level vacancies by promoting employees from within the enterprise helps to improve the motivation and morale of employees.

Better Utilisation of Existing Talent:

Internal recruitment through promotion and transfer enables the enterprise to make best use of the talent of its employees. As employees look for promotion, labour turnover and absenteeism are reduced.

Internal recruitment is less time consuming.

7. What are the limitation of internal source of recruitment?

Answer: -

Internal recruitment suffers from the following drawbacks:

Limited Choice:

Internal recruitment restricts choice to existing employees only. Suitable candidates may not be available internally for some vacancies. In such cases, the enterprise has to look for external sources of recruitment. A new enterprise cannot use internal sources of recruitment.

Incomplete Source:

Internal recruitment cannot be a complete method in itself. The enterprise has to resort to external recruitment at some stage because all vacancies cannot be filled from within the organisation. Therefore, internal sources of recruitment are not fully reliable.

Inbreeding:

When an organisation depends too much on internal recruitment, fresh talent and new blood available outside does not enter the enterprise. Existing employees may continue to work and behave in old ways even after promotion and transfer.

Lack of Competition:

In the absence of competition from qualified candidates from outside, employees are likely to expect automatic promotion by seniority. They may become lethargic when they are sure of time bound promotion. Frequent transfers of employees may disturb the work routine of the organisation.

Conflict:

There may be infighting and conflict among the employees who aspire for promotion to the available vacancies. The employees who are not promoted may become unhappy and their efficiency may decline.

8. What are the various sources of external recruitment?

Answer: -

Direct recruitment:

In this method, a notice is put up on the company's notice board specifying the details of the vacant jobs. Job seekers assemble at the company's office on the specified date and time. Selection is done on the spot. This method is used for recruiting unskilled and semiskilled employees.

Advertisement:

Job vacancies are advertised in newspapers, journals and on television. This method provides a wider choice but it may bring in a flood of applications and many of them may be from quite unsuitable candidates.

Causal callers:

Sometimes unsolicited applicants visit offices in search of jobs. A list of such people can be prepared and screened to fill temporary vacancies. This is an inexpensive source.

Employment exchange:

Employment exchanges run by the Government can be used to fill operative jobs. These exchanges help to match demand and supply of personnel by serving as a link between job seekers and employers. However, the records of these exchanges are often outdated and many of the candidates referred by them do not tum up for selection.

Placement agencies:

These agencies maintain a data base of candidates and recommend suitable names. These are used for recruiting technical and managerial personnel. They charge fee for their services.

Campus recruitment:

Institutes of management and technology, and universities have become a popular source of recruitment for technical, professional and managerial personnel.

Recommendations of employees:

Candidates introduced by present employees can be a good source of recruitment. Background of such candidates is known and a preliminary screening is done by a recommending employee.

Labour contractors:

These contractors can provide unskilled workers at a short notice. However, if the contractor leaves all the workers employed through him may also leave.

9. What are the advantages of external source of Recruitment?

Answer: -

External sources of recruitment offer the following benefits:

Wider Choice:

External sources bring in a large number of candidates. The organisation can have a free hand in selecting the best possible candidates.

Fresh Talent:

The organisation can obtain talented candidates with fresh outlook from outside. This brings in new blood and new ideas into the enterprise. There are no inbuilt prejudices and preferences so common in internal recruitment. The organisation can attract qualified and trained people.

Healthy Competition:

Internal candidates have to compete with outside candidates for vacancies. They will work hard to show better performance.

Complete Source:

All types of job vacancies can be filled in through external sources of recruitment. All manpower needs cannot be met from internal sources. Expansion may create new jobs. Resignation, retirement, death and dismissal of employees also create vacancies. Therefore, recruitment from outside is necessary.

10. What are the limitation of external source of Recruitment?

Answer: -

External sources of recruitment suffer from the following drawbacks:

Frustration among Present Employees:

Recruitment from outside may cause dissatisfaction and frustration among the existing employees who aspire for promotion but fail to get the same. Their motivation and morale may decline. Relations between management and workers may also become strained.

Expensive Method:

Recruitment of staff from outside involves considerable expenditure on advertising job vacancies, holding tests and interviews and orientation of selected candidates.

Time Consuming:

External recruitment is very time consuming. The organisation has to publicise the vacancies and wait for response.

Uncertain Source:

The enterprise may not be able to attract suitable candidates even after advertisement. The applicants from outside may not be suitable for the enterprise.

11. What is the meaning of Selection?

Answer: -

Selection is the process of carefully screening the candidates so as to identify and choose the most suitable persons for the job vacancies to be filled.

Under it the qualifications, experience and background of applicants are evaluated in the light of job requirements.

It is the process of dividing the candidates into two categories, namely (a) those who are to be employed, and (b) those who are to be rejected.

It is called a negative process because unsuitable candidates are eliminated or rejected in order to identify the suitable candidates.

The number of candidates rejected are much more than those actually selected. Moreover, tests, interviews and other techniques of selection are more reliable for rejection of unsatisfactory candidates than for identifying the ideal candidates.

Selection is always done after recruitment. The basic purpose of selection is to choose the right type of candidates to fill various positions in the organisation.

12. What is the difference between Recruitment and Selection?

Answer: -

Point of Distinction

Recruitment

Selection

1. Meaning

Searching prospective employees and stimulating them to apply for jobs Positive process.

Choosing the candidates having necessary qualifications.

2. Nature

Positive process

Negative process

3. Aim

To create a large pool of candidates

To eliminate all unsuitable candidates

4. Process

Simple as candidates are not required to cross many hurdles

Complex as the candidates is required to cross several hurdles

5. Number

No restrictions upon the number of candidates

Only a limited number of candidates are selected

6. Order

It is done prior to selection

It is made only after recruitment

13. What are the successive stages to selection?

Answer: -

SUCCESSIVE STAGES OR HURDLES IN SELECTION ARE AS FOLLOWS: -

1. Preliminary Screening:

The purpose of a preliminary interview is to see whether the candidate is apparently suitable physically and mentally for the job.

It is meant to see and size up the candidate. This is essentially to check whether the candidate fulfills the minimum qualifications. The preliminary interview is generally quite brief.

It aims to eliminate the unsuitable candidates. The job seekers are received at the reception counter of the company. The receptionist or some other official interviews the candidate to determine whether it is worthwhile for the candidate to fill up the application blank.

Candidates possessing the minimum qualifications and having some chance of being selected are given the prescribed application form known as application blank.

2. Application Blank:

The candidates are required to give full information about their age, qualifications, experience, family background, aptitudes and interests, etc. in the application blank.

The application blank provides a detailed written record about the candidate. The application form should be designed to obtain all relevant information about the candidate. All applications received from the candidates are carefully scrutinized. After the scrutiny, more suitable among the applicants are short-listed for a written test and others are rejected. The details given in the application form serve as a basis for interviewing the candidates. There may be different application forms for different jobs.

3. Employment or Selection Tests:

Candidates are asked to appear for written or other tests. Tests have become a popular screening device. These tests are based on the assumption that human traits and work behaviour can be predicted by sampling.

The aim of tests is to measure such skills and aptitudes which are necessary for performing the job efficiently. Individuals differ in their physical and mental qualities. Various types of tests are used to judge these qualities. However, tests are not fully reliable and they also involve time and money. Tests are more useful in identifying and eliminating unsuitable candidates. Therefore, test should be used only as a supplement rather than as an independent technique of selection. The main types of employment tests are as follows:

(a) Proficiency tests: These tests are designed to measure the skills and knowledge which a candidate already possesses. They are helpful in verifying a candidate's claim about his knowledge and skills. Proficiency tests are of two types:

Achievement or trade test: It seeks to measure the applicant's level of knowledge and skill in a particular trade or occupation. For example, an applicant for an accountancy job may be asked to take up a test in accountancy.

Skill or dexterity test: It seeks to measure how quickly and efficiently a candidate performs the job in question. For example, candidates for a typing job may be asked to type a page so as to judge their speed and accuracy in typing.

(b) Aptitude tests: These tests are designed to measure the potential for acquiring necessary knowledge and skills for doing a job well in future. Aptitude tests are of the following types:

Intelligence test: It seeks to measure a person's mental alertness in terms of reasoning, comprehension, memory, capacity to relate things, etc. The number of questions answered correctly within a specified time will indicate the candidate's

Intelligence Quotient (IQ). This test indicates a person's learning ability.

Interest test: It seeks to measure a person's interest in a particular kind of work. It is helpful in finding out the work for which the candidate has the greatest liking.

Personality test: It seeks to measure temperament and emotional make up of a person. It provides clues to a person's emotions, maturity level and value system.

14. What are the advantages of Selection?

Answer: -

Tests offer the following benefits in employee selection:

Tests provide a good basis for measuring a candidate's suitability for the job.

Tests are useful in checking and verifying the claims made by the candidate about his qualifications and experience.

Tests are an objective method of assessing a candidate.

Tests are useful in establishing standards of job performance.

15. What are the disadvantages of Selection Tests?

Answer: -

Tests suffer from the following limitations:

Tests are not fully reliable indicators of knowledge and skills of a candidate.

Bias or dishonesty on the part of people conducting the tests may produce misleading results. Tests are liable to misuse.

Tests may be unfair to candidates belonging to economically and socially backward sections of society. Sometimes tests may lead to discrimination between one candidate and another.

Some candidates may be afraid of tests and may avoid the rigours of a test. As a result, the organisation may lose otherwise qualified and experienced candidates.

4. Selection or Employment Interview:

It involves a formal and face-to-face conversation between the employer and the candidate. The selectors ask job related and general questions. The way in which a candidate responds to the questions is evaluated.

The objectives of the interview are:

(a) to find out the candidate's personality and overall suitability for the job.

(b) to cross-check the information obtained through application blank and tests, and

(c) to give an accurate picture of the job and the company to the candidate. Interview is the most widely used step in employee selection. There are some qualities which can be judged only through a face-to-face talk with candidates. However, interview suffers from several drawbacks.

Firstly, it is a time consuming and expensive device.

Secondly, it can test only the personality of the candidate and not his skills for the job.

Thirdly, the interviewer may not be an expert and may fail to extract all the relevant information from the candidate.

Fourthly, the personal judgment or bias of the interviewer may make the result of the interview inaccurate.

Interviews should be conducted in a proper physical environment. The interview room should be free from noise and interruption. The environment should be quiet and confidential. People generally talk freely and frankly when there is privacy and comfort. Therefore, candidates should be put at ease. Questions to be asked during the interview should be planned in advance. The interviewer should pay full attention to what the candidate says.

5. Medical or Physical Examination:

Candidates who are found suitable after interview are called for a physical examination. A medical check-up of such candidates is done by a panel of doctors to ensure that they are healthy and physically fit for the job. A proper medical examination and fitness test will also ensure that the candidates selected do not suffer from any serious disease which may create problem in future.

6. Checking References or Background:

Generally, every candidate is required to state in the application form the names and addresses of at least two responsible persons who know him.

These persons are contacted in writing or over telephone to collect information about the background, abilities and character of the candidate.

Verification of references might be useful in some cases. Some candidates may provide incorrect information about their previous jobs e.g., job title, salary, reasons for leaving, etc. References may reveal such discrepancies.

However, checking references may not yield the desired results because

(a) the referee may not always respond

(b) no candidate will give the name of a referee who might speak unfavourable about him, and

(c) a referee may deliberately speak against the candidate. The references may not give their frank opinion unless a promise is made that all information will be kept strictly confidential. Moreover, information given by them may be biased in favour of the candidate.

7. Final Approval/Job Offer:

The candidates who are found suitable after the medical check-up and background investigation are formally appointed by issuing appointment letters to them.

They are asked to join duty by the specified date. Once the candidate accepts the job offer, a written contract of employment is made between the employer and the candidate. Generally, the candidates are appointed on probation of one or two years.

No selection procedure is foolproof and the best way to judge a person is by observing him working on the job. Candidates who give satisfactory performance during the probationary period are made permanent.

Once the employees are recruited and selected, it becomes necessary to train and develop them so as to make them competent for performing the assigned jobs.

15. What is the meaning of Training?

Answer: -

Training is the process of improving the job knowledge and skills of employees so as to enable them to perform well.

It is an organised or systematic activity wherein people acquire knowledge and skills for doing a specific job. It is a two-way process because there must be someone to learn and someone to teach.

The purpose of training is to mould the behaviour of people so that they can do their jobs in a better way. In order to achieve this purpose, a training programme is used to improve the knowledge, skills and attitudes of employees.

Training is the process of imparting information and knowledge to the employees. As an organised activity, training is designed to create a change in the thinking and behaviour of people, Training is a continuous process because there is no end to learning and a person has to learn continuously new technology, new patterns of behaviour and new lifestyles. Training is necessary for both new as well as existing! employees so that they may perform their jobs properly. Training also helps employees to make progress in their careers.