Meaning of Staffing

Once the plans have been formulated and the organisational structure has been designed, the next crucial step in the management process is to breathe life into that structure by filling the various posts provided for in the organisation. This is the essence of the staffing function. In the simplest terms, staffing means ‘putting the right people into the right jobs’. It is the managerial function of filling and keeping filled the positions in the organisation structure.

However, staffing is not a one-time activity. It is a comprehensive and continuous function that begins with workforce planning and includes a series of other important activities such as recruitment, selection, training, development, promotion, compensation, and performance appraisal of the workforce. It is that part of the process of management which is concerned with obtaining, utilising, and maintaining a satisfactory and satisfied workforce. As famously stated by Narayana Murthy, former CEO of Infosys, “Our assets walk out of the door each evening. We have to make sure that they come back the next morning.” This perfectly encapsulates the critical importance of the human element that the staffing function manages.

Staffing in New vs. Existing Enterprises

In a new enterprise, the staffing function follows the planning and organising functions. After the objectives are set and the organisational structure is created, management knows the human resource requirements for the enterprise at different levels. It then begins the activities of recruiting, selecting, and training people to fill these roles.

In an existing enterprise, staffing is a continuous process. This is because the need for personnel is ongoing; new jobs may be created due to expansion, and vacancies may arise when existing employees leave the organisation for various reasons like retirement, resignation, promotion, or termination.

Importance of Staffing

Human resources are the foundation and the most valuable asset of any business. The success of an organisation is determined to a great extent by the competence, motivation, and performance of its people. The right people can help an organisation achieve its goals and reach new heights, while the wrong people can lead to its downfall. Therefore, staffing is a fundamental and critical driver of organisational performance. Its importance has grown significantly in recent times due to factors like the rapid advancement of technology, the increasing size and complexity of organisations, and the complicated nature of human behaviour.

Proper staffing ensures the following benefits to an organisation:

(i) Discovering and Obtaining Competent Personnel

The primary benefit of a robust staffing function is that it helps in discovering and obtaining competent and qualified personnel for various jobs within the organisation. Through a systematic process of recruitment and selection, an organisation can attract a pool of candidates and choose the most suitable ones who have the required skills, knowledge, and attitude.

(ii) Higher Performance

Staffing ensures higher organisational performance by putting the right person on the right job. When there is a good match between the job requirements and the individual's qualifications, skills, and abilities, their performance is naturally better. This leads to increased productivity, better quality of work, and contributes to the overall effectiveness of the organisation.

(iii) Continuous Survival and Growth

A well-managed staffing function ensures the continuous survival and growth of the enterprise through succession planning for managers. It helps in identifying and grooming talented employees within the organisation, preparing them for future leadership roles. This ensures that the organisation has a pipeline of capable managers ready to take over in case of retirements or unexpected departures, thus ensuring stability and continuity.

(iv) Optimum Utilisation of Human Resources

Staffing helps to ensure the optimum utilisation of human resources. By performing a careful analysis of manpower requirements, it helps in avoiding two major problems:

• Overmanning: This prevents the under-utilisation of personnel and avoids high labour costs.

• Undermanning: By indicating in advance any shortages of personnel, it helps in avoiding the disruption of work and ensures that the organisation is not understaffed.

(v) Improves Job Satisfaction and Morale

A systematic staffing process, which includes an objective assessment of performance and a fair system of rewards and promotions for employee contributions, improves the job satisfaction and morale of employees. When employees feel that the organisation is fair, values their contribution, and provides opportunities for growth, their motivation and commitment increase significantly.

Staffing as Part of Human Resource Management (HRM)

Staffing is a core function that all managers need to perform. However, as organisations grow and the number of people employed increases, managing the human component becomes a complex and specialised area. This has led to the emergence of Human Resource Management (HRM) as a distinct and specialised functional area of management, often handled by a dedicated Human Resource (HR) Department.

Evolution of Human Resource Management

HRM in its present form has evolved from the traditional concepts of labour welfare and personnel management. The evolution can be traced back to the era of the industrial revolution.

• The emergence of the trade union movement led to the need for a Labour Welfare Officer, who acted as a link between owners and workers.

• With the rise of the factory system, the job of hiring people was given to a single person, which led to the emergence of the Personnel Officer, responsible for recruitment, selection, and placement.

• The Human Relations Approach recognised the human factor as the most important instrument of success. This, combined with fast-changing technology, necessitated skill development and training. People came to be recognised as a valuable resource that could be developed.

• This increase in the scope of work led to the replacement of the Personnel Manager with the Human Resource Manager.

Thus, staffing is an inherent and essential part of the broader concept of Human Resource Management.

Staffing as a Line and Staff Activity

It is important to understand that staffing is both a function of management (just like planning, organising, directing, and controlling) and a distinct functional area of management (just like marketing and finance). Therefore, staffing is referred to as both a line activity and a staff activity.

• Line Activity: It is the direct responsibility of every manager to manage their team. This includes selecting people, training them, and appraising their performance.

• Staff Activity: In larger organisations, the HR department performs an advisory or staff role. It assists the line managers by providing specialised services and expertise in areas like recruitment, selection, and legal compliance.

Specialised Activities in HRM

HRM includes a wide range of specialised activities and duties that HR personnel must perform. These include:

• Recruitment: Searching for and attracting a pool of qualified people.

• Job Analysis: Collecting detailed information about jobs to prepare job descriptions and specifications.

• Compensation and Incentive Plans: Developing fair, equitable, and motivating pay structures.

• Training and Development: Designing and conducting programs to enhance employee skills and facilitate career growth.

• Labour Relations: Maintaining good and harmonious relations with unions and employees.

• Grievance Handling: Establishing a system for addressing employee complaints and grievances.

• Social Security and Welfare: Administering and providing for the social security and welfare of employees.

• Legal Compliance: Defending the company in lawsuits and ensuring that all HR practices comply with labour laws.

Staffing Process

The prime concern of the staffing function in the management process is the timely fulfillment of the manpower requirements within an organisation. This involves a systematic process with a series of logical steps, starting from understanding the manpower needs to ensuring their long-term contribution to the organisation.

(i) Estimating the Manpower Requirements

The first step in the staffing process is to understand the manpower requirements of the organisation. This is not just about knowing how many people are needed, but also what type of people (with what qualifications and skills) are needed. This step involves two key analyses:

• Workload Analysis: This is an assessment of the number and types of human resources necessary for the performance of various jobs and the accomplishment of organisational objectives.

• Workforce Analysis: This is an assessment of the number and type of employees already available within the organisation.

By comparing the workload analysis with the workforce analysis, the management can find out whether the organisation is understaffed, overstaffed, or optimally staffed, which then forms the basis for the next steps.

(ii) Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The objective of recruitment is to create a large pool of qualified job candidates from which the best and most suitable can be selected. It is a positive process as it aims to attract as many candidates as possible.

(iii) Selection

Selection is the process of choosing the best and most suitable person from among the pool of prospective job candidates that was developed at the stage of recruitment. It is often described as a negative process as it involves rejecting a large number of unsuitable candidates to identify the right ones. The rigour of the selection process, which involves tests and interviews, ensures that the organisation gets the best available talent.

(iv) Placement and Orientation

Once a candidate is selected, the next steps are placement and orientation.

• Placement refers to the employee occupying the position or post for which they have been selected.

• Orientation (or induction) is the process of introducing the selected employee to other employees and familiarising them with the rules, policies, and culture of the organisation. A good orientation program is crucial as it can have a lasting impact on the employee's morale, performance, and decision to stay with the company.

(v) Training and Development

To enhance the competence of employees and to motivate them, organisations must provide opportunities for them to grow and develop. This is done through training and development programs.

• Training is a process of learning new skills and applying knowledge to improve performance on the current job.

• Development refers to the learning opportunities designed to help employees grow in all respects and prepare them for future responsibilities.

By offering these opportunities, organisations can not only attract but also retain talented people.

(vi) Performance Appraisal

After the employees have undergone a period of training and have been on the job for some time, there is a need to evaluate their performance. Performance appraisal is the process of evaluating an employee’s current and/or past performance against certain pre-determined standards. A proper appraisal process involves defining the job, appraising the performance, and providing regular feedback to the employee.

(vii) Promotion and Career Planning

It is necessary for all organisations to address the career-related issues and provide promotional avenues for their employees. Managers need to design activities to serve their employees’ long-term interests. Promotions are an integral part of an employee's career and refer to being placed in positions of increased responsibility. They usually mean more pay, better status, and higher job satisfaction.

(viii) Compensation

Compensation refers to all forms of pay or rewards that are given to employees. It is the price of the job. A fair and equitable compensation plan is essential for attracting and retaining a motivated workforce. Compensation can be in the form of:

• Direct Financial Payments: These can be time-based (daily, weekly, or monthly wages and salaries) or performance-based (incentives, commissions, and bonuses).

• Indirect Payments: These include benefits like employer-paid insurance, vacations, and other perks.

Recruitment

Recruitment is a crucial step in the staffing process. It is the process of finding possible candidates for a job or a function. It has been defined as ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.’ The primary objective of recruitment is to create a large pool of qualified applicants from which the organisation can choose the best and most suitable candidates. It is often referred to as a positive process because its aim is to attract as many applications as possible to increase the selection ratio.

Sources of Recruitment

The requisite positions in an organisation may be filled up from within the organisation or from outside. Thus, there are two main sources of recruitment: internal and external.

Internal Sources

Internal sources of recruitment refer to filling vacant job positions from within the organisation, using the existing employees. The two most important sources of internal recruitment are transfers and promotions.

1. Transfers: This involves the shifting of an employee from one job to another, one department to another, or from one shift to another, without a significant change in their responsibilities, status, or pay. It is a horizontal movement of employees and is a good way of filling vacancies with employees from over-staffed departments.

2. Promotions: This involves shifting an employee to a higher position, carrying higher responsibilities, facilities, status, and pay. It is a vertical shifting of employees. Filling higher-level jobs through promotion is a common practice that helps to improve the motivation, loyalty, and satisfaction level of employees.

Merits of Internal Sources:

• Boosts Employee Morale: It motivates employees as they see a clear path for career progression.

• Simplifies Selection: The process of selection and placement is simplified as candidates are already known to the organisation.

• More Reliable and Economical: It is a more reliable way of recruitment as the candidates' performance is known, and it is cheaper as there are no costs associated with advertising or external agencies.

• Tool for Training: Transfers can be used as a tool for training employees to prepare them for higher jobs by exposing them to different roles.

Limitations of Internal Sources:

• Reduces Scope for Fresh Talent: It stops the infusion of 'new blood' into the organisation, which can lead to a lack of new ideas and innovation.

• May Cause Lethargy: Employees may become lethargic if they are sure of time-bound promotions without competition from outside.

• Not Suitable for New Enterprises: A new enterprise cannot use internal sources of recruitment as it has no existing employees.

External Sources

External sources of recruitment refer to filling vacant job positions from outside the organisation. This provides a wider choice and brings new talent into the organisation. The commonly used external sources are:

1. Direct Recruitment: A notice is placed on the notice-board of the enterprise specifying the details of the jobs available. This method is suitable for filling casual vacancies of unskilled or semi-skilled jobs.

2. Casual Callers: Many reputed business organisations keep a database of unsolicited applicants who have applied for jobs in the past. This is an inexpensive way to recruit.

3. Advertisement: Advertising in newspapers, professional journals, or online is a common method used when a wider choice is required, especially for senior and specialised positions.

4. Employment Exchange: Government-run employment exchanges are a good source of recruitment for unskilled and skilled operative jobs. In some cases, it is compulsory by law to notify vacancies to the employment exchange.

5. Placement Agencies and Management Consultants: These private agencies provide a nationwide service in matching personnel demand and supply. They are particularly useful for recruiting technical, professional, and managerial personnel.

6. Campus Recruitment: Recruiting qualified personnel for various jobs directly from colleges, universities, and institutes of management and technology.

7. Recommendations of Employees: Applicants who are introduced by present employees, their friends, or relatives often prove to be a good source of recruitment as their background is sufficiently known.

8. Labour Contractors: They maintain close contacts with labourers and can provide the required number of unskilled workers at short notice.

9. Advertising on Television: The practice of telecasting vacant posts over television is gaining importance these days, especially for reaching a wide audience.

10. Web Publishing: The internet has become a major source of recruitment. There are numerous websites specifically designed for job seekers and employers, such as Naukri.com, Indeed, and LinkedIn.

Merits of External Sources:

• Qualified Personnel: Management can attract qualified and trained people to apply.

• Wider Choice: It provides the management with a wider choice when selecting people for employment.

• Fresh Talent: It brings in new blood and new perspectives into the organisation.

• Competitive Spirit: It fosters a competitive spirit among the existing staff.

Limitations of External Sources:

• Dissatisfaction Among Existing Staff: It may lead to dissatisfaction and frustration among existing employees who feel their chances of promotion are reduced.

• Lengthy and Costly Process: Recruitment from external sources takes a long time and is very costly, involving expenses on advertising and processing applications.

Selection

Selection is the process of identifying and choosing the best and most suitable person out of a number of prospective candidates for a particular job. It follows the recruitment process. While recruitment is a positive process aimed at attracting candidates, selection is a negative process as it involves the elimination of unsuitable candidates at each stage to find the right fit. The effectiveness of the selection process is ultimately tested by the on-the-job performance of the chosen person.

Process of Selection

A rigorous selection process involves a series of steps. The important steps in the process of selection are as follows:

1. Preliminary Screening: The first step is to screen the applications received to eliminate unqualified or unfit job seekers based on the information supplied in their application forms. A brief preliminary interview may also be conducted at this stage to check for basic suitability.

2. Selection Tests: An employment test is a mechanism that attempts to measure certain characteristics of individuals, such as their aptitudes, intelligence, and personality. The important types of tests used for the selection of employees are:

   • Intelligence Tests: To measure the level of intelligence quotient (IQ), which is an indicator of a person’s learning ability and decision-making skills.

   • Aptitude Test: To measure an individual's potential for learning new skills and their capacity to develop.

   • Personality Tests: To provide clues to a person’s emotions, reactions, maturity, and value system.

   • Trade Test: To measure the existing skills and the level of knowledge and proficiency of the individual in a particular trade or technical area.

   • Interest Tests: To know the pattern of interests or involvement of a person, which helps in matching them with jobs they might enjoy.

3. Employment Interview: This is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job. It allows the interviewer to seek more information from the candidate and also gives the candidate an opportunity to learn more about the organisation.

4. Reference and Background Checks: Many employers request the names, addresses, and telephone numbers of references for the purpose of verifying the information provided by the applicant and gaining additional insights into their character and past performance. References can include previous employers, teachers, or known persons.

5. Selection Decision: The final decision has to be made from among the candidates who have successfully passed all the previous hurdles. The views of the concerned manager under whom the new employee will work are generally given significant consideration in the final selection.

6. Medical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test to ensure they are physically fit to perform the job.

7. Job Offer: The next step in the selection process is to make a formal job offer to those applicants who have passed all the previous stages. The job offer is made through a letter of appointment, which confirms their selection.

8. Contract of Employment: After the job offer has been made and the candidate has accepted it, a formal contract of employment is prepared and signed. This document includes all the necessary details about the job, such as the job title, duties, responsibilities, rates of pay, allowances, hours of work, and leave rules.

Training and Development

As someone has rightly said, “If you wish to plan for a year, sow seeds; If you wish to plan for 10 years, plant trees; If you wish to plan for a lifetime, develop people.” Training and Development is a vital function that aims to improve the current or future performance of an employee by increasing their ability to perform through learning. This is usually done by changing the employee’s attitude or by increasing their skills and knowledge. As jobs have become more complex due to rapid technological and environmental changes, the importance of continuous employee training has increased significantly.

Importance of Training and Development

A systematic approach to training and development benefits both the organisation and the individual employee in numerous ways.

Benefits to the Organisation

• Systematic Learning: Training is a systematic learning process, which is always better and more efficient than hit-and-trial methods that lead to a wastage of time, effort, and money.

• Enhanced Productivity: It enhances employee productivity, both in terms of quantity and quality of output, which ultimately leads to higher profits.

• Prepares Future Managers: Training equips employees with the necessary skills to take over in case of an emergency and prepares them for future managerial roles (succession planning).

• Increased Morale, Reduced Turnover: It increases employee morale and job satisfaction, which helps in reducing absenteeism and employee turnover.

• Adaptability: It helps the organisation in obtaining an effective and quick response to a fast-changing technological and economic environment.

Benefits to the Employee

• Better Career Prospects: Improved skills and knowledge acquired through training lead to a better and more prosperous career for the individual.

• Higher Earnings: Increased performance by the individual as a result of training helps them to earn more through incentives and bonuses.

• Increased Safety: Training makes the employee more efficient in handling machines and equipment, thus making them less prone to accidents.

• Higher Satisfaction and Morale: Training increases the job satisfaction and morale of employees by giving them a sense of competence and value.

Difference between Training and Development

While the terms training and development are often used interchangeably, they are distinct concepts.

Training Methods

There are various methods of training that an organisation can use. These are broadly categorised into two groups: On-the-Job methods and Off-the-Job methods.

On-the-Job Methods

These methods are applied at the actual workplace while the employee is working. The principle here is 'learning while doing'.

1. Apprenticeship Programmes: The trainee is put under the guidance of a master worker for a prescribed period to acquire a higher level of skill in a trade (e.g., plumbers, electricians, iron-workers).

2. Coaching: The superior guides and instructs the trainee as a coach. The trainee works directly with a senior manager, who takes full responsibility for the trainee’s coaching and development.

3. Internship Training: This is a joint programme of training in which educational institutions and business firms cooperate. Selected candidates carry on their regular studies and also work in a factory or office for a specific period to acquire practical knowledge and skills.

4. Job Rotation: This kind of training involves shifting the trainee from one department to another or from one job to another. This enables the trainee to gain a broader understanding of all parts of the business.

Off-the-Job Methods

These methods are used away from the workplace. The principle here is 'learning before doing'.

1. Classroom Lectures/Conferences: This traditional approach is well-adapted to conveying specific information, rules, procedures, or methods to a large group of trainees.

2. Films: Films can provide information and explicitly demonstrate skills that are not easily represented by other techniques.

3. Case Study: Trainees are given real or hypothetical business problems (cases) to study. They are required to determine the problems, analyse the causes, develop alternative solutions, and select the best solution.

4. Computer Modelling: This method simulates the work environment by programming a computer to imitate some of the realities of the job. It allows trainees to learn in a risk-free environment.

5. Vestibule Training: Employees learn their jobs on the actual equipment they will be using, but the training is conducted away from the actual work floor in a simulated, classroom-like environment. This is often done when employees are required to handle sophisticated machinery.

6. Programmed Instruction: This method incorporates a pre-arranged and proposed acquisition of some specific skills or general knowledge. Information is broken down into meaningful units, and the trainee goes through these units by answering questions or filling in the blanks at their own pace.

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