Staffing

Introduction

Every organisation needs qualified people to perform various jobs. The staffing function of management deals with procuring, developing, and maintaining the human resource of the organisation. It is about putting people into jobs.

Staffing is a fundamental managerial function. Initially, staffing was seen merely as a part of the 'Organising' function, focused on filling job positions. However, with increasing size and complexity of organisations and rapid advancements in technology, the human factor became critically important. Thus, staffing evolved into a distinct and crucial function.

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Meaning

Staffing is defined as the managerial function of filling and keeping filled the positions in the organisation structure. This is done by identifying manpower requirements, recruitment, selection, placement, promotion, appraisal, and development of personnel.

It is not just about hiring people; it encompasses various activities related to human resources throughout their tenure in the organisation.

The essence of staffing is putting the right person in the right job at the right time.

Importance Of Staffing

Staffing is a crucial function for the success of any organisation. Its importance stems from the fact that human resources are the most valuable asset.

The importance of staffing is highlighted by the following points:

1. Helps in Obtaining Competent Personnel: Proper staffing helps in discovering and obtaining competent personnel for various jobs. It involves activities like recruitment and selection, which aim at finding the right talent.

2. Ensures Higher Performance: By putting the right person on the right job, staffing ensures higher performance by employees. Qualified, trained, and motivated employees contribute significantly to productivity.

3. Ensures Continuous Survival and Growth: Staffing ensures the continuous survival and growth of the enterprise through the succession plan for managers and the development of employees.

4. Ensures Optimum Utilisation of Human Resources: Staffing helps in avoiding over-manning (more staff than required) or under-manning (less staff than required). It matches jobs with individuals, ensuring the best possible use of human talent and preventing wastage of resources.

5. Improves Job Satisfaction and Morale: Proper selection, fair compensation, adequate training, and opportunities for development and promotion result in higher job satisfaction and morale among employees.

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Staffing As Part Of Human Resource Management

In many modern organisations, staffing is seen as a subset of a broader concept called Human Resource Management (HRM). HRM is a specialised field that deals with all aspects of human resources, including strategic planning, human resource planning, job analysis, recruitment, selection, training and development, compensation and benefits, performance appraisal, industrial relations, and employee welfare.

Staffing specifically focuses on the process of acquiring and developing personnel. HRM encompasses a much wider scope, treating people as valuable resources that need to be managed strategically for competitive advantage.

In smaller organisations, a single manager might handle all staffing-related duties. In larger organisations, a dedicated Human Resources Department is established to perform HRM functions, of which staffing is a core part.

Evolution Of Human Resource Management

The concept of managing people in organisations has evolved over time. From a focus on basic labour welfare and administration, it grew into personnel management and eventually transformed into Human Resource Management.

Evolutionary stages (simplified):

1. Labour Welfare Phase: Focus on basic facilities and worker well-being.

2. Personnel Management Phase: Focus on recruitment, selection, training, wages, and employee relations. Primarily administrative.

3. Human Resource Management Phase: Treating employees as valuable resources, integrating HR strategies with overall business strategy, focusing on employee development, motivation, and performance linked to organisational goals.

Today, HRM is a strategic function that contributes directly to the achievement of organisational objectives. Staffing is a core process within this strategic framework.

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Staffing Process

The staffing process involves a series of interconnected steps that ensure the organisation has the right people in the right places. These steps are:

1. Estimating Manpower Requirements

2. Recruitment

3. Selection

4. Placement and Orientation

5. Training and Development

6. Performance Appraisal

7. Promotion and Career Planning

8. Compensation

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Estimating The Manpower Requirements

This is the first step in the staffing process. It involves determining the number and type of personnel required by the organisation in the future. It's essentially human resource planning.

It involves:

a) Workload Analysis: Determining the number and types of human resources required to perform specific tasks and achieve the planned workload.

b) Workforce Analysis: Analysing the existing workforce inventory (skills, age, qualifications, performance levels, etc.) and predicting future availability (due to retirements, resignations, promotions).

c) Comparing Workload and Workforce: Comparing the required workforce (workload analysis) with the available workforce (workforce analysis) to determine the need for recruitment (if requirement > availability) or identify surplus staff (if requirement < availability).

Example: If workload analysis shows a need for 10 software engineers in the next year, and workforce analysis shows only 5 engineers available (others retiring or transferring), the requirement is 5 engineers.

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Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. It is a positive process that aims at attracting a large pool of candidates.

It involves identifying sources of potential employees and persuading them to apply.

Example: Advertising open positions on job portals, company website, newspapers, or through placement agencies.

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Selection

Selection is the process of choosing the best candidate from the pool of applicants generated during recruitment. It is a negative process as it involves rejecting unsuitable candidates to find the one most suitable for the job.

It involves various steps like screening applications, tests, interviews, etc.

Example: Shortlisting resumes, conducting written tests, interviews, and checking references to select the candidate for the software engineer position.

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Placement And Orientation

Placement refers to the process of assigning a selected candidate to the job for which he/she is selected. It involves putting the right person in the right job.

Orientation (or Induction) is the process of introducing the new employee to the organisation, their job, their colleagues, superiors, and the rules and policies of the organisation. It helps the new employee to adjust to the new environment quickly.

Example: The selected software engineer is assigned to a specific team and project (Placement). He/she is then introduced to the team members, explained the company culture, and given information about company policies (Orientation).

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Training And Development

Training is the process of increasing the knowledge and skills of an employee for doing a particular job. It is job-oriented.

Development refers to the overall growth of the employee, including increasing their capabilities for future roles and responsibilities. It is career-oriented.

Organisations invest in training and development to improve employee performance, increase efficiency, and prepare them for future challenges.

Example: Providing training on a new software language to the software engineer (Training). Providing opportunities to work on challenging projects and attend workshops to enhance overall leadership and technical skills (Development).

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Performance Appraisal

Performance appraisal is the process of evaluating an employee's current or past performance relative to their performance standards. It helps in assessing the employee's contribution and identifying their strengths and weaknesses.

It provides feedback to the employee and helps management in making decisions regarding promotions, transfers, and training needs.

Example: Annually evaluating the performance of the software engineer based on project completion time, code quality, teamwork, etc.

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Promotion And Career Planning

Promotion refers to the movement of an employee to a higher position in the organisational hierarchy, which usually involves increased responsibility, status, pay, and opportunities.

Career Planning is the process through which an employee plans his/her career goals and the path to achieve them. The organisation supports this by providing opportunities for growth and advancement.

Example: Promoting the software engineer to a Senior Software Engineer position based on excellent performance (Promotion). Discussing potential career paths within the company and providing training for higher roles (Career Planning).

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Compensation

Compensation refers to the remuneration (salary, wages, incentives, bonuses, benefits) employees receive in return for their services. It includes both direct payments (wages, salary) and indirect payments (insurance, leave, housing allowance).

Designing a fair and equitable compensation system is crucial for attracting, retaining, and motivating employees.

Example: Deciding the salary structure, annual increments, performance bonuses, and employee benefits (like health insurance, Provident Fund) for the software engineer.

Aspects Of Staffing

The staffing function includes several key aspects or sub-functions. The primary aspects discussed here are Recruitment, Selection, and Training & Development.

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Recruitment

As discussed earlier, Recruitment is the process of finding and attracting prospective candidates to apply for jobs in the organisation. It is the initial step in the staffing process after manpower requirements are estimated.

It is considered a positive function because its aim is to increase the pool of applicants from which suitable candidates can be selected.

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Sources Of Recruitment

Organisations can tap into various sources to find potential candidates. These sources are broadly classified into Internal Sources and External Sources.

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Internal Sources

Internal sources of recruitment involve hiring from within the organisation. The most common internal sources are Promotions and Transfers.

1. Promotion: Moving an employee to a higher position with increased responsibility, status, and pay. It's a vertical shift.

2. Transfer: Shifting an employee from one job to another, one department to another, or one branch to another, without significant change in responsibility, status, or pay. It's a horizontal shift.

Merits of Internal Sources:

a) Motivational: Promotions motivate existing employees to improve performance and aspire for higher positions.

b) Simple and Cheaper: The recruitment and selection process is simpler and less expensive compared to external sources.

c) Familiarity: Existing employees are already familiar with the organisation's rules, culture, and working environment.

d) Reliable: The organisation knows the employee's performance, capabilities, and track record, making selection more reliable.

e) Employee Satisfaction: Provides opportunities for growth within the organisation, leading to higher employee satisfaction and loyalty.

Limitations of Internal Sources:

a) Limited Pool: The choice of candidates is limited to the existing employees.

b) No Fresh Talent: No new ideas or fresh talent enter the organisation.

c) Lethargy: Employees may become complacent if they are guaranteed promotion or transfer, regardless of performance.

d) Inter-departmental Conflict: Shifting employees through transfers can sometimes cause disruptions or conflicts in the departments.

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External Sources

External sources of recruitment involve hiring candidates from outside the organisation. These sources provide a wider pool of talent.

Some common external sources in India include:

1. Direct Recruitment: Pasting notices on company notice boards mentioning job requirements. Suitable for unskilled or semi-skilled jobs.

2. Casual Callers (Data Banks): Maintaining a database of unsolicited job applications. Suitable for entry-level positions.

3. Advertisement: Placing advertisements in newspapers, magazines, radio, or television. Suitable for various levels of jobs. Widely used.

4. Employment Exchange: Government-established agencies that match job seekers with vacancies. Mandatory notification for certain public sector jobs.

5. Placement Agencies and Management Consultants: Private agencies that specialise in recruitment. Placement agencies usually handle middle-level positions, while management consultants handle senior-level and technical positions.

6. Campus Recruitment: Recruitment from educational institutions like colleges and universities. Common for fresh graduates for entry-level professional or technical jobs.

7. Labour Contractors: Contractors maintain contact with labourers and provide them to organisations as needed. Suitable for manual or casual labour. Can exploit workers.

8. Advertisements on Television: Advertising vacant positions on television. Reaches a wide audience.

9. Web Publishing: Using internet-based job portals (like Naukri.com, LinkedIn, etc.) or company websites for advertising vacancies. Very popular now.

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Merits Of External Sources

a) Wide Choice: Provides a larger pool of candidates to choose from.

b) Fresh Talent: Brings new ideas, knowledge, and skills into the organisation.

c) Qualified Personnel: Access to candidates with specific qualifications and training not available internally.

d) Competitive Spirit: Hiring from outside introduces competition, motivating existing employees to perform better.

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Limitations Of External Sources

a) Costly: Involves significant costs related to advertising, screening, selection process, etc.

b) Time Consuming: The process of advertising, receiving applications, and conducting tests/interviews takes time.

c) Dissatisfaction Among Existing Staff: Hiring from outside for senior positions might demotivate existing employees who were aspiring for promotion.

d) Uncertainty: New employees may not adjust well to the company culture or their performance may not meet expectations, despite the rigorous selection process.

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Selection

Selection is the process of choosing the most suitable candidate from the pool of applicants for a job. It is a crucial step in staffing as it directly impacts the quality of the workforce. Selection is often described as a negative process because it involves eliminating unsuitable candidates.

A sound selection procedure aims to ensure that the organisation hires competent and potentially successful employees.

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Process Of Selection

The selection process typically involves a series of steps designed to evaluate candidates from various perspectives. The exact steps and their sequence may vary from organisation to organisation and job to job.

The general steps in the selection process are:

1. Preliminary Screening

2. Selection Tests

3. Employment Interview

4. Reference and Background Checks

5. Selection Decision

6. Medical Examination

7. Job Offer

8. Contract of Employment

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Preliminary Screening

This is the initial screening of applications received from various sources. It involves reviewing resumes and application forms to eliminate unqualified or unsuitable candidates based on basic criteria like age, qualification, experience, etc.

This helps in reducing the number of candidates for further steps, saving time and cost.

Sometimes, a preliminary interview is also conducted to further filter candidates.

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Selection Tests

Various tests are conducted to measure the suitability of candidates for the job. These tests help in assessing different aspects of a candidate, such as aptitude, intelligence, personality, and skills.

Common types of selection tests:

a) Intelligence Tests: Measure the candidate's IQ (Intelligence Quotient), assessing their learning ability and decision-making skills.

b) Aptitude Tests: Measure the candidate's potential to learn new skills. Indicates whether a candidate can learn and develop in a specific field.

c) Personality Tests: Assess the personality traits of a candidate, including their attitude, motivation, and interpersonal skills. Helps in understanding how a person will fit into the work environment.

d) Trade Tests: Measure the existing skills of the candidate. Assess proficiency in performing a specific job or task (e.g., typing test for a clerk, welding test for a welder).

e) Interest Tests: Measure the pattern of a person's interests to find out the kind of work he/she would like to do. Helps in matching interests with job requirements.

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Employment Interview

The interview is a formal in-depth conversation between the interviewer(s) and the candidate. Its purpose is to evaluate the candidate's personality, communication skills, attitude, knowledge, and suitability for the job.

It provides an opportunity for the interviewer to gather information not covered in tests and for the candidate to ask questions about the job and organisation.

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Reference And Background Checks

Before making a final offer, organisations often check the references provided by the candidate (previous employers, teachers, known individuals). This helps in verifying the information provided by the candidate and gaining insights into their past performance, behaviour, and character.

Background checks might include verifying educational qualifications, employment history, and sometimes criminal records, especially for sensitive positions.

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Selection Decision

Based on the results of the tests, interviews, and reference checks, the final decision about which candidate to select is made. Usually, the recommendations from the selection committee or panel are considered, and the top-ranked candidate is chosen.

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Medical Examination

A medical examination is often conducted to ensure that the selected candidate is physically fit to perform the job. It protects the organisation from hiring individuals with health conditions that might affect their performance or pose risks to themselves or others.

It also helps in identifying any health issues that might require special attention or accommodation.

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Job Offer

Once a candidate is selected and passes the medical examination, a formal job offer is made. The job offer letter includes details such as the job title, roles and responsibilities, salary, working hours, reporting relationships, date of joining, etc.

The candidate is given a certain period to accept the offer.

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Contract Of Employment

After the candidate accepts the job offer, a contract of employment is prepared. This contract formalises the relationship between the employee and the organisation. It outlines the terms and conditions of employment, including salary scale, working hours, leave rules, grievance procedures, disciplinary rules, termination clause, etc.

A copy of the contract is usually signed by both the employer and the employee.

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Training And Development

After an employee is selected and placed, the next crucial aspect of staffing is Training and Development. These activities are essential for ensuring that employees have the necessary skills and knowledge to perform their jobs effectively and grow within the organisation.

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Importance Of Training And Development

Training and development provide benefits to both the organisation and the employees:

Benefits to the Organisation:

1. Reduces Wastage: Trained employees use resources more efficiently, leading to less wastage of materials and efforts.

2. Higher Productivity: Training improves skills and knowledge, leading to better performance and increased productivity.

3. Increased Morale: Training and development opportunities improve employee morale and reduce absenteeism and employee turnover.

4. Effective Response to Change: Training helps employees adapt to changes in technology, work methods, and market conditions.

5. Better Human Relations: Training in interpersonal skills helps build better relationships among employees and managers.

Benefits to the Employees:

1. Improved Skills and Knowledge: Enhances job performance and increases confidence.

2. Career Advancement: Development activities prepare employees for higher positions and better career prospects.

3. Higher Earnings: Improved performance and higher-level skills can lead to promotions and increased pay.

4. Safety: Training helps employees operate machinery and equipment safely, reducing accidents.

5. Job Satisfaction: Feeling competent and having opportunities for growth increases job satisfaction.

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Training, Development And Education

These terms are related but have distinct meanings:

Training: A process of increasing the knowledge and skills of employees for doing a particular job. It is job-specific and aims at improving current performance. Example: Training a salesman on how to use a new billing software.

Development: A process of overall growth of the employee. It is broader than training and aims at improving capabilities for future roles and responsibilities. Example: Sending a manager for a leadership development workshop.

Education: The process of increasing the general knowledge and understanding of employees. It is broader than development and aims at improving overall understanding and logical reasoning. Example: Providing tuition reimbursement for an employee pursuing an MBA degree.

$$ \text{Education} \quad \supset \quad \text{Development} \quad \supset \quad \text{Training} $$

(Education is the broadest, Development is narrower than education but broader than training, Training is the most specific and job-focused).

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Training Methods

Various methods are used for training employees. They can be broadly classified into On-the-Job Methods and Off-the-Job Methods.

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On The Job Methods

These methods involve training the employees while they are performing their actual jobs. The trainee learns by doing, under the guidance of a supervisor or experienced worker.

1. Apprenticeship Programmes: Trainees work under the guidance of a master worker for a stipulated period to acquire skills in a craft (e.g., plumber, electrician). Involves a mix of theoretical instruction and practical work.

2. Coaching: A superior guides and instructs the subordinate as a coach. The superior delegates assignments and opportunities to the subordinate to help them improve performance and capabilities.

3. Internship Training: Joint programme of training where educational institutions and businesses cooperate. Selected candidates work in a company for a specific period to gain practical experience, while also attending classes.

4. Job Rotation: Shifting the trainee from one job to another or one department to another at regular intervals. Helps the trainee gain experience in different aspects of the organisation.

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Off The Job Methods

These methods involve training employees away from their actual workstations. It allows employees to focus entirely on learning without the distractions of the job.

1. Classroom Lectures/Conferences: Suitable for conveying specific information, rules, procedures, or methods. Uses lectures, discussions, audio-visual aids.

2. Film/Videos: Used to demonstrate skills, procedures, or explain concepts visually.

3. Case Study: Trainees analyse real or hypothetical business situations, identify problems, and suggest solutions. Develops analytical and problem-solving skills.

4. Laboratory Training: Trainees learn interpersonal skills in a simulated environment (e.g., role-playing, sensitivity training).

5. Vestibule Training: Creating a simulated work environment similar to the actual workplace, but away from it. Trainees use the same equipment and machinery they would use on the job. Suitable for training for skilled jobs (e.g., operating complex machinery).

6. Programmed Instruction: Using specifically designed textual or computerised materials that allow trainees to learn at their own pace with immediate feedback.

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