CHAPTER FIVE: STATFING FUNCTION

Learning objectives
At the end of this part, students should be able to:
 Define staffing as part of the overall management process
 Recognize the staffing process
 Explain what human resource planning is
 Know the importance of manpower inventor(auditing) in human resource planning
 Define recruitment as one part in staffing process
 Understand concepts like, selection, orientation and induction, Training and
development, performance appraisal, transfer and separation in staffing process.
5.1. INTRODUCTION
After jobs are identified, grouped & organizational structure is created, then comes the other
managerial task staffing.
Organizations possess and utilize different kinds of resources to achieve their objectives.
These resources can be; materials, capital, machineries, money information and men. Among
these resources human resources is the most important one. It is impossible for organizations
to accomplish their objectives and utilize other resources. Without HR other resources
remain futile and organizations are said to be lifeless without HR. Human resources have the
ability to develop and improve their abilities and skills. As Robert Owen said human
resources are the most important resources of an organization, which deserve special
treatment, respect and dignity
The managerial function of staffing is defined as filling and keeping filled position in the
organization structure through identifying work force requirement, inventorying the people
available, recruiting, selection, Placing, promoting, appraising, compensating, training and
developing both candidate and comment job holders to accomplish their tasks effectively and
efficiently.

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6.2. Staffing Processes
Staffing process incorporates the different series of activities/steps that one should follow
during staffing function.
The staffing process
Staffing involves a series of steps. They are
1. HR planning (manpower planning)
2. Recruitment and selection
3. Placement & Employment decision
4. Induction & Orientation (Socialization)
5. Training and development
6. Compensation & performance appraisal (PA)
7. Separation, Promotion, Transfer & Layoffs
1. Human Resource planning/Man power planning
It is the process by which management determines how an organization should move from its
current manpower position to its desired manpower position. One can also define human
resource planning as the process of determining the need of the provision of adequate human
resources to the job in the organization. It is designed to ensure that the personnel need of the
organization will be constantly and appropriately met. Through planning management strives
to have the right number and the right kind of people at the right place, at the right time, to do
things which would result in achievement of maximum long term benefit for both the
individual and the organization. It is accomplished through analysis of:
 Internal factors such as current and expected skill needs, vacancies, and departmental
expansions and reductions.
 External environmental factors such as the labor market, the government regulation,
the labor union etc.
As a result of this analysis, plans are developed for executing the other steps in the starting
process. This helps an organization to determine the need of employees for short term or for
long term. The activities generally seen in human resource planning are,
 Forecasting about the future manpower requirements.
 Making an inventory of the present manpower and also finding out to what extent they
are effectively deployed.

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 Anticipating future manpower problems by comparing the forecasted requirements with
that of the current manpower assessments.
 Planning the necessary programs and procedures to overcome the problems identified.
The planning can be done for programs concerning, requirements, recruitment, selection,
training, development, promotions, companions etc.
Why human resource planning is needed?
 To carry out the work of the organization, skilled and qualified work force is needed.
A good human resource plan would help the management in recruiting and selecting
the best available personnel to carry out the activities of the organization effectively
and efficiently.
 People leave organizations for a number of reasons like retirement, transfer, better
opportunities in other organizations and it is the duty of the human resource
department to replace them.
 A good human Resource plan would go a long way in trying to predict when the
vacancies would be created and when the recruitment and selection should be carved
out.
 Labor turn over and absenteeism seem among workers are also factors which make
human resource planning important.
 In order to meet the requirements of expansions and diversification programs of the
organization human resource is important.
 The present situation of fast-paced change in technology and changing needs of the
work force has also necessitated creation of an effective human resource plan to cope
up with future uncertainties.
 Human resource planning will help the management in identifying the areas where
there are surplus personnel. These surplus personnel can be transferred to other
departments or can be assigned some other duties.
Model of human resource Planning
Basically, a human resource plan consists of the following five phases or steps.
 Determining future human resource requirement
 Determine future human resource availability
 Conducting external and internal environmental scanning

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  The Concealing requirements and availabilities
 Action planning
After developing the model of human resource planning the manager will try to audit the
human content of the organization to decide on the quality and quantity of workers that might
stay with the Organization for the future plan. Following the human resource audit the
manager is also responsible to conduct job analysis to determine the vacant position available
in the organization.
2. Recruitment and selection
Recruitment
This is the second stage in procurement process of any personnel department, the first being
human resource planning. The recruitment process acts as a bridge between the prospective
employees and the organization. Recruiting is the discovering of potential applicants for
actual or anticipated organizational vacancies. Hence, the main/ purpose of recruitment is to
identify sources of manpower so as to satisfy the man power requirement of the organization.
It can be considered as the most important function of the personnel department. Unless and
until the organization attracts the best and the brightest professionals it would not succeed.
Even the best personnel policies, the best devised plans and the latest technology cannot be
harnessed properly if the manpower is of low quality. The process of recruitment is
considered to be both positive as well as negative. Positive because, stimulates people to
apply for the vacancies created in the organization and negative because, it screens out or
rejects the majority of applicants who do not match the broad job requirements. So, during
recruitment the potential candidates will be pooled together through the advertisement of
vacancies on mass media. The vacancy to be announced to the candidates should incorporate
at least the two statements.
1. The job description statements and
2. The job specification statement
Job description- is the written record of duties, responsibilities and requirements of a
particular job. It gives information of about the title, locations, duties, working conditions
and hazards. It is the description of job quality characteristics.
Job Specification -It is a statement giving the requirements of personnel who should be
made responsible for a given job. It gives information regarding the characteristics, qualities

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(physical, psychological and demographic), qualifications, experience, etc, of the worker
who is most suitable to carry out the activities mentioned in the job description. So it is a
statement specifying the characteristics of the worker occupying the position.
Sources of Recruitment
Sources of supply are the places, agencies, and institutions to which recruiters go and seek
potential candidates that will fill the vacant positions or the job needed. The sources of
supply are generally categorized in to two, internal and external.
1. Internal Recruitment (Recruitment from within)
This involves recruitment from within the organization; it could be through promotion,
demotion or lateral transfer. The employees who already are a part of the organization are
given an opportunity for filling up vacant positions. Here, not only the existing employees
but also ex employees of the organization who left the organization for various reasons
belong to the internal source of recruitment.
The advantages of these sources are:-
 Employees have high moral because they are sure of getting relations for the hard
work they put in to the organization growth.
 The old employees can be better evaluated than out sides
 Since the organization gives preference to existing employees in filling up vacancies,
ob security is more and also the opportunity for advancement is higher which
enhances employee loyalty towards the organization.
 Minimum time needs to be spent on training since the employees are already used to
the organization policies, procedures and philosophy.
 Employees selected from the internal sources are generally more reliable because
they have more loyalty to the organization than a new comer.
 Recruiting from the internal sources is much cheaper than the external source.
The disadvantages are:
 Too much dependence on the internal sources will lead to inbreeding and discourages
people with fresh ideas, more qualification and more creativity room entering the
organization
2. External source of Recruitment

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Here the potential candidates are totally coming from the external environment i.e. Out side
the organizations and generally these sources are new entrants or fresh products, the
educated, but unemployed section of the society, employees of other organizations, retired
persons, etc.
The advantages of external sources are:
 The management need not compromise in their recruitment; they can get the best
professionals available in the market with the required experience, skill, education
etc.
 Recruitment can be done which might include all sections of the society
 Fresh blood can be pumped in to the organization personnel who are creative and who
are specialists can be attracted.
The disadvantages can be:
 Adequate time and money needs to be . spent on training and induction
 Chances of brain drain or the employees being recruited by other organizations
increase
 The whole process of external recruitment is more expensive than internal
Methods of Recruitment
Direct Method Recruitment:- The recruiters are sent directly to the colleges, universities,
educational institutions, and contact the graduating students and select the best among them.
The recruiters also contact the prospective employees directly, the recruiters may hold
conference and seminars for the prospective employees and encourage them to apply for
vacancies, and the recruiters may participate in job exhibitions or job fairs to attract
prospective employees.
Indirect Method: - In this method the organization encourage prospective employees to
apply for vacancies through advertisements in newspapers, magazines, journal etc. Generally
the advertisements for top-level position are given in national newspapers and for lower level
and workers advertisements are given in regional newspapers. The advertisements could be
detailed (name of the organization, type of the job, salary and other benefits etc)or bind (only
the type of job and p.o.box number).
Third Party Method: - There are many private employment agencies which carry out the
recruitment process of an organization for a fee. Governments also have employment

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exchange which provide organizations with man power. Placement services of colleges and
universities, trade unions etc, are also part of the third party method of recruitment.
Selection
Selection is the procedure, which is concerned with securing and extracting relevant
information about an applicant. The objective of the selection process is to help the
organization in determining whether the applicant has the required qualifications for a
specific job or position and in hiring the best candidate among all the applicants.
Selection process
To select the best workers who best fit to the position from the potential candidates, there are
various stages that one should follow. There are:-
1. Application blank:- The applicants are made to fill up a predesigned application
form which tries to extract detailed information about the applicant’s personal
information (name, age, sex, family background etc) educational qualifications,
training programs, undergone, work experience, salary expected, future career plans,
self assessment of previous work, reasons for leaving the current or previous
employer etc, or the applicant is asked to submit his/her bio-data instead of filling up
the form. This information is used by the interviewer at the time of final interview
and is filled in the employee record if the applicant is selected.
2. Preliminary interview: - This is generally done by a junior executive of the human
resource department where in the general information about the company and the
job/po0sition is given and brief information about the applicants, educational and
professional qualifications and obtained. Observation is also made of the general
physical feature and physical fitness of the applicant.
3. Final Interview: - Interview is the most widely used selection tool. It is a complex
process in which the interviewer tries to form an opinion about the interviewee’s
personality, intelligence, technical competence, interests, attitudes etc. through face-
to-face interaction. It is an attempt to secure maximum amount of information from
the candidate concerning his/her suitability for the job under consideration. This
technique can also be used for purposes other than selection like, in performance
appraisal, in grievance handling, in disciplinary action, for counseling and other
general problem solving.

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The basic objectives of interviews would be as under
 To properly judge an applicant’s qualifications and characteristics
 To give the applicant important and relevant information about the job and the
organization
 To establish a good rapport with all the candidates attending the interview
 To promote the good will of an applicant towards the organization, immaterial of the
out come to the selection process
 To help the management in grievance handling in conduction of disciplinary actions
and in interactions with the workers union
 To observe the applicants, appearance personality, confidence level etc.
 To solve the problems arising out of the various interactions seen inside the
organization

Physical examination
It is checking the physical fitness of the candidates
Medical examination of the candidate before employment is a necessary step in the selection
process. To prevent the existing employees from the communicable diseases & unwarranted
claims in the form of medical & insurance expenses
Also needed to identify the disabilities/ handicaps the candidates have so as to help the
management in allocation of the jobs.
This step is necessary for 3 vital reasons: to assure that the applicant is fit to work in the
organization, to assure that the candidate is physically fit for placement in a particular job, to
provide base against which later physical examination may be compared. (- is important in
the disability claims that may occur during the job assignments).
Reference letters/ Reference check & background investigation
Verification of information obtained from the candidates application form & selection
interview. After a candidate has passed successfully all the above stages in the process of
selection, a reference check is made where in the HR manager gets in touch with the current
or previous employer of the candidate and find out relevant details. This is done to see
whether the candidate has furnished correct details & also to cross check the suitability of the
candidate for the given position. Include: letter of recommendation; references; testimonials,

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etc… from the former employers so that it is possible to know the competence of the
candidates.
Final selection & Communication (Job offering)
After getting a positive reference, a final list of selected candidates is made & this
information is passed on to the candidates, the concerned line managers & other people.
3. Decision Making and Placement
The candidates who have been selected should be given placement letters that state their
employment and specific positions, and other employment related matters.
4. Induction & Orientation (Socialization)
When the candidate is selected and offered a job, it is necessary to introduce the new
employee to the organizations philosophy, rules, policies, etc…..then the new employee
begins his work. He should be assimilated to the job & organizational environment.
Induction & orientation have to do with familiarizing the new employee with the
organization. They can be done by oral communication and physical observation, written
media like manuals, guidelines and others.
The employee will be given information on the organizations history, products, operations,
policies & rules, services available, opportunities & other issues.
Induction & orientation are the two important tasks to be accomplished to ensure smooth
organizational membership of a new employee. They are assimilation & socialization of a
new employee.
Induction- Refers to the process of familiarizing a new employee with the overall
organizational environment through the provision of adequate information to bring about
change in new employee’s expectation, behavior, and attitude in order to assure the best
match with organizational interest. It involves providing information about the organization’s
history, purpose, operations, products/services and his contribution to the organization and
needs & benefits for the new entry. It is done through the interaction of the employee, the
immediate supervisors & personnel.
Orientation-It is designed to enable new employee to familiarize with working environment
through the provision of adequate information. It involves discussion between a manager &
employee regarding the job assignment including specific location, rules and procedures of
the work as well as the materials, equipments needed to do the job.

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The purposes of induction & orientation
 Reduce the start-up cost - enable a new employee to meet performance standards
sooner.
 Reduce anxiety - employee fear of failure on the job can be avoided, and he develops
self confidence.
 Decrease turn over - provision of all kinds of information during the entry time make
new employee stable in the organization.
 Save time to supervision - reduce the time of a supervisor to supervise and observe
the performance of an employee.
5. Training and Development
Having qualified and well trained personnel, to perform various jobs is a very basic necessity
for any organization. Training becomes necessary because of changing technology, up
production of skills and knowledge of the workers, the need to increase the productivity of
the workers etc, so as to retain the competitive edge. Training and development seem to
indicate the same meaning but a detailed examination would real some differences. Training
is a process of leaving a sequence of programmed behavior, which help the trainees in
improving their job performance and better apply their knowledge where as development
covers not only performance improvement activities but also those, which enhance
personality, gain better attitudes, values and behavior.
The scope of development is wider than training. To understand the difference between
training and development more clearly we need to look at their impact on the learning
dimensions.
Training
Training becomes necessary because of the changing technology, up-production of skills &
knowledge of workers, the need to increase the productivity of the workers, etc.
Training is any process by which the aptitudes, skills and abilities of employees to perform
specific jobs are increased. It is the act of increasing the knowledge & skills of employee for
doing a particular job; and a process of learning a sequence of programmed behavior which
help the trainees in improving their job performance and better apply their knowledge.

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Training is designed to improve a person’s skills to do the current job at high level from the
first day they start working. To ensure improvement in person’s skills & knowledge to
perform the work through training, effective training system should be designed.
Objectives of Training
 To make the workers perfect in their work
 Proper training would help the worker in producing quality product
 Training will help the management in developing personnel for future expansion or
diversifications
 A good and well-planed training program will help in improved performance
 Proper training will help the worker in adopting safe work procedures
 Proper training will help the worker in adopting safe work procedures
 Training will help the worker in avoiding them from being obsolete

Importance of training
It is important that the employee be indicated into training programs to improve their
knowledge, skills and future performance. The need for proper training is increased by the
following considerations.
 Increased productivity
 Improvement in employee morale
 Availability for the future personnel needs of the organization
 Improvement in health and safety
 Reduced supervision
 Personal growth
 Organizational stability
Steps in designing effective training
1. Need assessment-assess the needs for training based an organizational analysis,
person analysis & task analysis.
2. Assessment of employee readiness-Consider whether employees are motivated to
learn.
3. Creation of learning environment -Lay a foundation for successful training by
creating the conditions under which employee will learn best.

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 4. Ensuring transfer of training -Ensure that employee will be able to apply what they
have learned to their jobs.
5. Selection of training methods-Consider the possible training methods & select those
that will be most appropriate.
6. Evaluation of the training program-Evaluate the outcome of the training program.
Methods of training
Organizations can use training methods that they believe appropriate to satisfy their training
needs & accomplish objectives. The commonly used training methods are classified into:
 On-the- job training
 Off- the-job training
 Vestibule/ Simulated training

On-the-job-training:- In this type of training, an employee is put on the work floor directly
and is assigned to a superior to an experienced co-worker who teaches/guides him in how to
do the work practically. These methods are parts of the every day job activity of the
organization. This is the most common method of training, because it is practical it is
practical oriented, less expensive and the focus is on the job. The various techniques used
under this method are, coaching (understudy) apprenticeship, where the super visor or an
experienced worker gives personal and in-depth guidance to an employee or subordinate.
Off the job-training- This type of training is given to the trainees away from the work floor
and is not the every day activity of the organization. The trainees are imparted theoretical
knowledge in a classroom or a training center and the most popular kind of off the-job
training methods are lectures, conferences, group discussions, case studied, role-play,
programmed instructions, etc.
Vestibule/Simulated training: - This is a combination of on the job training methods. In this
method identical machines and equipment, which are used on the work floor, are installed in
a training center and also an effort id made to implicate work atmosphere found on the actual
work floor. This method tries to give the trainees a chance of getting trained in a situation
that is as close to the original work situation as possible. Here the work environment is
almost similar to the actual environment, but is not the rest environment. Eg. Training given
for a pilot.
6. Performance Appraisal and Compensation

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Performance appraisal is a process of evaluating an employee’s performance of the job
assigned. Performance appraisal is a step which tells the management how effective their
processes of recruitment, selection, and training are. It basically involves the estimation of
the value, excellence and quality of the personnel of the organization. Performance appraisal
is also called as merit ratings, employee evaluation, progress report, staff assessment etc.
Objectives of performance Appraisal
 It helps the management in maintaining the inventory of man power along with their
quality and worth for the organization
 A good performance appraisal helps the management in identifying and meeting the
training need of the employee
 It helps the management in deciding about salary increments, incentives and in
deciding who should get promotions, transfers and demotions.
Performance Appraisal Process
The steps to be followed during the evaluation of workers performance are:-
 Establishing performance standards:- performance standards are developed at the
time of developing job descriptions and job specifications. These standard should be
clear, precise, and objective oriented.
 Communication of standards to employees:- Performance standards should be
fcommunicated to all the concerned employees, because unless and until the
employees are aware of the standards, they will not be in a position to meet them.
 Measurement of the actual performance:- In this third stage the actual performance
of the employees is noted and the information about the employees performance is
collected through personal observation, written report, oral report etc.
 Comparison of the actual performance with that of the standard:- An objective
and impartial comparison of the actual performance with the standard perfomance is
carried out short falls, if any of the employees are identified and deviations, if any,
are noted down. This comparison is also used to identify the most promising
employees who have the potential for growth and =advancement.
 Communication of the results: - These results are communicated to the concerned
employees and discussions are held with them to identify their strengths and
weaknesses and also to identify the difficulties in carrying out their activities.

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 Objective discussions and accurate information about the performance will help the
employee in bettering his performance.
 Corrective actions: - If there are any short falls in the performance of the employees
the management along with the concerned employees should identify the reasons of
the short falls. After the reasons are properly identified, the ways and means of
overcoming these difficulties are devised and implemented.
Compensation
People work in organizations for the sole purpose of earning enough money to live
comfortably and satisfy alls their needs. Wage and salary administration is the establishment
and implementation of sound policies and practices of employee compensation.
Compensation is just the reward for the work done by an employee and it should be balanced
so as to keep the parties, the employer and the employee happy and satisfied. Compensation
includes the money paid as reimbursement.
Factors affecting compensation policies of the organization
 Organizational ability to Pay:- The organization should have enough funds to pay
enough salary or wage to the employee.
 Supply and demand of labor:- If the supply of labor is more than the requirement
then the management can pay less wages and salaries to its employee and reverse in
case of less supply
 Prevailing market rate: - The going wage rate or salary in the industry also
influences the wage and salary policy of the organization. An organization cannot
give less salary/wage than the average salary of the industry.
 Cost of living:- The cost of living differs in different cities
 Productivity: - The level of productivity of the workers also has an impact on the
kind of wage/salaries they get; more productive workers get more salaries.
 Bargaining Power of the worker’s unions:- Powerful worker’s union generally
have a lot of influence on kinds of wages and salaries given by the organization
 Job requirement: - Some jobs are more hazardous and dangerous than others and the
employees understating them would get more pay than others who are in relatively
safer positions.

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  Managerial attitude: - The top management has a lot of influence on the wage and
salary administration because they can choose whether to pay the industry average
salary, above or below the average salary, the kind of working conditions to be
provided to the employees, the length of work hour etc.
Types of incentives
Intrinsic rewards: - These are rewards which a worker receives for himself and are totally
dependent on the kind of work done by him. These individual incentives could be in the form
of participation in decision-making , job freedom, more responsibility, more interesting work
assignment, opportunity for personal growth etc.
Extrinsic rewards: - These incentives are meant for all the employees of the organization
and they can be follows.
 Direct compensation: - These incentives are given to all employees of the
organization and basically are monetary in nature and the payment is made
immediately like salaries or wages paid to the employees , over time earning’s,
holding premiums, performance bonus, profit-sharing, stock options etc.
 Indirect Compensation:-These incentives are realized at a later period of time,
generally once in a year or at the time of retirement like group insurance schemes,
contribution for provident fund services etc.
The time and mode to payment
There are two basic methods of payment:
 payment by time and
 payment by output
The relative advantages of each of the two basic methods of payment; by time or by output
are summarized in terms of the circumstances or situations under which each is preferable:-
1. Payment on a time basis is more satisfactory when
 Units of output are not distinguishable and measurable
 Employees have little control over the quantity of output or there is no clear-cut
relation between effort and output, as on some machine-paced jobs.
 Work delays are frequent and beyond employees’ control
 Supervision is good, and supervisors know that constituter’s a fair day’s work
2. Payment on the basis of output is more satisfactory when:-

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  Units of output are measurable
 A clear relation exists between employee effort and quantity of out put
 The job is standardized, the flow of work is regular, and break downs are few or if
many consistent
 Quality considerations are somewhat less important than quantity of out put
 Supervision is unsatisfactory, or supervisors cannot devote enough attention to
individual performance
 Competitive conditions and lost control make it imperative that labor costs per unit be
definite and fixed in advance, as in the shoe and clothing industries
7. Separation, Promotions, Transfers and Layoffs
Separation
Separation refers to the discontinuation of the relation between employee & the employer. It
is the final HRM function. Like other functions it requires preparation & planning.
Separation can be initiated by
 the employers like - mandatory retirement; dismissal; layoff
 the employees like - resignation; voluntary retirement; quit
 the agreement - when the contract ends; or they can also be caused by things outside
the will of both the employer & the employee (accidents, death)
Causes for separation
Causes for separation of employee from the organization mainly are retirement; layoff;
dismissal; permanent; disability; resignation; quit; outplacement; …
Promotion
Promotion is the advancement of an employee to a better job. Characteristics of ' better job'
to which an employee seeks promotion are greater responsibilities, more prestige or status,
greater skill, and specially increased rate of pay or salary, better hours or better locations or
working conditions. If the job doesn’t involve greater skill or responsibilities & high pay, it
should not be considered as promotion. Upgrading refers to a practice related to promotion,
but it amounts to a small scale advance in status. It is the movement of an employee to a
more responsible job within the same occupational unit and with a corresponding increase in
pay. Both upgrading & promotion are ways of recognizing & developing the abilities of

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employees within the organization instead of filling skilled and responsible positions from
outside. They should be distinguished from transfer.
Transfer
Transfer is the movement of an employee from one job to another on the same occupational
level of wage/ salary. No appreciable increase or decrease in duties and responsibilities
involved but there may be a change in their specific nature and in working conditions. Some
transfers entail a decrease in job duties and especially in pay, and called downgrading or
bumping. It is more frequently used to protect employment opportunities for employees
displaced from higher rated jobs. It is moving to less desirable jobs.
Layoff
Layoff occurs when there is lack of business or budget curtailment/ shortage. It is forced
reduction of the number of employees. It is the most frequent type of separation of
employees from the employed workforce.
Layoff is unlike quits, retirements or deaths, it doesn’t necessarily involve a permanent
separation from the payroll. Laid-off employees normally expect to be rehired by their
employer when conditions improve.
Quits-Quit refers to the voluntary movement of the worker from the organization such as
health problem resignation.

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