ATTACHMENTS

Organization and Management (OM)

Activity #: 4.5
Activity Name: Staffing Lesson Discussions Notes

Today you shall learn the fundamentals of staffing with the following topics:
Staffing in the Organization
a. Nature of Staffing
b. Recruitment
c. Selection
d. Training & Development
e. Compensation/ Wages & Performance Evaluation
f. Employee Relations
g. Employee Movements
h. Rewards Systems

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Staffing in the Organization

a. Nature of Staffing

• It may be easy for a business owner to handle a small firm with only a handful
of employees. However, as the business grows, company operations will be
 harder to manage especially key positions are vacant. Staffing or Human
Resource Management (HRM) involves acquiring and developing human
resources that will carry out and perform the various activities of the
organization.
• It includes:
a) Recruiting
b) Selecting
c) Training and Development
d) Compensation/ Wages and Performance Evaluation
e) Employee Relations
f) Employee Movements
g) Reward Systems
• It engages in human resource management and utilizes various tools and
techniques to promote employee loyalty, satisfaction, and personal growth
within the company.
• It is a continuous process. This is due to the never-ending need to find, hire,
and develop talents for the company.
• According to Koontz and O’Donnell, “Staffing involves manning the
organization structure through proper and effective selection appraisal and
development of personal to fill the roles designed into the structure.”
• Staffing is people centered. Success in dealing with people will depend upon
the degree to which they are perceived as making realistic contribution to
the solution of management’s problems. It should be remembered that every
manager is expected to perform this function because he is engaged in
getting things done through and with the help of people. There are various
benefits of proper and efficient staffing. These are as under:

a) Helps in finding efficient worker- Staffing helps in discovering talented and

competent workers and develops them to work more efficiently for
achievement of organizational goals.

b) Helps in increased Productivity – Staffing ensures greater production by

putting right man at the right job. It helps in improved organizational
productivity through proper selection according to requirement

c) Maintains Harmony- Staffing maintains harmony in the organization.

Through proper staffing, individuals are not just recruited and selected but
their performance is regularly appraised and promotions are done.This gives
everyone an equal opportunity for getting better compensation which finally
results in peace and harmony.

d) Helps in morale boosting- Job satisfaction keeps the morale high of the
employees. Through training and development programmers their efficiency
improves and they feel assured of their career advancement

e) Helps in Optimum utilization of human resources- Staffing helps in proper

utilization of the available personnel .Manpower forecasting provides a basis
 for recruitment, transfer and training of employees. Shortage or surplus of
manpower will be revealed by proper manpower planning.

1. Manpower planning- Estimation of manpower requirements in the future is the

first stage in the staffing process. It is known as manpower or human resources
planning. Its purpose is to make right kind of personnel available so that there is
no surplus or shortage of people in any department. To determine the
qualifications needed to meet the requirements of jobs, the organisation first of
all has to analyse the jobs, write the jobs description and prepare job
specifications.
 Factors Affecting Staffing
INTERNAL
ENVIRONMENT EXTERNAL
ENVIRONMENT
Promotion policy
Labor Laws
Future Growth plans of Pressure from Socio-
Organization political group
Technology Used Competition
Support from Top Educational Standards
Management
Image of the Other external factors
Organization

2. Recruitment - Once the requirement of manpower is known, the process of

recruitment starts. It is the process of identifying the sources for prospective
candidates and to stimulate them to apply for the jobs. It is a positive process as
it attracts suitable candidates to apply for available jobs. The process of
recruitment and the cost involved in it depends on the size of the undertaking
and the type of persons to be recruited. The sources of recruitment can be

a) Internal sources (recruitment from within the enterprise)

b) External Sources(recruitment from outside )

Recruitment
3. Selection -The process of selection leads to employment of persons who possess
the ability and qualifications to perform the jobs which have fallen vacant in the
organisation. Selection is frequently described as a negative process as it
eliminates all the candidates those who do not match up to the requirements of
the job offered. As the employees are placed in the jobs for which they are best
suited, they derive maximum job satisfaction reducing the labour turnover and
increasing the overall efficiency of the organization. The candidates have to go
through the whole selection process of an organization i.e. interviews, tests,
medical examination etc.

Recruitment vs. Selection

Hiring Process
Step 2
APPLICATION SEARCH & SELECTION

Step 4
ADAPTATION TO THE
WORKPLACE

Step 1
JOB ANALYSIS Step 3
DECISION MAKING PROCESS
4. Placement- The candidate selected for appointment are to be offered specific
jobs. A personnel should be placed on a position where there is full use of his
strength and capabilities. Proper placement reduces absenteeism and turnover.
5. Induction and Orientation-Induction is the process of familiarizing a new
employee to the new workplace, surroundings, company’s rule and regulations.
Induction programme is generally informal in case of small organization. But in
large organization the orientation or induction is carried on formally so that the
new employee develops a favorable attitude towards the company
6. Training and Development - Training is an organized activity for increasing the
knowledge and skills of people for a definite purpose .Its purpose is to achieve a
change in the behavior of the employees and to enable them to do their jobs
better. The initiative for training usually comes from the management.
Development emphasizes on growth of an individual. It’s a continuous process
Development helps in overall growth of the employee.
7. Compensation- Compensation of employees for their services is an important
responsibility of any organization. Every organization must offer good wages,
pay, salary and other rewards to attract and retain talented employees.
Compensation to workers will vary depending upon the nature of jobs, skills
required, risk involved, nature of work etc.

• Compensation, which includes both pay and benefits, is closely connected

to performance appraisals. Employees who perform better tend to get bigger
pay raises. Several factors affect an employee’s pay:
• Pay structure and internal influences. Wages, salaries, and benefits are based
on skills, experience, and the level of the job. The most important high-level
positions, such as president, chief information officer, and chief financial
officer, are compensated at the highest rates. Likewise, different jobs of equal
importance to the firm are compensated at similar rates. As the level of
management responsibility increases, so does pay.
• Pay level and external influences. In deciding how much to pay workers, the
firm must also be concerned with the salaries paid by competitors. If
competitors are paying higher wages, a firm may lose its best employees. HR
professionals regularly evaluate salaries by geography, job position, and
competitor and market wages.
• There are two basic types of compensation: direct and indirect. Direct pay is
the wage or salary received by the employee; indirect pay consists of various
employee benefits and services. Employees are usually paid directly on the
basis of the amount of time they work, the amount they produce, the type of
work performed, or some combination of skill, time, and output. An hourly
rate of pay or a monthly salary is considered base pay, or an amount of pay
received by the employee regardless of output level. In many jobs, such as
sales and manufacturing, an employee can earn additional pay as a result of
a commission or an incentive pay arrangement.
8. Performance Appraisal- It refers to all the formal procedures used in an
organization to evaluate the employees and their contributions. It also reveals as
to how efficiently the subordinate is performing his job and to know his aptitudes
and other qualities necessary for performing the job assigned to him.
 9. Promotion and Transfers
• Promotion refers to being placed at a higher job position with more salary,
job satisfaction and responsibility. On the basis of feedback report of
employees performance they are given promotion and other opportunities
Transfer means shifting of an employees from one job to another or one
department to other. Transfer may take place due to change in organization
structure or changes in the volume of work.

Employee Movement:
• The most basic employee movement definition encompasses the transfer
of employees from an organization to another. It provides insights about the
health of the company pertaining to employee satisfaction and engagement
levels.
Employee Relations
• The term 'employee relations' refers to a company's efforts to
manage relationships between employers and employees. An organization
with a good employee relations program provides fair and consistent
treatment to all employees so they will be committed to their jobs and loyal to
the company.