BUSINESS STUDIES NOTES -BY BODMAS CAREER ACADEMY- staffing -chapter 6

Staffing

The managerial function of staffing is concerned with the management of    human resources in an organisation,The staffing function in an organisation is closely related to and dependent on its organizational structure, which in turn is dependent on the organizational goals. Hence, the efficiency of the staffing function can be evaluated by the extent to which the organisation goals are achieved. Managers at all levels are responsible for staffing. The board of directors undertake staffing for selecting other top-level managers, who in turn have staffing responsibilities for middle-level staff, and even the lower-level supervisors have to assume staffing activities for appointment of workers. Staffing involves filling in of job position not only for the present but future also. In small organisations, the responsibility for staffing rests with the line managers. In large organisations, staffing is handled by the human resource department, which works closely with the line managers.

Meaning of staffing Staffing involves procurement, maintenance, training and development of personnel to meet the current and future needs of a business organisation. It is a continuous process in an organisation.

Importance of staffing Staffing is the key to other managerial functions, as the effectiveness of other functions like planning, organizing and directing depends upon the competence of the personnel in an organisation.

• Staffing helps in building a sound organisation, as it is concerned with   regular selection, appraisal and development of personnel to facilitate organizational growth.
• Effective staffing helps  to  reduce  the cost of human  resource  in  an  organisation.
• Staffing helps to adopt a holistic approach to functioning of people in an organisation.
• Staffing is essential to fill in the roles designed in the organizational structure. 
• Staffing ensures that suitable people are hired for the organisation, as the quality of people procured affects   the training and development programmes.
• Staffing helps to adopt a focused approach and use new techniques and methods.

Process of Staffing

• Manpower planning in both qualitative and quantitative terms is the first step in    staffing.
• Job analysis involves systematic collection, analysis and interpretation of information related to various aspects of a specific job. It helps manpower planning.
•  The next step is recruitment, which is the process of searching for prospective employees and stimulating them to apply for a job in the organisation. 

• After recruitment, selection activities are undertaken to choose the most suitable person for the job.
• After selection, the selected candidates are placed on the job according to their work proficiency.
• At times, training is given to employees to increase their knowledge and skill for a particular job.
•  After placement, induction or orientation training is carried out, which is 
• concerned with introducing the new employees to the organisation and its     procedures, rules and regulations.
• Next step is performance appraisal which is undertaken to evaluate the worth of an employee to an organisation. It facilitates training and development programme.
• On the basis of performance appraisal reports promotion or demotion decisions are taken and career planning of an employee is done.
• In order to obtain, retain and motivate employees it is important that the salary and wages paid to them are fair and competitive.
• Staffing process also involves making necessary provisions for events like resignation, retirement, death or retrenchment of employees.

Meaning of recruitment: Recruitment is the process of searching for prospective employees and stimulating them to apply for a job in the organisation.

• Internal sources of recruitment are promotion, transfer and layoff.
• External sources of   recruitment   are   advertising   sources,   employee’s recommendation, employment agencies, campus, visits, casual or factory gate, waiting list, personnel consultants, and contractors.

Meaning of selection Selection is the process of carefully screening the candidates who offer themselves for appointment so as to choose the most suitable person for the job.

Steps involved in selection

• First, the scrutiny of applications is done to shortlist the candidates who apparently fulfill minimum requirements of the job.
•  Large organisations prefer to conduct a screening interview to ascertain whether the candidate fulfills the minimum requirements of a job.
•  The filling of an application blank by a candidate is the third step in selection process.
• The fourth step in selection process relates to selection tests, which are conducted by organizations to measure the capability and competence of the candidates for job suitability.
• After a candidate has cleared the selection test he or she is called for an interview to assess his/her suitability for the job.
• If candidate is found suitable for a job, the organisation may contact his former employer and professional acquaintances to validate the candidate’s character, reputation, etc., for reference checking.
• Before a candidate is appointed he has to undergo a simple medical examination.
•  The selection procedure comes to an end with the issue of an appointment letter to the selected candidate.

Types of selection tests

• Trade test is used for determining the candidate’s level of knowledge and skill about a particular job.
• Performance test involves assessing the prospective candidate’s competence by making him perform a specific job.
• Psychological tests help to measure the candidate’s emotional quotient,   intelligence outlook, interest, etc.

Meaning of training   Training is the process of increasing the knowledge and competence of a worker for doing a particular job.

Need for training

• Training is an integral part of management process and is necessary at all levels within organizations of various types and sizes.
•  Training of new employees is essential to make them ‘job fit’.
•  Training helps to improve the quality and quantity of production as it enhances the employee’s knowledge and skills.
•  Training helps to control cost of production by reducing wastage of resources due to mishandling or use of trial and error method.
•  Training reduces the need for supervision. As a result, the supervisors may widen their span of control and spend more time on non-routine issues of the department.
• With the help of training, the best available methods of performing work can be standardized and taught to all the employees.
• Training helps the employees to develop their skill and competence and prospects within and outside the organisation.
•  Training improves the staff morale and self-esteem as it increases job satisfaction.
•  Training prepares and develops future managers and enables the organisation to depend on internal sources of recruitment for higher job.
• Training is essential to ensure safety of workers and reduce accidents at the workplace.

Meaning of on-the-job training Under this method of training, the workers are trained while they are put on their respective jobs. They may be trained by their immediate superior or by some senior experts. The important techniques used under on-the-job methods are vestibule training, coaching, understudy, apprenticeship training, job rotation, induction and internship.

Meaning of off-the-job training Under this method, the employees are given training at a place away from the workplace by experts. The different types of off-the-training methods are conference, seminar, discussions, case study, role play and sensitivity analysis.

Meaning of development Development means growth of a person in all respects. It has wider scope than training and is career-centered.

Meaning of compensation Compensation payable to employees means and includes all the monetary and non-monetary payments that are made to the workers as a reward of their services. Two methods of compensation are the time-rate wage system and piece-rate wage system. Components of a good remuneration system are salaries and wages, bonus, long-term income, benefits and estate building plans.

Meaning of incentive. The term ‘incentive’ refers to an act or promise that induces an individual to desired behavior.

Forms of incentive

• Monetary incentives are directly or indirectly associated with money, like profit sharing, co-partnership, bonus, suggestion system and commission.
•  Non-monetary incentives are ones which cannot be measured in terms of money, like supervisory   relationships, assignment  of challenging jobs, recognition, well-determined  goals  objectives,   level   of  aspiration   and participation in management and experience of achievement.

Meaning of time-rate system Under this method, wages are determined on the basis of time spent on the job Wage = number of hours worked X rate per hour or, Wage = number of day worked X rate

Meaning of piece rate method Under this method, wages are determined on the basis of output irrespective of time taken. Wage = number of units produced X rate per unit. The two methods of piece-rate plan are straight piece rate and differential piece rate.

Meaning of incentive bonus plans The incentive plans have been designed to encourage workers towards higher productivity. The methods of incentive bonus plans are Halsey plan, Rowan plan and Gantt task.