CBSE Class 12 Business Studies Revision Notes Chapter 6 - Staffing

Summary: Concept and importance of staffing Staffing as a part of Human Resource Management Recruitment: Meaning and sources Selection process Training & Development: Importance of training, methods of training, difference between training and development.

Meaning: Staffing refers to filling and keeping filled posts with people.

Staffing vs Human Resource Management:

Human Resource Management is a wider term than staffing. Human Resource Management includes following activities: 

• Recruitment 

• Providing expert services like job evaluation, performance appraisal

• Developing compensation and incentive plans 

• Handling grievances and complaints 

• Keeping personnel records

• Defending company in lawsuits 

Importance of Staffing 

Staffing helps in 

1. Discovering and obtaining competent personnel. 

2. Improving performance of employees. This is because through staffing, right people are posted at right places.

3. Continuous survival and growth of organisation. This is because the right people are posted at right places and they are given training to increase their skills.

4. Optimum utilisation of human resources. Under staffing, all activities related to human resource are performed systematically. 

5. Improving job satisfaction and morale of employees. Under staffing, promotion policy, training and remuneration plans are designed as per the employees.

Staffing Process

The staffing process involves the following steps:

1. Estimating Manpower Requirements: This step is concerned with determining the number and type of employees required for the organization.

2. Recruitment: It refers to attracting suitable people to apply for vacant jobs in the organization.

3. Selection: Selection is a process of choosing the best person out of the various candidates for the job.

4. Placement and Orientation: Placement refers to giving charge of the job to the selected employee. Orientation / Induction refers to introducing the new employee with existing employees and with the policies of the organisation.

5. Training and Development: Required training helps in increasing skills and knowledge of the employees in doing their jobs.

6. Performance Appraisal: Performance appraisal means evaluating the performance of an employee against certain predetermined standards.

7. Promotion and career planning: Employees must be given opportunities to grow and realise their full potential.

8. Compensation: Compensation refers to all forms of pay or rewards given to the employees.

Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in an organization.

Sources of Recruitment 

• Internal Sources 

• External Sources

Internal sources of recruitment are as follows:

1. Transfer - It means shifting of employees from one job to another or from one department to another without much change in pay and responsibilities of the employees.
2. Promotion - It involves shifting of an employee to a higher position with additional pay, status and responsibilities.

Merits of Internal Sources:

1. Employee motivation - It increases job satisfaction of the employees and they are motivated to improve their performance. They become more loyal and committed to the organisation.

2. Reliable- It is a more reliable source because employees are already known to the organisation.

3. Less costly- It is a cheaper source as compared to external source.

4. No need for induction training- Candidates recruited through this source do not need induction training.

Demerits of Internal Sources:

1. Lethargic - Employees may become lethargic/lazy if they are sure of time bound promotions.

2. Lack of competitive spirit- It may hamper the spirit of competition among the employees.

3. Unsuitable for new organisations- A new organisation cannot use this source.

4. Reduction in productivity- Frequent transfers may reduce the productivity of employees.

5. Restricts new talent - It stops infusion of new blood in the organisation and the firm is not able to explore fresh talent.

External Sources of recruitment are as follows:

• Direct Recruitment: Under direct recruitment, a notice is placed on the notice board of the organisation specifying the details of the job available. This source is used for unskilled and semi-skilled jobs.  It is suitable when there is absenteeism of permanent workers.
• Casual Callers: In many organisations some people continue sending their bio data from time to time with the hope of getting called in case of job vacancy. A waiting list of such people is prepared and as and when a vacancy arises, these people can be called.
• Advertisements: Advertisements are made in newspapers, journals, magazines, television etc. The advertisement gives information about the number of vacant posts, required qualifications, remuneration etc. It is an effective source when wider choice of candidates is required.
• Employment Exchanges: Employment exchanges are run by government. It serves as link between job seekers and employers. The problem with this source is that records of such exchanges are usually not updated.
• Placement Agencies: These agencies are established by private individuals. People can get their names registered with them. On the request of an organisation, these agencies do the whole-time job of recruitment on behalf of the organization. In return, they get fees.
• Recommendations: Sometimes, organisations recruit people on the recommendation of their existing employees. This is a reliable source and is useful to encourage the present employees.
• Campus Recruitment: It is a joint programme of educational institutions and business organisations. It is a popular source of recruitment for technical, professional and managerial jobs.
• Labour Contractors: Labour contractors are a link between labourers and managers. They are able to provide a required number of unskilled workers within a short period of time as they maintain close contact with labourers.
• Web Publishing: Special websites are created for the purpose of recruitment through internet. For example www.naukri.com, www.indeed.com, www.monster.com etc.
• Advertising on television: It involves telecasting of vacant posts on television. The television advertisements contain detailed requirements off the job and qualifications required for the job.

Merits of external sources: 

1. Wider choice - Management has a wider choice while selecting employees.

2. Promotes competitive spirit - Existing employees will have to face competition from outsiders. As a result, they will be forced to work hard.

3. Qualified personnel -Qualified and trained people can be attracted through this source.

4. Fresh talent - It provides fresh talent and new blood is infused in the organisation. 

Demerits of External Sources:

1. Dissatisfaction among existing employees- It may lead to dissatisfaction among the existing employees as they make feel that their chances of promotion are reduced.

2. Time consuming- It is time consuming.

3. Costly- It is a costly source. A lot of money is spent on advertisements and processing the advertisements.

Selection

Selection refers to the process of choosing the best person out of various candidates for the job.

Selection Process:

The selection process involves following steps:

1. Preliminary screening: In this step, unsuitable candidates are rejected on the basis of information supplied by them in their forms.

2. Selection Tests: Selection tests are used to measure abilities and skills of the candidates.

3. Interview: Interview involves formal face to face conversation between the interviewer and the candidate. The purpose is to check various aspects of the candidate's personality like his way of talking, conduct, presence of mind, interests, opinions etc.

4. Reference and Background Check: After interview, some further information about him is gathered from those persons whose names are written in the column of references. This is helpful in verifying the information given by candidate and to know about his character, social relations and background. 

5. Selections Decision: Candidates who clear selection Tests, interview and background checks are selected. 

6. Medical Examination: Medical examination is conducted to check if the candidate is physically fit for the job or not.

7. Job Offer: After clearing medical examination, job offer is given to the selected candidates.

8. Contract of Employment: A written contract of employment is framed in which important information is provided such as job title, responsibilities, pay, working hours, leave rules, termination procedure etc.

Types of selection tests:

1. Intelligent test - This test is conducted to measure the level of intelligence of a person and his or her ability to make decisions and judgements. 

2. Aptitude test - This test is conducted to measure potential of a person to learn new skills. 

3. Personality test - This test is conducted to measure a person's overall personality. His or her emotions, reactions, maturity and values. 

4. Trade test - This test is conducted to measure existing skills of a person.

5. Interest test – These tests are conducted to know the pattern of interests of a person.

Training: 

Training refers to the process of increasing knowledge and skills to perform a specific job. 

Difference between training and development: 

Benefits of Training:

Benefits of Training to Organisation:

1. Training helps in reducing wastage of money and efforts.
2. Training helps in increasing employee productivity leading to higher profits.
3. Training increases employee morale leading to lower absenteeism and employee turnover.
4. Training helps the employees in adapting to changing environment and new technology.

Benefits of Training to Employees:

1. Training increases knowledge and skills of an employee leading to better career opportunities.
2. Training helps in improving performance of employees leading to higher earnings for them.
3. Training reduces the chances of accidents because employees become efficient to handle machines.
4. Trainings helps in increasing morale and job satisfaction of employees.

Methods of Training: 

On the Job Training Methods

1. Apprenticeship Training: Under apprenticeship training, trainee is put under the guidance of a master trainer. The trainee learns by observing the master. This method is used to acquire higher level of skills. Generally, electricians, plumbers and iron workers are required to undergo this type of training. 

2. Internship Training: Under internship training, technical institutes and business organisations join together to provide training to their students. The objective of this method is to link theoretical knowledge with practical skills.

Off the Job Training Method

1. Vestibule Training: Under this method, a separate training centre is set up away from the actual work place. But similar equipments, files and materials are used. This method is suitable when machines and equipments are sophisticated.