CBSE Class 12 Business Studies Staffing Notes Set 02

Meaning
Staffing means putting people to jobs. It begins with human resource planning and includes different other functions like recruitment, selection training, development, promotion and performance appraisal of work force.

Need and Importance of Staffing :-
1. Obtaining Competent personal : Proper staffing helps in discovering and obtaining competent personal for various jobs.
2. Higher performance : Proper staffing ensures higher performance by putting right person on the right job.
3. Continuous growth : Proper staffing ensures continuous survival and growth of the enterprise.
4. Optimum utilisation of human resources :- it prevents under – utilisation of personnel and high labour cost.
5. Improves job satisfaction : It improves job satisfaction and morale of employee.

Process of staffing :

Components of Staffing
(A) Recruitment (B) Selection (C) Training. Thus, Recruitment + Selection + Training = Staffing.

(A) Recruitment : Recruitment may be defined as the process of searching for prospective employee and stimulating them to apply for job in the Organisation.
Sources of Recruitment :- (A) Internal Source (B) External Sources
Internal Sources of Recruitment :- Internal sources refer to inviting candidates from within the Organisation. Following are important sources of internal recruitment.
1. Transfer :- It involves the shifting of an employee from one job of another, from one department to another or from one shift to another shift.
2. Promotions : It refers to shifting an employee to a higher position carrying higher responsibilities, prestige, facilities and pay. 3. Laid off employee : To recall the temporary worker for work is called Lay-off as internal sources of recruitment.

External Sources of Recruitment :-
1. Direct Recruitment :- Under the direct Recruitment a notice is placed on the notice board of the enterprise specifying the details of the job available.
2. Casual callers : Many reputed business org. keep a data base of unsolicited applicants in their office. These list can be use for Recruitment.
3. Advertisement : – Advertisement in newspaper is generally used when a wider choice is required.
4. Employment Exchange : Employment exchange is regarded as a good source of Recruitment.
5. Compus recruitment and labour contractors can be used for the purpose. 

(B) Selection : Selection is the process of choosing from among the candidates from within the org. or from the outside, the most suitable person from the current position or for the future position.

(C) Training: Training is the act of increasing the knowledge and technical skills of an employee for doing a particular job efficiently.

Benefits to the Organisation: –
1. It enhances employee productivity and quality.
2. Training increases employee moral.
3. Employee got new Tech. knowledge.
4. Efficient uses of machine.

Benefits to the Employee: –
1. Improved skills and knowledge of employee
2. Increased performance by the individual help him to earn more.
3. Less accidents.
4. Training increases the satisfaction and morale of employee.

Training Method
(A) On the Job Method: – It refers to the method that are applied to the work place, while the employee is actually working. It means learning while doing.
1. Apprenticeship Programme Training: – A master worker or a trainer is appointed who guides the worker regarding the skill of job.
2. Coaching : In this method, the superior guides and instructs the trainee as a coach.
3. Job Rotation : In this method employee is transfer to other department or other shift.

(B) Off the Job Method : These methods are used away from the work place. It means learning before doing.
1. Class room lectures : The lecture approach is well adapted to convey specific information. The use of audio-visuals can often make a formal classroom.
2. Films : They can provide information to the employee.
3. Case study : Trainee study the cases to determine problems & analyses causes.
4. Computer modelling – Training provide to the employee by the help of computer

Staffing
Once the organisational goals are set up, plans are prepared and organisation is appropriately structured to pave the path for achieving of the set goals.

Meaning:
Staffing is a managerial function of filling and keeping filled, the positions in the organisation structure.

Importance of Staffing :
Obtaining Competent Personnel: Proper staffing helps in discovering and obtaining competent personnel for various jobs.
High Performance: Proper staffing ensures higher performance by putting right person on the right job.
Continuous growth: Proper staffing ensures continuous survival and growth of the enterprise.
Optimum utilization of human resources: It prevents under-utilization of personnel and high labour cost.
Improves job satisfaction: It improves job satisfaction and morale of employee.

STAFFING PROCESS :
The steps in the staffing process is as under.q
- Estimating manpower requirement
- Recruitment
- Selection
- Placement and Orientation
- Training and development
- Performance appraisal
- Promotion
- Compensation

1. Estimating Manpower Requirement
Work load Analysis is done to know about number and types of human resources required for the performance of various jobs.
Work force Analysis is done to know about number and types of human resources available in the organization. This will help to know if organisation is overstaffed or understaffed.

2. RECRUITMENT
Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in the organization. It is a positive process, because pool of candidates is created. Higher the number of applicants, greater is the possibility of finding a suitable employee.
3. Selection: It is the process of choosing and appointing the right candidates for various jobs in an organization through various exams, tests & interviews. It is a negative process as only a few are selected.
4. Placement and Orientation: It is concerned with the process of introducing a new employee to the organization. Orientation/Induction is concerned with the process of introducing a new employee to the organization. The rules and regulations are also imparted.
5. Training and Development: Systematic training helps in increasing the skills and knowledge of employees in doing their jobs through various methods. Development involves growth of an employee in all respects. It is the process by which the employees acquire skills and competence to do their present jobs and increase their capabilities for higher jobs in future.
6 Performance Appraisal: It is concerned with rating or evaluating the performance of employees. Transfers and promotions of the staff are based on performance appraisal.
7. Promotion and career planning: They must encourage employees to grow and realise their full
potential. Promotions are an integral part of people’s career.
8. Compensation: Compensation refers to all forms of pay or rewards going to employees. All organisations need to establish wage and salary plans for their employees.

Sources of Recruitment
There are two sources of Recruitment
1. Internal Sources
2. External Sources
Internal Sources of Recruitment
Internal sources refer to inviting candidates from within the organisation. Following are important sources of internal recruitment:
1. Transfers: It involves the shifting of an employee from one job to another, from one department to another or from one shift to another shift.
2. Promotions: It refers to shifting an employee to a higher position carrying higher responsibilities, prestige, facilities and pay.

INTERNAL SOURCES :
MERITS :
- Employees are motivated as they will get promotion.
- It is a simple process as no cost is necessary.
- As there is chance for higher job, employees may be preparing for higher jobs
- Shifting workforce from the surplus departments is economical.

LIMITATIONS :
- No fresh talent or fresh blood will be there.
- Employees become lethargic as they are sure of getting the job.
- Internal sources not sufficient sometimes for more growth.
- Frequent transfers of employees effects the business.

EXTERNAL SOURCES OF RECRUITMENT :
When the candidates from outside the organization are invited to fill the vacant job position then it is
known as external recruitment. The common methods of external sources of recruitments are:
- Direct Recruitment
- Casual Callers
- Advertisement
- Employment Exchange
- Placement Agencies
- Management Consultants
- Campus Recruitment
- Recommendations of Employees
- Labour Contractors
- Advertising on Television
- Web Publishing etc.

1. Direct Recruitment: Under the direct recruitment, a notice is placed on the notice board of the enterprise specifying the details of the jobs available.
2. Casual callers: Many reputed business organizations keep a data base of unsolicited applicants in their office. This list can be used for Recruitment.
3. Advertisement: Advertisement in media is generally used when a wider choice is required. Example– Newspapers, Internet, Radio, Television etc.
4. Employment Exchange: Employment exchange is regarded as a good source of recruitment for unskilled and skilled operative jobs.
5. Placement Agencies: The job seekers can register in the Placement Agencies .The organization which needs candidates approaches these agencies.
6 Management Consultants : Management consultancy firms help the organisations to recruit technical, professional and managerial personnel. They Maintain data bank of persons with different qualifications and skills. The organization which needs candidates approaches these agencies.
7. Campus Recruitment: Many big organisations maintain a close liaison with the universities, vocational schools and management institutes to recruit qualified personnel
for various jobs.
8. Recommendations of Employees: Applicants introducedby present employees, or their friends and relatives may prove to be a good source of recruitment. Such applicants are likely to be good employees because their background is sufficiently known.
9. Labour Contractors: Labour contractors maintain close contacts with labourers and they can provide the required number of unskilled workers at short notice.
10. Advertising on Television: The detailed requirements of the job and the qualities required to do it are publicised alongwith the profile of the organisation where vacancy exists.
11. Web Publishing: websites such as www.naukri.com, www. jobstreet.com etc., are very commonly visited both by the prospective employees and the organisations searching for suitable people.

Merits of External Sources
Qualified Personnel: By using external source of recruitment the management can attract qualified and trained people to apply for the vacant jobs in the organization.
Wider Choice: The management has a wider choice in selecting the people for employment.
Fresh Talent: It provides wider choice and brings new blood in the organization.
Competitive Spirit: If a company taps external sources, the staff will have to compete with the outsiders.

Limitations of External Sources of Recruitment
Dissatisfaction among existing employees: Recruitment from outside may cause dissatisfaction among the employees. They may feel that their chances of promotion are reduced.
Costly process: A lot of money has to be spent on advertisement therefore this is costly process.
Lengthy Process: It takes more time than internal sources of recruitment.

PROCESS OF SELECTION :
- Preliminary Screening
- Selection Tests
- Employment Interview
- Reference and Background Checks
- Selection Decision
- Medical Examination
- Job Offer
- Contract of employment

1. Preliminary Screening: After applications have been received, they are properly checked as regarding qualification etc. by screening committee. A list of candidates to be called for employment tests made and unsuitable candidates are rejected altogether.

2. Selection Tests: These tests include:
(a) Psychological tests which are based on assumption that human behaviour at work can be predicted by giving various tests like aptitude, personality test etc.
(b) Employment test for judging the applicant’s suitability for the job.

3. Employment Interviews: The main purpose of interview is:
(a) to find out suitability of the candidates.
(b) to seek more information about the candidate.
(c) to give the candidate an accurate picture of job with details of terms and conditions.

4 Reference Checks: Prior to final selection, the prospective employer makes an investigation of the references supplied by the applicant. He undertakes a thorough search into candidate’s family background, past employment, education, police records etc.

5. Selection Decisions: A list of candidate who clear the employment tests, interviews and reference checks is prepared and then the selected candidates are listed in order of merit.

6. Medical/Physical Examination: A qualified medical expert appointed by organization should certify whether the candidate is physically fit to the requirements of a specific job. A proper physical exam will ensure higher standard of health & physical fitness of employees thereby reducing absenteeism.

7. Job Offer: After a candidate has cleared all hurdles in the selection procedure, he is formally appointed by issuing him an Appointment Letter. The broad terms
and conditions, pay scale are integral part of Appointment Letter.

8. Contract of Employment: After getting the job offer, the candidate has to give his acceptance. After acceptance, both employer and employee will sign a contract of employment which contains terms & conditions, pay scale, leave rules, hours of work, mode of termination of employment etc.
Some Common Selection Tests:
- Intelligence Test – to measures the level of intelligence quotient
- Aptitude Test – to find out the potential of candidate of learning new skills and methods.
- Personality Test – to find out the behaviour, intelligence, aptitude, attitude and interest of candidate.
- Trade Test – to check the existing skills, knowledge and proficiency of candidate.
- Interest Test – to check the interest of candidate in the job.

Training
Training is the act of increasing the knowledge and technical skills of an employee for doing a particular job efficiently.
Both existing employees and new employees get acquainted with their jobs and this increases job related skills.
It is essential part of job which is helpful in improving the knowledge of an individual. The nature of jobs has changed with the changes in business environment

IMPORTANCE/BENEFITS of TRAINING AND DEVELOPMENT
Benefits to employee
1. Training provides the employee with the skills to grow in the career. It is helpful in improving knowledge of the processes which is essential for future growth.
2. An individual with training will be able to earn more than those without any kind of training. It improves the working efficiency and results in good performance.
3. Training makes an employee more confident of handling a work. The equipment’s and machines at workplace will be easier to manage with proper training. There will be less accidents.
4. Training improves the self-confidence of the employees and helps them to face new challenges in work. The increased confidence also contributes to the sense of feeling of a higher job satisfaction.
Benefits for organization
1. Training is a systematic way of teaching processes. It will be therefore more efficient and saves the organisation time and money.
2. Training helps individuals and makes them more efficient; the direct result is the improvement in productivity. The rise in employee productivity will result in growth of the company.
3. Training helps in preparing employees in facing new challenges and situations. It helps in building an effective way to counter issues that arise in future.
4. A good training helps in boosting employee morale. It gives proper confidence and motivation which reduces the employee turnover and absenteeism from work.

Training Methods
(A) On the Job Method: It refers to the methods that are applied at the work place, where the employee is actually working. It means learning while doing.
The following are the methods of On-the job training
(B) Off-the-job training methods are conducted in separate from the job environment, study material is supplied, there is full concentration on learning rather than performing, and there is freedom of expression.
ON THE JOB: Induction Apprenticeship
Internship training.
OFF THE JOB:
Vestibule training

INDUCTION TRAIING :
APPRENTICESHIP TRAINING: This type of training is need for the skilled jobs such as plumber, fitter, electrician etc. In this method trainees are put under a master worker.
APPRENTICESHIP TRAINING: This type of training is need for the skilled jobs such as plumber, fitter, electrician etc. In this method trainees are put under a master worker.
INTERNSHIP TRAINING: This type of training is provided jointly by educational institutions and business organizations. A student carry his classes in the educational institution, and at the same time he makes practice with the business organization to get practical training.
VESTIBULE TRAINING: In this method actual work environment is created in the class room and the trainees use same material and equipment as used in the factory. This is done in the cases where employees are required to handle sophisticated machines and equipments.

Meaning

Staffing means putting people to jobs. It starts with human resource planning and covers different functions like recruitment, selection, training, development, promotion and performance appraisal of workforce.

Need and Importance of Staffing

• Obtaining Competent Personnel: Good staffing helps in finding and getting skilled personnel for various jobs.
• High Performance: Good staffing ensures higher performance by putting the right person in the right role.
• Continuous Growth: Good staffing ensures the company can survive and grow over time.
• Optimum Utilization of Human Resources: It stops workers from being underused and keeps labour costs down.
• Improves Job Satisfaction: It makes employees happier and raises their morale.

Benefits of Staffing

• Best Candidate: Staffing helps in finding and picking the best person for the job.
• Increases Efficiency: It makes sure the right people work in the right roles, which improves how well the organization runs.
• Better Growth Opportunities: A company can grow faster if it picks the best candidates for jobs.
• Manpower Planning: Staffing helps plan and use workers well. It also fills empty job spots and keeps work running smoothly.
• Harmony: When the right people get jobs based on merit, the whole workplace works better and stays peaceful.

Staffing as a Part of Human Resource Management (HRM)

Staffing:

• It is a function all managers must perform because all managers deal directly with people.
• Staffing is the role managers play in small organizations.
• As organizations grow and hire more people, a separate human resource department is formed with specialists trained in managing people.
• Early definitions of staffing focused only on hiring people for open positions. Today staffing is part of HRM which covers staffing plus other services like job evaluation and managing labour relations.

Human Resource Management:

• It involves getting, training, keeping and rating a skilled and happy workforce to meet the company's goals well and properly.
• Its goal is to help every person in the organization give their best work.

Staffing Process

1. Estimating Manpower Requirements: The basic process involves planning the manpower needed to fill various positions in the organization and complete tasks based on the organization's goals. In this step:

• Various job positions are created.
• Educational qualifications needed, skill set needed to do each job, past experience needed, etc are decided.

2. Recruitment: A positive process with an aim to draw a larger number of people with good profiles to apply for open positions in the organisation. There are two sources of recruitment: external and internal. In this step, the following is done:

• The job descriptions are created.
• Medium of advertising is decided. The job ad may be shown on the factory gate or may be shared through print media or may be shared through electronic media.
• This involves finding and identifying possible candidates. In this both external and internal sources of recruitment are looked at.

3. Selection: This process involves finding or picking the most fitting candidate for the job from all the people who applied. This process involves a series of events like tests and interviews. It also makes sure:

• That the organization gets the best among all those who applied.
• The confidence and status of the chosen ones are raised.

4. Placement and Orientation: In this process the chosen employee is told about the work setting, is taken to see the workplace, and meets colleagues, subordinates and managers. He/she learns about the company's rules, policies and regulations. Placement means putting the chosen employee in the job he was picked for.

5. Training and Development: In this fast-moving world it is very important for people to stay current with what the job needs and new technology. This process of updating yourself requires training; the organization may have its own training centers or may work with other organizations to train their staff. Through these training programs workers get trained and it also gives benefits to the company.

6. Performance Appraisal: Performance appraisal means to check how well employees are doing against set standards or based on what they did before. Basically, this is a way to give feedback on how employees are performing in an organization.

7. Promotion and Career Planning: Promotion means to move someone up to a higher job or rank. This is a big driver in people's career goals. Promotions push workers to do better. Moving to a higher job means taking on bigger tasks which bring more pay and job happiness.

8. Compensation: Compensation is the money or reward given to workers of an organization through salary and wages. This can be in different forms like salaries, incentives, commissions, bonuses and indirect payment like medical benefits, etc.

Aspects of Staffing

The three aspects of Staffing are as follows:

• Recruitment
• Selection
• Training

1. Recruitment

It refers to the process of hiring possible candidates for a job or a role. It is defined as the process of looking for possible workers and encouraging them to apply for jobs in an organisation.

Sources of Recruitment:

There are two sources of recruitment:

(i) Internal Sources: Under internal source of recruitment the open job positions are filled by bringing in the current employees of the organisation. There are two internal sources of recruitment that are:

Transfers:

• Recruitment through this source means moving of the employees or shifting of the employees from one job to another from one department to another.
• Here the employees can be moved from one shift to another without any major change in the duties and rank of the employee. This is the horizontal move in the position of an employee.
• Transfers may be within the same city or across states.
• Job transfer acts as a key way of avoiding job loss and may also fix individual problems and complaints.

Promotion:

• Through this process, open spots in higher jobs are filled. This is also called the vertical move of employees. In this, people are given higher and bigger duties in the organization.
• This way of doing things helps in raising drive, loyalty and happiness among the employees.
• This also starts a chain of promotions at lower levels too.

Advantages:

• It costs less money.
• It pushes the current employees.
• Through transfer employees get trained also in the form of job roles.

Drawbacks:

• No fresh new ideas will come into the organisation.
• There will be limited options.
• Not good for a new organisation.
• Frequent transfer may drop the output of employee.

(ii) External Sources of Recruitment: When the candidates from outside the organization are asked to fill the open job position then it is called external recruitment. The common methods of external sources of recruitment are:

Direct Recruitment: Under direct recruitment, a notice is put on the notice board of the company showing the details of the jobs open.

Casual Callers: Many well-known business organizations keep a list of people who have applied without being asked in their office. This list can be used for Recruitment.

Advertisement: Job ads in media are usually used when a bigger choice is needed. Example - Newspapers, Internet, Radio, Television etc.

Employment Exchange: Employment exchange is seen as a good source of recruitment for unskilled and skilled operative jobs.

Campus Recruitment and Labour Contractors: Campus recruitment and labour contractors can be used for the purpose.

Advantages:

• Qualified Personnel: By using external sources of recruitment the company can bring in qualified and trained people to apply for the open jobs in the organization.
• Wider Choice: The management has a bigger range to pick people for work.
• Fresh Talent: It gives a bigger range and brings new people into the organization.
• Competitive Spirit: If a company uses external sources, the staff will have to compete with people from outside.

Limitations:

• Dissatisfaction among Existing Employees: Hiring from outside may cause unhappiness among the workers. They may think that their chances of moving up are smaller.
• Costly Process: A lot of money has to be spent on ads so this is a costly process.
• Lengthy Process: It takes more time than internal sources of recruitment.

2. Selection

It can be defined as finding the most promising and most fitting candidate to fill up the open job position in the organisation. The process starts from the screening of job applications and may go on till the letter of employment acceptance and joining of the candidate.

Process of Selection:

Preliminary Screening: It helps in narrowing down of the right and probable candidates and removal of the unqualified or unfit job seekers based on the application forms.

Selection Tests: This may be an online or an offline test. In this test a wide range of questions may be asked to check the learning ability in personality and hands-on skills of the person. Important tests used for the hiring of employees are:

• Intelligence Test: It checks a candidate's ability to learn.
• Aptitude Test: It checks the candidate's ability to pick up new skills.
• Personality Test: It checks the overall personality of the candidate in terms of feelings, reactions, maturity, belief systems etc.
• Trade Test: It checks the candidate's current level of knowledge and skill.
• Interest Test: It finds the candidate's areas of interest.

Employment Interview: This is a formal and thorough talk with the candidate and it is done to check if the candidate fits the job.

Reference and Background Check: This is done in order to check the truth of the facts given by the employees. This is also done to get more facts about the candidate.

Selection Decision: At this stage all the people involved in the hiring process meet and make a final choice regarding hiring of candidates.

Medical Examination: This check is done to see if the candidate is healthy enough before the job offer is made.

Job Offer: In this step of the hiring process the applicants who have passed all the earlier hurdles, a job offer is made to them through the letter of appointment or confirmation. The letter has a date from which the appointee must start work.

Contract of Employment: After the job offer is made the period of work agreed upon by both the sides is carried out.

Difference between Recruitment and Selection:

3. Training and Development

Training: Training means equipping the employees with the needed skill to do the job.

Development: It refers to overall growth of the employee. It focuses on personal growth and successful employee's growth.

Benefits of Training for Organisations:

• Reduced Learning Time
• Better Performance
• Attitude Formation
• Aids in or helps in fixing operational problems
• Managing manpower need
• Helps to take on changes

Benefits of Training for Employees:

• Better career options
• Earning more
• Boost up the morale
• Less chance of accidents

Comparison of Training and Development:

Training, Development and Education

Training: Training is the process of making better an employee's skills and ability needed to do a specific job.

Development: Development refers to the learning chances that are made to help the employee's grow.

Education: It is the way of raising the knowledge and knowledge of the employees. It helps in better understanding of the knowledge.

Training Methods:

(A) On the Job Methods

It refers to the methods that are put to use at the workplace, where the employee is actually working. It means learning while doing. The following are the methods of On-the-job training:

Apprenticeship Training: Under this, the trainee is put under the direction of a skilled person (master worker) who gives him needed skills and watches his work. The trainee gets a monthly amount while learning so that he/she can enjoy the "earn while you learn" plan.

Internship Training: Under this method an educational institute enters into a deal with business organizations for giving real-world knowledge to its students by sending them to business organizations for getting real experience.

Internship Training: It is a combined work of educational institutions and business organisations to give job experience to students and get them ready for real work settings.

Job Rotation: It is a method of training where employees are trained with a full set of skills by moving them from one job to another or from one department to another.

(B) Off the Job Methods

Off-the-job training refers to the training where the workers learn by doing at a place away from the workplace. It includes:

Classroom Lectures/Conference: It is a method of training where facts are shared through lectures for conferences.

Films: It is a method of training where key facts or skills are shown using films, televisions, videos or presentations.

Case Study: It is a method of training where real work situations of the past are talked about to spot problems, look at its causes, and come up with other ways to fix problems.

Computer Modelling: It is a method of training where the real work setting is copied by putting a computer into action.

Vestibule Training: It is a method of training where a copy work setting called 'vestibule' is made to train employees with the technical and working skills.

Programmed Instructions: It is a method of training where specific skills or knowledge are broken up into pieces and put in a logical and step-by-step learning package.