Chapter 6 — Staffing

Chapter 6 covers Staffing — its meaning, importance, and relationship with Human Resource Management, the staffing process (manpower estimation to compensation), sources and process of recruitment, the selection process with various tests, and on-the-job and off-the-job methods of training and development.

Staffing has been described as the managerial function of filling and keeping filled the positions in the organisation structure. In the simplest terms it is 'putting people to jobs'. It begins with workforce planning and includes recruitment, selection, training, development, promotion, compensation, and performance appraisal of the workforce.

Proper staffing helps in discovering and obtaining competent personnel, makes for higher performance by putting the right person on the right job, ensures continuous survival and growth through succession planning for managers, helps to ensure optimum utilisation of human resources by avoiding overmanning or understaffing, and improves job satisfaction and morale of employees through objective assessment and fair reward.

The staffing process involves eight stages: (i) estimating the manpower requirements, (ii) recruitment, (iii) selection, (iv) placement and orientation, (v) training and development, (vi) performance appraisal, (vii) promotion and career planning, and (viii) compensation.

Internal sources include transfers (shifting an employee from one job, department, or shift to another without a substantive change in status) and promotions (shifting an employee to a higher position with higher responsibilities and pay). External sources include direct recruitment, casual callers, advertisements, employment exchanges, placement agencies and management consultants, campus recruitment, recommendations of employees, labour contractors, advertising on television, and web publishing.

Merits include: it motivates employees to improve performance, simplifies selection and placement since candidates are already known, no induction training is needed for internally recruited candidates, helps shift workforce from surplus departments to those with a shortage, and is cheaper than external sources. Limitations include: reduces scope for induction of fresh talent (danger of 'inbreeding'), employees may become lethargic if time-bound promotions are certain, and a new enterprise or one with many vacancies cannot rely entirely on internal sources.

Selection is the process of choosing the best person from a pool of prospective job candidates. The steps are: preliminary screening, selection tests (intelligence, aptitude, personality, trade, and interest tests), employment interview, reference and background checks, selection decision, medical examination, job offer, and contract of employment.

The chapter describes five types of selection tests: intelligence tests (to measure the level of intelligence quotient and learning ability), aptitude tests (to measure potential for learning new skills), personality tests (to assess emotions, maturity, and value system), trade tests (to measure existing skills and level of knowledge in a professional or technical area), and interest tests (to know the pattern of interests or involvement of a person).

On-the-job methods involve learning while doing at the workplace; they include apprenticeship programmes, coaching, internship training, and job rotation. Off-the-job methods involve learning away from the work place before doing; they include classroom lectures/conferences, films, case study, computer modelling, vestibule training, and programmed instruction.

Training is a short-term, job-oriented process by which the aptitudes, skills, and abilities of employees to perform specific jobs are increased. Development is an ongoing, career-oriented process of overall growth that covers not only job performance but also growth of personality and realisation of potential. Education is the process of increasing knowledge and understanding more broadly, developing logical and rational thinking, and is broader in scope than training.

Staffing is an inherent part of Human Resource Management as it is the practice of finding, evaluating, and establishing a working relationship with people for a purpose. In small organisations managers perform all staffing duties, but as organisations grow a separate Human Resource Department with specialists is formed. HRM includes specialised activities such as recruitment, job analysis, compensation planning, training and development, labour relations, grievance handling, and social security.

Yes, the NCERT PDF for Class 12 Business Studies Chapter 6 (Staffing) is available free to download on cbseprepmaster.com with no sign-up required.