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Business StudiesXII

Quick Revision Notes STAFFING 1. Meaning: Staffing means putting the right person in the right job. It is a management process concerned with obtaining, utilising and maintaining a satisfied work force. 2. Features of staffing: i. ii. iii. iv. v. vi. 3. It is an integral part of management process as the organisation cannot exist without human resource It is pervasive performed and existing at all levels It deals with people as it concerns with the people at workplace It is a continuous process as it has to meet the growing needs of the people It has a wider scope applicable to planning, recruitment, selection, placement and training It is a multiple objective activity

Need and importance of staffing Proper staffing ensures following benefits to the organisation: i. ii. iii. iv. v. Helps in discovering and obtaining competent personnel for various job; Makes for higher performance by putting right person on the right job; Ensures continuous survival and growth of the enterprise. Helps to ensure optimum utilisation of human resources. Improves job satisfaction and morale of employee through objective assessment and fair rewards for their contribution.


Human resource management (HRM) Meaning: It is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner. It includes many specialised activities and duties which the human resource personnel must perform. These duties are recruitment, analysing jobs, developing compensation and incentive plans, training and development of employee, maintaining labour relations, handling grievances and complaints, providing for social security and welfare of employees.


Steps in staffing process 1. Estimating Manpower Requirement knowing the number and type of personnel required to perform various jobs including forecasting the future manpower requirement. The manpower requirement involves two kinds of analysis 2. Workload analysis determining the number and type of workforce Workforce analysis-This shows the number and type of human resource actually available in the organisation i.e. it is understaffed or overstaffed.

Recruitment the process of searching for prospective employees and stimulating

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them to apply for jobs in the organisation. The aim is to create a pool of suitable and qualified candidates through external and internal sources. 3. Selection the process of identifying and choosing the best person from the pool of prospective candidates. It is a negative process because candidates get rejected after the preliminary screening tests etc. It can be a motivator also to the selected candidates as it makes him realise his selfesteem. 4. Placement and Orientation After selection the selected candidate is assigned the specific job based on his qualities and qualification. Orientation refers to the process of introducing and familiarising the new employee with other employees, rules and policies of the organisation. Training and Development Training is process by which the aptitudes, skills and abilities of employee to perform specific jobs are increased. Development refers to the learning opportunities designed to help the employee to grow. 6. Performance Appraisal evaluating an employees current and/or past performance to determine their potential for development for better assignment, promotions and transfers. Promotion and Career Planning it includes promotion, transfer and demotion of personnel based on their performance appraisal. Thus, prompting the employees to better their performance by advancing them up in the managerial hierarchy. Compensation Financial compensation play an important role in attracting and retaining a productive workforce.





Aspects or components of staffin Recruitment: aiming at attracting a wide variety of candidates to apply for a particular job


Business StudiesXII

Selection: Choosing the most suitable candidate for the job Training: Upgrading the skill and knowledge to increase the ability of work performance 7. Sources of Recruitment:

Internal Sources of recruitment 1. Transfer: it involves the shifting of an employee from one job to another, one department to another or from one shift to another, without any change in the responsibilities, rank, rate of compensation or status of the employee. Promotion: Refers to shifting an employee to a higher position carrying higher responsibilities, prestige, facilities and pay. Morale boosters Economical Familiarity Industrial peace Better selection and placement A tool of training the employees to prepare them for higher jobs


Advantage of Internal Sources of Recruitment i. ii. iii. iv. v. vi.

vii. Benefits of shifting work force. Limitation of Internal Sources of Recruitment 1. 2. 3. 4. 5. 6. i. Restricted choice Lack of competition Conflict Stopping of infusion of new blood Not suitable for a new enterprise Reduce productivity. Qualified personnel

Merits of External Sources of Recruitment

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ii. iii. iv. i. ii. iii.

Wider choice Fresh talent Competitive spirit Dissatisfaction among existing employees. Costly process Lengthy process

Limitation of External Sources of Recruitment

Selection Process Is the process of identifying and choosing the best person out of prospective candidates for a job. Preliminary screening Here the chosen candidates, on the basis of application form are called for interview. It is the first time the candidates come face to face with the management. Selection test: Gives an idea about their aptitude, personality, interest & IQ levels. Employment interview: It is a formal face to face conversation between the employer and the applicant. It basically aims at procuring maximum information about the candidate. Reference and background checks - It helps in knowing the past service record ,financial status, reputation and police record of the candidates. Selection decision- Views and opinion of the concerned manager is taken on the final short listed candidates for final selection. Medical examination- of the selected candidate to determine his health status and stamina is taken. Job offer-Through a letter of appointment containing the terms and condition of employment, pay scales and perks are given. Contract of employment-After the job offer is accepted the contract is entered into stating the date of joining, hours of work, pay-scales, leave rules, disciplinary rules.

Training, Development and Education Education is the process of increasing the knowledge and understanding of employees. It is understanding and interpretation of knowledge. Importance / benefits of Training and Development Organisation: i. ii. iii. iv. v. vi. Improvement in quality and quantity of output. Better utilisation of material, machinery and human resources. Improves employee productivity leading to higher profits. Develops future managers who can manage the enterprise in emergency Improves employee morale, reduces absenteeism and turnover. Organisations quick response to change in technology


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Employee i. ii. iii. iv. Improves skills and knowledge lead to better career to the individual. Increased performance by the individual help to earn more. Training makes the employee more efficient to handle machines. Increases satisfaction and morale

Difference between Training and Development Basis 1. Meaning Training Training is a process of increasing the knowledge and skills. It is to enable the employee to do the job better. Development Development is a process of learning and growth.


Depth of knowledge

It is to enable the overall growth of the employee.


Orientation Methods of Training i.

A job- oriented process.

A career- oriented process.

Apprenticeship Programme training: The workers seeking to enter skilled jobs (e.g. plumber, electrician or iron worker, etc.) are sent for apprenticeship training programme under the guidance of a master worker. Internship: This refers to a joint programme of training in which technical institution and business firms cooperate. Vestibule training: Employee learns their jobs on the equipment they will be using. Training is conducted away from the actual work floor.Actual work environment is created in classroom and employees use same material, equipment etc. Its a costly method of training. Job Rotation: this kind of training involves shifting the trainee from one department to another, or from one job to another. This enables the trainee to gain a broader understanding of all jobs of the business.

ii. iii.