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Staffing — notes

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1. Meaning and importance of staffing

Staffing is the managerial function of filling, and keeping filled, the posts created by organising with suitable people. It is continuous (people retire, resign, move up) and is done by every manager.

Importance

  1. Finds competent personnel for all jobs.
  2. Puts the right person on the right job, improving performance.
  3. Ensures continuity and growth through succession planning.
  4. Ensures optimum use of people, avoiding over-manning and under-manning.
  5. Raises job satisfaction and morale through fair hiring, training and pay.
Table of five benefits of good staffing: competent people, the right person on the right job, continuity through successors, optimum use of people, and better morale
Benefit of good staffingWhat it means in practice
Competent peopleCapable candidates are found for every post
Right person, right jobAbility matches the job, so output rises
Continuity and growthSuccessors are ready when seniors leave
Optimum use of peopleNeither idle workers nor endless overtime
MoraleFair hiring, training and pay keep people satisfied

Key terms

Staffing

Filling and keeping filled the positions in the organisation structure with suitable people.

Over-manning

More employees than the work needs, which raises costs.

Under-manning

Fewer employees than the work needs, which causes delays and overtime.

2. Staffing as a part of human resource management

The management of people widened from a labour welfare officer, to personnel management, to human resource management, which treats people as a resource to develop. Staffing is a part of HRM.

Specialised HRM activities: recruitment and job analysis; compensation and incentive plans; training and development; union–management relations and grievance handling; welfare and social security; defending the firm in labour cases.

Managing people: a widening role
Table of specialised human resource activities with examples: recruitment and job analysis, compensation plans, training, employee and union relations, welfare and social security, and legal matters
Specialised HRM activityExample
Recruitment and job analysisStudying what a lab-technician job needs and finding applicants
Compensation and incentive plansDesigning pay scales and bonuses
Training and developmentRunning a safety course for new workers
Employee relationsMeeting the union; handling grievances
Welfare and social securityHealth cover, canteen, provident fund
Legal mattersDefending the firm in labour cases

Key terms

Human resource management

Managing people at work as a resource: hiring, developing, paying and retaining them.

3. The staffing process

  1. Estimating manpower requirements: workload analysis (needed) vs workforce analysis (available).
  2. Recruitment.
  3. Selection.
  4. Placement and orientation: taking up the post; introduction to people, place and rules.
  5. Training and development.
  6. Performance appraisal: actual performance against standards, with feedback.
  7. Promotion and career planning.
  8. Compensation: direct (wages, salary, incentives, commission, bonus) and indirect (insurance, paid leave, other benefits).

Calculation: workers needed = planned work ÷ work per worker; to recruit = needed − (present − leaving).

The staffing process: it starts with estimating manpower needs.
Needed minus available = shortage (recruit) or surplus (redeploy).
Workload analysisWorkforce analysis
QuestionHow many people, and of what kind, are needed?How many people, and of what kind, are available?
Based onPlanned output and work methodsPresent staff, skills, retirements, resignations
ResultRequired staffExisting staff
Table of the later staffing steps: placement and orientation, training and development, performance appraisal, promotion and career planning, and compensation in direct and indirect forms
StepWhat happens
Placement and orientationNewcomer takes up the post and is introduced to people, place and rules
Training and developmentSkills for the present job; growth for future roles
Performance appraisalActual performance compared with standards; feedback given
Promotion and career planningHigher posts for deserving staff; a path for growth
CompensationDirect pay (salary, incentives) and indirect benefits (insurance, paid leave)

Key terms

Workload analysis

Estimating the number and types of employees needed for the planned work.

Workforce analysis

Studying the number and types of employees already available.

Orientation

Introducing a new employee to colleagues, superiors, the workplace and rules; also called induction.

4. Recruitment and its sources

Recruitment: searching for prospective employees and stimulating them to apply (a positive process).

Internal sources

  • Transfer: sideways move, no substantial change in pay or status.
  • Promotion: upward move with more pay, responsibility and status.

Merits: motivation, known candidates, adjusting staff, low cost. Limitations: no fresh talent, complacency, not usable by a new firm, disruption from frequent transfers.

External sources: direct recruitment, casual callers, advertisement, employment exchange, placement agencies and management consultants, campus recruitment, recommendations of employees, labour contractors, web publishing.

Merits: qualified people, wider choice, fresh talent, competition. Limitations: staff dissatisfaction, lengthy, costly, uncertain response.

Table of nine external sources of recruitment with how each works and the jobs it suits, from direct recruitment and casual callers to placement agencies, campus recruitment, labour contractors and web publishing
External sourceHow it worksUsually suits
Direct recruitmentNotice at the premises; walk-in hiringUnskilled, casual jobs
Casual callersUnsolicited applications kept on fileAny job, when a vacancy arises
AdvertisementNewspapers, journals, online job boardsMiddle and senior posts
Employment exchangeGovernment register of job seekersUnskilled and skilled operative jobs
Placement agencies, consultantsSearch and screen for a feeTechnical, professional, top posts
Campus recruitmentFirms visit colleges and institutesFresh graduates and diploma holders
Recommendations of employeesStaff suggest friends or relativesMany jobs; candidates are vouched for
Labour contractorsContractors supply workersUnskilled workers needed quickly
Web publishingFirm's website and job portalsWide range of posts
Table comparing transfer, a sideways move with no substantial change in pay, and promotion, an upward move to a higher post with more pay and status
TransferPromotion
MovementSideways: another job, department or placeUpwards: a higher post
Pay and statusNo substantial changeMore pay, responsibility and status
Main useFill a gap, reduce surplus elsewhere, broaden experienceReward and motivate; fill senior posts
Table of merits of internal sources (motivation, known candidates, adjusting staff, low cost) and limitations (no fresh talent, complacency, unusable by a new firm, disruption from frequent transfers)
Internal sources: meritsInternal sources: limitations
Motivate employeesNo fresh talent or new ideas
Candidates already known, so selection is simplerStaff may become complacent
Transfers can adjust surplus and shortageA new firm cannot use them
Cheaper than outside hiringFrequent transfers can lower productivity
Table of merits of external sources (qualified people, wider choice, fresh talent, competition) and limitations (staff dissatisfaction, a lengthy process, cost, uncertain response)
External sources: meritsExternal sources: limitations
Qualified peopleExisting staff may feel ignored
Wider choiceLengthy process
Fresh talent and ideasCostly (advertising, fees, tests)
Competition keeps insiders alertResponse may be uncertain

Key terms

Recruitment

The search for prospective employees and the effort to make them apply.

Casual callers

Job seekers who apply without any advertised vacancy; their details are kept on file.

Campus recruitment

Recruiting students by visiting colleges and institutes.

5. The selection process

Selection: identifying and choosing the best candidates from the pool (a negative process, since it rejects).

  1. Preliminary screening (application forms).
  2. Selection tests: intelligence (IQ), aptitude (potential to learn), personality (emotions, maturity, values), trade (existing skill), interest (likes and dislikes).
  3. Employment interview: in-depth, two-way conversation.
  4. Reference and background checks.
  5. Selection decision (by the manager concerned).
  6. Medical examination.
  7. Job offer (appointment letter).
  8. Contract of employment (job title, duties, pay, hours, leave, termination).
Selection, step by step
Table of five selection tests: intelligence measures general mental ability, aptitude measures potential to learn, personality measures emotions and values, trade measures existing skill, and interest measures likes and dislikes about work
TestMeasuresExample question or task
IntelligenceGeneral mental ability (IQ)Number series and reasoning puzzles
AptitudePotential to learn new skillsJudging distances, hand–eye coordination
PersonalityEmotions, maturity, valuesHow would you handle an angry customer?
TradeExisting skill and knowledgeWire a switchboard; type a letter
InterestLikes and dislikes about workWould you rather fix machines or meet clients?
Table of the later steps of selection and their purpose: interview, reference checks, selection decision, medical examination, job offer, and contract of employment
StepPurpose
Employment interviewIn-depth conversation: judge suitability, share information
Reference and background checksVerify record and character with referees and past employers
Selection decisionFinal choice, usually by the manager concerned
Medical examinationPhysical fitness for the job
Job offerAppointment letter with joining date
Contract of employmentSigned terms: duties, pay, hours, leave, termination

Key terms

Selection

Choosing the most suitable candidates from among the applicants.

Aptitude test

Measures a person's potential for learning new skills.

Trade test

Measures the existing knowledge and proficiency of a person in a trade.

6. Training and development

Training builds skill for a particular job; development aims at the overall growth of the individual; education builds general knowledge and understanding.

Benefits to the organisation: less wastage, higher productivity and profit, future managers, lower absenteeism and turnover, quicker response to change. Benefits to employees: better career, higher earnings, fewer accidents, more confidence and satisfaction.

On-the-job methods: apprenticeship, coaching, internship, job rotation. Off-the-job methods: classroom lectures and conferences, films, case study, computer modelling, vestibule training, programmed instruction.

Table comparing training (skill for a particular job), development (overall growth, career-oriented) and education (general knowledge and understanding), with an example of each
TrainingDevelopmentEducation
AimSkill for a particular jobOverall growth of the personGeneral knowledge and understanding
ScopeNarrow, job-orientedWide, career-orientedWidest
ExampleLearning a new billing machineA leadership programmeA degree course
Table of benefits of training: to the organisation (less wastage, higher productivity, future managers, lower absenteeism and turnover, quicker response to change) and to the employee (career, earnings, safety, satisfaction)
Benefits to the organisationBenefits to the employee
Less wastage of time and materialsBetter career prospects
Higher productivity and profitHigher earnings
Ready supply of future managersFewer accidents on machines
Lower absenteeism and turnoverMore confidence and job satisfaction
Quicker response to change
Table of on-the-job training methods: apprenticeship under a master worker, coaching by a superior, internship combining college and work, and job rotation between departments
On-the-job methodHow it works
ApprenticeshipLearner works for a long period under a master worker (electricians, plumbers)
CoachingA superior guides the trainee and reviews the work
InternshipJoint programme: college theory plus practical work in a firm
Job rotationTrainee moves between departments to gain wide experience
Table of off-the-job training methods: classroom lectures, films, case studies, computer modelling, vestibule training and programmed instruction, with how each works
Off-the-job methodHow it works
Classroom lectures and conferencesExperts explain concepts to a group
FilmsShow what should be done and how
Case studyTrainees analyse real-life situations and suggest solutions
Computer modellingSoftware simulates the work situation
Vestibule trainingPractice on similar equipment in a separate area
Programmed instructionMaterial in small units, in a logical order, learnt step by step

Key terms

Vestibule training

Practice on equipment similar to the real one, set up in a separate area away from the work floor.

Job rotation

Moving a trainee from one department to another to give wide experience.

Programmed instruction

Learning material broken into small units arranged in a logical sequence.

Exam tips

Common mistakes

  • Swapping workload analysis (needed) and workforce analysis (available).
  • Calling a sideways move a promotion: a promotion means a higher post.
  • Putting the medical examination first: it comes after the selection decision.
  • Confusing aptitude (potential) with trade (present skill).
  • Calling vestibule training on-the-job: it is off the job.
  • Writing "training is development": training is job-specific, development is overall growth.

How marks are usually awarded

  • 1 mark: one correct option or term.
  • 3 or 4 marks in cases: quote the line and name the step, source, test or method.
  • 3 marks: three points with a line each (about 50–80 words).
  • 5 marks: five points with headings (about 80–120 words).

SOYL cases use imagined businesses; your board paper will have its own. Read every line before answering.