M.E.S.

INDIAN SCHOOL, DOHA –QATAR

Notes (2023 – 2024)
Section : Boys’ Date : 24/09/2023
Class & Div. : XII (G & F) Subject: Business Studies
Lesson / Topic: Chapter 6-Staffing
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MEANING OF STAFFING
Staffing has been described as the managerial function of filling and keeping filled the positions in the
organisation structure. Staffing is process of recruiting right people for the right job.

IMPORTANCE OF STAFFING
1. Discovering Competent Personnel: Proper staffing helps in discovering and obtaining competent
personnel for various jobs.
2. High Performance: Proper staffing ensures higher performance by putting right person on the right job.
3. Continuous growth of enterprise: Proper staffing ensures continuous survival and growth of the
enterprise.
4. Optimum utilization of human resources: It prevents under-utilization and overmanning of personnel
and thus reduces labour cost.
5. Higher job satisfaction: It improves job satisfaction and morale of employee.

STAFFING AS A PART OF HUMAN RESOURCE MANAGEMENT (HRM)

• Staffing function deals with human element, this plays an important role in the success of an
organisation.
• As an organization grow the number of people employed increases and a separate department called the
human resource department is formed which consists of specialists and experts in dealing with people.
• Human Resource Management Involves procuring, developing, maintaining and appraising competent
and satisfied workforce to achieve the goals of the organization efficiently and effectively.
PROCESS OF STAFFING
1. Estimating Manpower Requirement:
 Drafting work force requirements in an organisation, defining the job related activities and recruiting
personnel’s with a specific set of skills, knowledge, qualification and experience.
 Work force analysis enables the enterprise to assess the number and type of employees necessary for the
completion of a work.
 It helps in determining whether an enterprise is overstaffed or under staffed and also enables an
organisation to make necessary steps to take corrective action.
2. Recruitment:
 Recruitment may be defined as the process of searching for prospective employees and stimulating them
to apply for jobs in the organisation.
 Both internal and external sources may be used for searching employees.

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 3. Selection:
 It is the process of choosing and appointing the right candidates for right job in an organization by
conducting various exams, tests and interviews.
 It ensures that the organisation gets the best candidate.
 The selection process enhances the self-esteem and prestige of the selected candidates.
4. Placement and Orientation:
 Orientation is, thus, introducing the selected employee to other employees and familiarising him with the
rules, regulations and policies of the organisation.
 Placement refers to the employee occupying the position or post for which the personhas been selected.
5. Training and Development:
 Systematic training helps in increasing the skills and knowledge of employees in doingtheir jobs through
various methods.
 Development involves growth of an employee in all aspects such as performance,knowledge etc.
6. Performance Appraisal:
 Performance appraisal means evaluating an employee’s current and/or past performance as against
certain predetermined standards.
 Once an employee has undergone a training, his/ her performance is evaluated.
 It is concerned with continuous evaluation of the performance of employees in anorganisation.
7. Promotion and Career Planning:
 Promotion means being placed in positions increased responsibility.
 Promotion and career planning is very important to boost the morale of employees and motivate them to
utilize their full potential.
8. Compensation:
Compensation refers to all forms of payment made by an enterprise to their employees. E.g. salaries,
incentives, commission etc.
RECRUITMENT
Recruitment may be defined as the process of searching for prospective employees andstimulating
them to apply for jobs in an organization.
SOURCES OF RECRUITMENT
1. Internal Sources of Recruitment:
Internal sources refer to inviting candidates from within the organization.
TYPES ADVANTAGES LIMITATION

• Transfers: It involves the • Employees are motivated • The scope of induction of

shifting of an employee to improve their fresh talent is reduced.
from one job to another, performance. • The employee may
from one department to • Internal recruitment also become lethargic.
another or from one shift simplifies the process of • The spirit of competition
to another shift. selection & placement. among the employees
• No wastage of time on may be hampered.
• Promotions: It means the employee training • Frequent transfers of
placing an employee to a and development. employees may often
higher position carrying • Filling of jobs internally is reduce the productivity
higher responsibilities, cheaper. of the organization.
prestige, facilities and
pay.

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 External Sources of Recruitment
When the candidates from external sources are invited to fill in the vacant job position then it is
known as external recruitment.

The common methods of external sources of recruitments are:

1. Direct Recruitment: Under the direct recruitment, a notice is put up on the notice boardof the enterprise
specifying the details of the jobs available.
2. Casual callers: Many reputed business organizations keep a data base of unsolicitedapplicants in their
office. This list can be screened and best candidate is selected.
3. Advertisement: Advertisement media is used when a wider range of candidates to choiceare required.
Example– Newspapers, Internet, Radio, Television etc.
4. Employment Exchange: Employment exchange run by government is regarded as a good source of
recruitment for unskilled and skilled operative jobs.
5. Placement Agencies and Management consultants: Placement agencies provide anationwide service in
matching personnel demand and supply.
6. Campus Consultants: Campus recruitment means recruitment of candidates directlyfrom management
and technical institutions and universities.
7. Labour Contractors: Labour contractors maintain close contacts with labourers andthey can provide the
required number of unskilled workers at short notice.
8. Advertising on Television: The practice of telecasting of vacant posts over Television isgaining
importance these days.
9. Web Publishing: There are certain websites specifically designed and dedicated for thepurpose of
providing information about both job seekers and job opening.
10. Recommendations of Employees: Applicants introduced by present employees, or theirfriends and
relatives may prove to be a good source of recruitment.

ADVANTAGES
LIMITATIONS
• Qualified Personnel: By using
external source of recruitment the • Dissatisfaction among existing
management can attract qualified employees: Recruitment from
and trained people to apply for the outside may cause dissatisfaction
vacant jobs in the organization. among the employees of the o. They
• Wider Choice: The management has may feel that their chances of
a wider choice in selecting the promotion are reduced.
people for employment. • Costly process: A lot of money has to
• Fresh Talent: It provides wider be spent on advertisement therefore
choice and brings new blood in the this is costly process.
organization. • Lengthy Process: It takes more time
• Competitive Spirit: If a company than internal sources of recruitment.
taps external sources, the staff will
have to compete with the outsiders.

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 SELECTION
Selection is the process identifying and choosing the best candidate from within the organization or from
outside, the most suitable person for the current position or for the future position.
PROCESS OF SELECTION
1. Preliminary Screening:
Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the
information supplied in the application forms.
2. Selection Tests:
These tests include:
(a) Intelligence Tests: It tests a person’s ability to make decisions and adjustments.
(b) Aptitude Tests: It is a measure of individuals potential for leaning new skill.
(c) Personality Tests: personality tests provide clues to a person’s emotion.
(d) Trade Tests: It measures the existing skills of an individual.
(e) Interest Tests: It allows to know the Pattern of interests and involvement of a person.

3. Employment Interviews:
It is an in-depth formal conversation conducted
 To find out suitability of the candidate for a specific post.
 To seek more information about the candidate.
 To give the candidate an accurate picture of job with details of terms and conditions and toclarify his
doubts.
4. Reference Checks:
 The prospective employer checks the authenticity of the references given by theapplicant.
 They conduct a search into candidate’s family background, past employment, education,police records etc.
5. Selection Decisions:
A list of candidates who clear the tests and interviews are generally considered for the final selection
based on managers opinion.
6. Medical/Physical Examination:
 A medical expert or a certified clinic appointed by organization has to 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 selection procedure and medical examination, he/she is formally appointed by issuing himan
Appointment Letter.
8. Contract of Employment:
 After getting the job offer, the candidate has to give his acceptance.
 Both employer and employee has to sign a contract of employment which contains terms& conditions, pay
scale, leave rules, hours of work, mode of termination of employment etc.

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 TRAINING AND DEVELOPMENT
Training: Training is an act of increasing the knowledge and technical skills of an employee fordoing a
particular job efficiently. Both existing employees and new employees get acquainted with their jobs and
this increases the job related skills.

BENEFITS TO ORGANISATION
BENEFITS TO EMPLOYEE
Systematic learning leads to
Better career opportunitiesdue
wastage of efforts and money. to improved skills and
Increases productivity thereby knowledge.
leading to increase in profit. Higher earning leads to higher
Equips the future managers tohandle earnings.
emergencies. Improves efficiency in handling
Increases employee morale and machines.
reduces absenteeism. Improves satisfaction and
Effective response to changing morale of employees.
environment.

Development refers to the learning opportunities designed to help employees grow. It covers
notonly those activities, which improve job performance but also those which bring about growth of
the personality.
TRAINING DEVELOPMENT
It is a process of increasing knowledge and It is a process of learning and growth.
skills.
It is to enable the employee to do the job It is to enable the overall growth of the
better. Employee
It is a job-oriented process. It is a career-oriented process.

TRAINING METHODS
(A) On the Job Method:
It refers to the methods that are applied at the work place, where the employee is actuallyworking. It
means learning while doing.

1. Apprenticeship Programme:
 Apprenticeship programmes put the trainee under the guidance of a master worker.
 The trainee receives stipend while learning so that he/she can enjoy “earn while youlearn” scheme.

2. Internship Training:
The educational institutes enters into a contract with business firms or corporates for providing practical
knowledge to its students by sending them to business organizations for gaining practical experience.
(B) Off the job methods:
1. Vestibule Training: Employees learn their jobs on the equipment they will be using, but the training
is conducted away from the actual work floor.
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