EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

LESSON 5:

5. Staffing the Engineering Organization

a. Definition of Staffing
a.1. Nature of Staffing
a.2. Recruitment
a.3. Selection
a.4. Training
a.5. Identifying Training Needs
a.6. Common Types of Training
a.7. Human Asset Accounting
a.8. Movement of Personnel

LEARNING OUTCOMES:
1. Students will be able to define staffing, explain its importance in an engineering
organization, and describe the key components of the staffing process, including recruitment,
selection, training, and development. They will be able to identify training needs and
implement appropriate training programs.
2. Students will be able to develop strategies for attracting, selecting, and retaining top
engineering talent. They will understand the concept of human asset accounting and be able
to measure the effectiveness of staffing initiatives. Students will also be able to manage
employee movement within the organization through effective planning and development.
3. Students will be able to align staffing strategies with the overall goals of the engineering
organization. They will understand the importance of developing a skilled and motivated
workforce to achieve organizational success. Students will be able to evaluate the impact of
staffing decisions on organizational performance and make recommendations for improvement.

GRACE A. LLOBRERA-DIAMSE 73
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

Staffing the Engineering Organization: A Deep Dive

Staffing is a critical management function that involves the process of determining human
resource needs, recruiting, selecting, training, and developing human resources for jobs
created by an organization. It essentially entails matching the right people with the right jobs
to achieve organizational goals.

In simpler terms, staffing is about ensuring that the engineering organization has the right
number of qualified people with the appropriate skills and abilities to perform the tasks
required for the company's success. It's a strategic process that directly impacts an
organization's productivity, innovation, and overall performance.

Key elements of staffing include:

 Human resource planning: Forecasting future labor needs based on organizational goals
and strategies.
 Recruitment: Attracting qualified candidates for open positions.
 Selection: Choosing the best candidate from a pool of applicants.
 Induction and orientation: Introducing new employees to the organization and their
roles.
 Training and development: Enhancing employees' skills and knowledge.
 Performance appraisal: Evaluating employee performance to identify strengths,
weaknesses, and development needs.
 Employment decisions: Making decisions about promotions, transfers, demotions, and
terminations.

By effectively managing these elements, organizations can build a high-performing engineering

team capable of driving innovation and achieving business objectives.

a.1. Nature of Staffing

Staffing is a dynamic and pervasive function within an organization. Its nature is characterized
by several key aspects:

1. Pervasive Function

 All-encompassing: Staffing is not confined to a specific department or level; it

permeates the entire organization.
 Continuous Process: It's an ongoing activity, influenced by factors like employee
turnover, growth, and changes in organizational structure.

GRACE A. LLOBRERA-DIAMSE 74
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

2. Human-Oriented

 People-Centric: Staffing focuses on people as the organization's most valuable asset.

 Behavioral Science Basis: It draws heavily from psychology, sociology, and other
behavioral sciences to understand human behavior and motivation.

3. Line and Staff Function

 Line Management Involvement: While HR departments typically handle staffing, line

managers play a crucial role in identifying needs, selecting candidates, and evaluating
performance.
 Collaborative Effort: Effective staffing requires close cooperation between HR and line
management.

4. Creative Function

 Problem-Solving: Staffing involves finding innovative solutions to address workforce

challenges.
 Anticipating Needs: It requires foresight to predict future staffing requirements.

5. Decision-Making

 Critical Choices: Staffing decisions impact the organization's success, making it a high-
stakes function.
 Strategic Importance: These decisions align with the organization's overall goals and
strategy.

6. Social Responsibility

 Ethical Considerations: Staffing practices should adhere to ethical principles and avoid
discrimination.
 Community Impact: Organizations have a responsibility to contribute to the
development of the workforce.

7. Interdisciplinary Function

 Multiple Perspectives: Staffing involves input from various departments, including

finance, marketing, and operations.
 Integrated Approach: Success depends on a holistic view of the organization's needs.

In essence, staffing is a complex function that requires a balance of strategic thinking, human
relations skills, and business acumen. It is a cornerstone of organizational effectiveness.

GRACE A. LLOBRERA-DIAMSE 75
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

a.2. Recruitment

Recruitment is the process of identifying, attracting, and screening potential employees for a
job vacancy. It's the initial step in the staffing process, and its effectiveness significantly
impacts the quality of the talent pool.

Key Steps in Recruitment:

1. Job Analysis and Job Description: Clearly defining the job roles, responsibilities, and
qualifications is crucial for effective recruitment.
2. Recruitment Planning: Determining the number of employees needed, the recruitment
timeline, and the budget.
3. Identifying Sources: Choosing the appropriate channels to find potential candidates,
such as job boards, social media, employee referrals, and campus recruitment.
4. Attracting Candidates: Developing effective job postings, crafting compelling employer
branding, and utilizing various recruitment marketing strategies to attract qualified
candidates.
5. Screening Resumes and Applications: Reviewing resumes and applications to shortlist
candidates based on job requirements.
6. Initial Screening: Conducting preliminary interviews or assessments to narrow down the
candidate pool.

Recruitment Methods:

 Internal Recruitment: Filling vacancies from within the organization through

promotions, transfers, or employee referrals.
 External Recruitment: Sourcing candidates from outside the organization through job
boards, social media, and other external channels.

Challenges in Recruitment:

 Talent Shortage: Competition for skilled talent in certain industries.

 Employer Branding: Creating a strong employer brand to attract top candidates.
 Candidate Experience: Providing a positive candidate experience throughout the
recruitment process.
 Cost: Managing recruitment costs while ensuring a quality hiring process.

Effective recruitment is essential for building a high-performing engineering team. It involves

careful planning, strategic sourcing, and a strong employer brand.

a.3. Selection

Selection is the process of choosing the most suitable candidate from a pool of applicants for
a specific job. It involves evaluating candidates against job requirements to determine their fit
for the organization.

GRACE A. LLOBRERA-DIAMSE 76
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

Key Steps in Selection:

1. Initial Screening: Reviewing resumes and applications to shortlist candidates based on

job qualifications.
2. Employment Tests: Administering aptitude, personality, or skills tests to assess
candidates' abilities.
3. Interviews: Conducting structured or unstructured interviews to evaluate candidates'
knowledge, skills, and fit with the organization.
4. Background Checks: Verifying information provided by candidates, including
employment history, education, and criminal records.
5. Reference Checks: Contacting previous employers or references to gather additional
information about candidates.
6. Job Offer: Extending a job offer to the selected candidate, including details about
salary, benefits, and start date.

Selection Methods:

 Interviews: Structured, unstructured, or behavioral interviews.

 Employment Tests: Aptitude, personality, cognitive ability, and skills tests.
 Assessment Centers: Comprehensive evaluation programs involving multiple
assessment methods.
 Work Samples: Assessing candidates' performance on actual job tasks.

Challenges in Selection:

 Candidate Evaluation: Accurately assessing candidates' potential for job success.

 Legal Compliance: Adhering to employment laws and regulations.
 Job Fit: Matching candidates with the right job and organizational culture.
 Time Constraints: Efficiently completing the selection process.

Effective selection is critical for building a high-performing engineering team. It requires a

systematic approach, valid assessment methods, and a focus on selecting candidates who align
with the organization's goals and values.

a.4. Training

Training is the systematic process of imparting knowledge, skills, and attitudes to employees
to enhance their performance in current roles and prepare them for future responsibilities. It's
a crucial component of human resource development and organizational effectiveness.

Importance of Training:

 Improved Performance: Enhancing employee skills and knowledge leads to increased

productivity and efficiency.

GRACE A. LLOBRERA-DIAMSE 77
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

 Skill Development: Developing employees' capabilities to meet current and future job
requirements.
 Adaptability: Preparing employees for technological advancements and changes in the
workplace.
 Employee Morale: Investing in employee development boosts morale and job
satisfaction.
 Reduced Turnover: Effective training programs can reduce employee turnover by
increasing job satisfaction and engagement.

Types of Training:

 Orientation Training: Introducing new employees to the organization, its culture, and
job roles.
 Skill-Based Training: Developing specific skills required for job performance, such as
technical skills, software proficiency, or leadership skills.
 Management Development: Training for managers and supervisors to enhance their
leadership, decision-making, and problem-solving abilities.
 Professional Development: Providing opportunities for employees to acquire advanced
knowledge and certifications in their field.

Training Methods:

 On-the-Job Training: Learning by doing, under the guidance of experienced employees.

 Classroom Training: Instructor-led training sessions in a classroom or conference room.
 E-learning: Online training modules and programs.
 Simulations: Creating realistic work environments for hands-on practice.
 Mentoring and Coaching: Providing guidance and support from experienced employees.

Training Evaluation:

 Assessing Training Effectiveness: Measuring the impact of training on employee

performance and organizational outcomes.
 Identifying Training Needs: Determining future training requirements based on
performance gaps and organizational goals.

Effective training is essential for the success of any engineering organization. By investing in
employee development, companies can create a skilled and motivated workforce capable of
driving innovation and achieving business objectives.

a.5. Identifying Training Needs

Identifying training needs is the cornerstone of effective training programs. It involves

determining the specific knowledge, skills, and abilities employees require to improve their
performance and achieve organizational goals.

GRACE A. LLOBRERA-DIAMSE 78
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

Methods for Identifying Training Needs:

1. Performance Appraisal: Analyzing performance reviews to identify skill gaps and areas
for improvement.
2. Employee Surveys and Feedback: Gathering input from employees about their training
needs and preferences.
3. Job Analysis: Examining job descriptions and responsibilities to determine required
skills and knowledge.
4. Observation: Observing employees on the job to identify performance issues and
training opportunities.
5. Exit Interviews: Gathering feedback from departing employees about their training
experiences and suggestions for improvement.
6. Competitor Analysis: Identifying industry best practices and training programs to
benchmark against.
7. Technology Assessment: Evaluating the impact of new technologies on job roles and
identifying training needs to adapt to changes.

Key Considerations:

 Organizational Goals: Aligning training needs with the organization's strategic

objectives.
 Employee Development: Identifying opportunities for career advancement and skill
development.
 Performance Improvement: Focusing on areas where training can have the greatest
impact on performance.
 Cost-Benefit Analysis: Evaluating the return on investment of different training options.

By conducting a thorough training needs analysis, organizations can develop targeted and
effective training programs that enhance employee performance and contribute to overall
organizational success.

a.6. Common Types of Training

Training programs can vary widely depending on the organization's needs, industry, and
employee roles. Here are some common types of training:

Basic Skills Training

 Literacy and Numeracy: Improving basic reading, writing, and mathematical skills.
 Computer Skills: Teaching employees how to use basic computer applications.
 Communication Skills: Enhancing verbal, written, and interpersonal communication
abilities.

GRACE A. LLOBRERA-DIAMSE 79
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

Technical Skills Training

 Product Knowledge: Providing information about products, services, or technologies.

 Software Training: Teaching employees how to use specific software applications.
 Equipment Operation: Training employees on how to operate machinery or equipment
safely and efficiently.

Managerial and Leadership Development

 Leadership Development: Developing leadership skills, such as decision-making,

problem-solving, and strategic thinking.
 Management Training: Teaching managers how to plan, organize, and control resources
effectively.
 Supervisory Training: Providing training on employee supervision, performance
management, and team building.

Customer Service Training

 Customer Interaction: Teaching employees how to interact with customers effectively.

 Complaint Handling: Training employees on how to handle customer complaints and
resolve issues.
 Sales Training: Developing sales skills, including product knowledge, sales techniques,
and closing deals.

Safety Training

 Hazard Identification: Teaching employees how to identify potential hazards in the

workplace.
 Emergency Preparedness: Training employees on how to respond to emergencies.
 First Aid and CPR: Providing basic first aid and CPR training.

Professional Development

 Continuing Education: Supporting employees in obtaining industry certifications or

advanced degrees.
 Career Development: Helping employees identify career goals and develop a plan to
achieve them.
 Soft Skills Training: Enhancing interpersonal skills, such as teamwork, negotiation, and
conflict resolution.

The choice of training type depends on various factors, including the target audience, training
objectives, and available resources. It's essential to align training programs with the
organization's overall goals and employee development needs.

GRACE A. LLOBRERA-DIAMSE 80
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

a.7. Human Asset Accounting

Understanding Human Asset Accounting

Human asset accounting is the process of quantifying the value of an employee to an

organization.

Unlike traditional accounting, which focuses on tangible assets, human asset accounting
attempts to measure the intangible assets represented by the workforce.

While still a developing field, it recognizes that employees are a significant contributor to an
organization's success and that their value should be reflected in the financial statements.

Challenges in Human Asset Accounting

 Subjectivity: Measuring human capital is inherently subjective as it involves assessing

qualities like creativity, innovation, and problem-solving skills.
 Valuation: Determining the monetary value of an employee is complex and often relies
on estimates and models.
 Data Availability: Acquiring accurate and comprehensive data on employee
performance, potential, and contributions can be challenging.
 Accounting Standards: There are no universally accepted accounting standards for
human asset accounting, making it difficult to compare organizations.

Benefits of Human Asset Accounting

Despite the challenges, human asset accounting can provide valuable insights:

 Strategic Decision Making: By understanding the value of human capital, organizations

can make informed decisions about investments in employee development and
retention.
 Performance Measurement: Human asset accounting can help measure the return on
investment in human capital.
 Risk Management: Identifying key employees and their contributions can help mitigate
risks associated with employee turnover.
 Investor Relations: Providing information about human capital can enhance investor
confidence and transparency.

Methods of Human Asset Accounting

While there's no definitive method, some common approaches include:

 Human Capital Valuation Models: These models attempt to quantify the financial value
of employees based on factors like education, experience, and productivity.

GRACE A. LLOBRERA-DIAMSE 81
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

 Cost-Benefit Analysis: Evaluating the costs of employee training and development

against their contribution to revenue and profits.
 Human Capital Index: Developing a composite index to measure various aspects of
human capital, such as skills, knowledge, and engagement.

It's important to note that human asset accounting is still an evolving field, and there is no one-
size-fits-all approach. Organizations should carefully consider the benefits and challenges
before implementing such a system.

a.8. Movement of Personnel

Movement of personnel refers to the transfer, promotion, demotion, or termination of

employees within an organization. It's an essential aspect of human resource management that
impacts both the individual and the organization.

Types of Personnel Movement

1. Promotion: Advancing an employee to a higher position with increased responsibilities

and usually a higher salary.
2. Transfer: Moving an employee to a different job within the same organization, often at
the same level of responsibility.
3. Demotion: Reducing an employee's position or responsibilities, often due to
performance issues or organizational restructuring.
4. Termination: Ending the employment relationship, either voluntarily (resignation) or
involuntarily (layoff, dismissal).

Factors Affecting Personnel Movement

 Employee performance: High performers are often considered for promotions, while
underperformers may face demotion or termination.
 Organizational needs: Changes in business strategy, technological advancements, or
restructuring can lead to transfers, promotions, or layoffs.
 Employee desires: Employees may seek promotions, transfers, or resignations based on
personal goals and career aspirations.
 Economic conditions: Economic downturns may lead to layoffs or hiring freezes, while
economic growth can create opportunities for promotions and transfers.

Importance of Effective Personnel Movement

 Employee satisfaction: Proper handling of personnel movements can boost employee

morale and job satisfaction.
 Organizational performance: Effective movement of personnel can optimize talent
utilization, improve productivity, and enhance overall organizational performance.
 Succession planning: Identifying and developing high-potential employees for future
leadership roles.

GRACE A. LLOBRERA-DIAMSE 82
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

 Legal compliance: Adhering to labor laws and regulations during personnel movements.

Challenges in Personnel Movement

 Resistance to change: Employees may resist transfers or demotions due to fear of the
unknown or career setbacks.
 Fairness and equity: Ensuring fair treatment of employees during promotions, transfers,
and terminations.
 Succession planning: Identifying and developing qualified successors for critical
positions.
 Cost implications: Managing the costs associated with recruitment, training, and
severance pay.

Effective personnel movement requires careful planning, clear communication, and fair
treatment of employees. It is a critical component of human resource management that
contributes to the overall success of the organization.

References:

o "Effective Training: Systems, Strategies, and Practices" by P. Nick Blanchard and James W. Thacker
o "The ASTD Training and Development Handbook: A Guide to Human Resource Development" by Robert Craig
o "Human Resource Accounting: Advances in Concepts, Methods, and Applications" by Eric G. Flamholtz
o "Accounting for Human Resources: Rationale and Empirical Evidence" by Dipak Kumar Bhattacharyya
o "Managing Employee Turnover" by David G. Allen

Learning Activity
Instructions:
 Write the correct answer on the line or space provided.
 Spell all answers correctly.
 Capitalization and punctuation are not required unless specifically indicated.
 Each question is worth _____ points.

1. The overall process of identifying human resource needs, recruiting, selecting,

training, and developing employees

GRACE A. LLOBRERA-DIAMSE 83
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

2. A dynamic and pervasive function within an organization characterized by being all-

encompassing, a continuous process, people-centric, drawing on behavioral science, and
requiring collaboration.

3. The initial step in the staffing process that involves identifying, attracting, and
screening potential employees.

4. A method of staffing that fills vacancies from within the organization through
promotions, transfers, or employee referrals.

5. A method of staffing that sources candidates from outside the organization through job
boards, social media, and other external channels.

6. The process of choosing the most suitable candidate from a pool of applicants for a
specific job.

7. A comprehensive evaluation program involving multiple assessment methods used in

the selection process.

8. The systematic process of imparting knowledge, skills, and attitudes to employees to

enhance their performance.

9. A type of training that introduces new employees to the organization, its culture, and
job roles.

10. The process of determining the specific knowledge, skills, and abilities employees
require to improve their performance and achieve organizational goals.

11. A common type of training that improves basic reading, writing, and mathematical
skills.

GRACE A. LLOBRERA-DIAMSE 84
 EEPC 116 – MANAGEMENT OF ENGINEERING PROJECTS

12. A common type of training that focuses on teaching employees how to use specific
software applications.

13. A type of training that develops leadership skills, such as decision-making, problem-
solving, and strategic thinking.

14. A common type of training that teaches employees how to interact with customers
effectively.

15. A process of quantifying the value of an employee to an organization.

16. A challenge in human asset accounting due to the difficulty of assessing qualities like
creativity and innovation.

17. A method of human asset accounting that attempts to quantify the financial value of
employees based on factors like education and experience.

18. The transfer, promotion, demotion, or termination of employees within an

organization.

19. Advancing an employee to a higher position with increased responsibilities and usually
a higher salary.

20. Ending the employment relationship, either voluntarily (resignation) or involuntarily

(layoff, dismissal).

GRACE A. LLOBRERA-DIAMSE 85