Mekelle University

College of Business and Economics

School of Management
Department of Management

Chapter Five
Staffing
Overview
Concept of Staffing: (Definition, & Need/significance of Staffing)
Staffing Processes (Human resource Functions):
Procurement Function:
 Human resource planning/Manpower planning
 Recruitment
 Selection
 Placement and Induction (socialization)
Training & Development:
 Training and development
Maintenance &Utilization:
 Performance appraisal
Compensation and fringe benefits
Transfer [Promotion, Demotion, Lateral transfer)
Separation:
• Retirement, Layoff, Discharge, Dismissal, Resignation, Death or
disability…..etc
Definition:
 Staffing is defined as filling and keeping filled positions in an
organizational structure.
 Staffing is the process of finding the right person with appropriate
qualification and experience and recruiting them to fill a job position in
organization.
 Staffing is the process of hiring and developing required personnel to
jobs in an organization. ……HRM……

Need of Staffing
 Finding the right talent/skills-
 Enhances productivity & performance- (optimal utilization of resources)
 Developing human capital- (continuous learning that enhances potentials
of employees)
 Increase employee satisfaction-
 Reduces turn over/Retention-
 Adapting to changes- via training and development……etc
Staffing processes:
The staffing process represents the following important
activities:
1) Human Resource Planning /Manpower planning/:
• It is the process of determining the need of the provision of
adequate human resources in short & long term to a job.
• It is a crucial process for organizations to ensure they have
the right people with the right skills at the right time to
achieve their strategic goals.
It is accomplished through analysis of:
(i) Internal factors - such as current and expected skill needs,
vacancies, and departmental expansions and reductions; and
(ii) External environmental - factors such as the labor market,
the government regulation, the labor union; etc
There are basic steps in human resource planning:
 Analyzing organizational objectives
 Identify current organizational availability
 Forecast future HR requirements (needs)-
(Demand and supply aspects of HRM)
 Identifying gap- (Determining net new personnel
requirements)
 Develop HR strategies (action plan)
 Implementation of HR plans
 Monitoring and evaluation

The central elements in human resource planning are

forecasting and the human resource audit.
2. Recruitment:
• It is the process of reaching out and attempting to attract
potential candidates who are capable of and interested in
filling available positions of an organization.
Sources of Recruitment:
• Sources of supply are the places, agencies, and institutions to
which recruiters go to seek potential candidates that will fill
the vacant positions or the job needed.
These sources of supply are generally categorized in to two:
(i) Internal Recruitment:
This involves recruitment within the organization; it could be
via promotion, lateral transfer, demotion or any other form.
Advantages:
• It is usually less expensive to recruit or promote
• It may faster loyalty and inspire greater effort among members.
• Need less initial training and orientation.
Disadvantages:
• It limits the pool of talent available to the organization.
(ii) External /outside/ recruitment: It involves recruitment outside
an organization.
The major alternative sources could be:
 Direct application
 Employee referrals /word of mouth/
 Advertising
 Educational institutions
 Private/public employment agency
 Other sources such as professional associations……etc
3. Selection:
• It can be defined as the process of determining from among
applicants which one fills best for the job description and
specification which is offered to the job within the
organization.
4) Orientation and socialization /induction/
• Orientation or induction is the process of introducing different
aspects of an organisation: (its policies, rules, regulations and
job roles to the new hires…….)
• It is designed to provide a new employee with an information
he/she needs in order to function comfortably and effectively
in an organization.
• It is aimed at giving new employees an overview of the
organisation and their specific job roles.
5. Training and Development:
Organizing human resources is a dynamic activity. Job demands
change, which requires altering and updating an employee's skills.
• Training - is a process designed to maintain or improve current
job performance. It is usually short term & specific.
• Development - is a process designed to develop skills
necessary for future work activities. It has a broader & long
term focus.
Reasons for Training:
 To orient new employees
 To be able to adapt changes
 To improve performance- (reduce errors, wastages of resources)
 To increase job satisfaction and support organizational
goals……etc
Training Methods:
There are two different types of training techniques:
a. On-the-job training: involves learning methods and techniques
by actually doing a job (performing the work).
The employee usually learns under the supervision of the immediate
boss or co-worker who has greater knowledge and skills about the job
& it is also widely used method.
Advantages
 No special facilities, equipment and training places are required
 It is economical and convenient; and
 It is convenient for small number of trainees……etc
Disadvantages
 It creates disinterest of employees,
 Employees have dual responsibility, &
 It is not convenient for large number of employees……etc
b. Off-the-job training: This technique involves participation
of employees in a series of events removed from the actual
performance of the organization and the work situation.
Advantages:
 It creates interest of employees
 It is convenient for large number of trainees.
Disadvantages:
 It is expensive- there are costs for trainers, facilities, and also
the employee does not contribute during the training.
 There is a problem of transfer of knowledge from the training
situation to the actual situation of the job.
6. Compensation and fringe benefits-
 Compensation- is adequate and equitable remuneration of
personnel for their contributions to the achievement of
organizational objectives.
It is the direct payment employees receive for their work, such
as: salaries, wages, bonuses and commissions.
 Fringe benefits- are extra benefits given to an employee in
addition to salary or wage. Non-wage benefits.
They may include: health insurance, retirement plans, paid
time off, employee discounts, and other benefits.

These benefits help attract and retain talent, enhance employee

satisfaction and contribute to overall employee well-being.
7) Performance Appraisal: is the process used to determine
whether an employee is performing according to what is
designed or intended.
• Appraisals are used as a vehicle for bringing about employee
development because the results of the performance
evaluation can serve as a basis for coaching and counseling.
8) Transfer: is a shift of a person from one job, organization
level, or location to another.
Transfer could be:
a. Promotion/up-ward mobility: refers to a shift for
advancement of an employee to a higher job with more
employment and prestige, higher status, and higher
responsibility.
(It is important that promotions be fair i.e., based on merit and
free from favoritism).
b. Demotion/dawn-ward mobility: refers to a shift of an
employee to a lower position in the hierarchy due to
inefficiency, and incompetence to fulfill assigned tasks.
c. Lateral transfer/horizontal mobility: refers to the
movement of an employee from one job or position to another
without involving any significant change in the employment and
status.
9. Separation/exit - refers to those factors that bring the
termination or ceasing of the relationship between the
organization and the employee.
Separation can be temporary or permanent voluntary or
involuntary initiated by the employer or employee.
Separation may result from such factors as:
 Retirement- When an employee chooses to leave their job
permanently, often due to completing service years.
 Layoff - When an employer terminates an employee's employment
for economic reasons, such as financial difficulties or
restructuring.
 Discharge (Termination) - this is permanent removal of an
employee due to unsatisfactory performance, misconduct, or
violation of company policy. (performance & behavioral bases)
 Dismissal- is similar with discharge but it is often more immediate
& for several reasons gross misconduct or fraud.
 Resignation- this happens when an employee voluntarily leaves an
organization, often for better opportunities, personal reasons, or
dissatisfaction.
 Death or disability- when an employee leaves due to unforeseen
circumstances like death or sever disability that prevents them
from working.
Thank you