Staffing Process

PROF. KARISHMA SHETTY

MEANING OF STAFFING
• Staffing refers to manpower/human resource required for the
execution of a business plan.
• Like planning and organising staffing is one basic function of
management and occupies a key position in the management process.
•Staffing is the process of filling all positions/ posts in the organisation
with adequate and qualified personnel.
•"Right man for the right job" is the basic principle in staffing.
• Staffing function is comprehensive and involves manpower planning,
(HRP) recruitment, selection training, compensation, integration and
maintenance of employees, Human Resource Planning and Human
Resource.

DEFINITION OF
STAFFING
“Staffing is the function by which managers build an
organization through the recruitment ,selection and
development of individuals as capable employees.”
– McFarland .

FEATURES OF
STAFFING

• Universal Management Function
• All Pervasive Function Of Management
• Dynamic Function
• Vast Scope
• Contributes To Achieving Organizational
Objectives

NEED AND
IMPORTANCE
OF STAFFING:

Staffing helps in discovering and obtaining competent talented
manpower/human resources for various jobs available in the organisation.
Staffing ensures best performance from employees by placing right persons
on the right jobs. This gives the benefit of higher productivity, greater
production and reduction in labour cost to the organisation.
Staffing facilitates optimum utilisation of human resources available within
the organisation through proper placement, training and manpower
development programmes. It avoids under-utilisation of personnel which
leads to rise in labour cost and reduction in profit margins.
Staffing improves job satisfaction and employee morale through objective
performance assessment and provision of fair compensation to employees.

• Staffing brings growth and prosperity to an organisation through the
manpower development programmes. Managers are trained as per the future
organisational needs. This ensures availability of managers as per organisational
needs. Staffing ensures the continuity and growth of the organisation.
• Staffing helps in discovering talented and competent employees for
developing them to move to responsible higher positions. It enables an
organisation to meet its future manpower needs as per the expansion
programmes, diversification of business operations and so on.
• Proper staffing helps to avoid a sudden disruption in the production
programmes of a company by indicating possible shortages of personnel, if any,
in advance. It also provides information about internal succession of managerial
personnel which can be used in the normal course or in the event of sudden or
unexpected turnover at the top level management.

FACTORS AFFECTING
STAFFING
Staffing function is affected by different factors as explained
in the next slides:

EXTERNAL FACTORS
AFFECTING STAFFING
1. NATURE OF COMPETITION FOR
HUMAN RESOURCES
2. LEGAL FACTORS
3. SOCIO-CULTURAL FACTORS
4. EXTERNAL INFLUENCES

INTERNAL FACTORS
AFFECTING STAFFING
1. ORGANIZATIONAL IMAGE
2. PAST PRACTICES
3. SIZE OF THE ORGANIZATION
4. ORGANIZATIONAL BUSINESS PLAN

BENEFITS/ADVANTAGES
OF STAFFING FUNCTION:

• Staffing function helps in discovering and obtaining competent
manpower/human resource for various jobs available in the
organisation.
• It ensures best performance from employees by placing right persons
on the right jobs.
• It facilitates optimum utilization of human resources available within the
organisation through proper placement, training and manpower
development programmes. It also minimises costs of manpower.
• Staffing function improves job satisfaction and employee morale
through objective performance assessment and provision of fair
compensation to employees.

• Staffing function brings growth and prosperity to an organisation through the
manpower development programmes. Managers are trained as per the future
organisational needs. This ensures availability of managers as per organisational
needs. It also avoids sudden disruption in the normal functioning of an
organisation.
• Staffing function enables an organisation to meet its future manpower needs
as per the expansion programmes, diversification of business operations and so
on. It enables an organisation to cope with the shortage of executive talent.
• Staffing converts plans into positive results easily. It acts as a key to other
managerial functions. Staffing is also useful in designing a sound organisation.

MEANING OF RECRUITMENT
Every organisation needs to look after recruitment and selection in the
initial period and thereafter as and when additional manpower is
required due to expansion and development of business activities.
Recruitment means to estimate the number of employees required and
to make suitable arrangements for their selection and appointment.
Recruitment process begins after the manpower requirements are
determined. It is the process of identifying the sources of potential
employees and encouraging them to apply for jobs in the organisation.
This facilitates selection of most suitable candidates for the jobs
available in the organisation.

DEFINITON OF RECRUITMENT
According to Edwin Flippo,
"Recruitment is the process of searching for
prospective employees and stimulating them
to apply for jobs in the organisation."

SOURCES OF
RECRUITMENT
Sources of recruitment are the agencies through which suitable candidates are available.
The sources of recruitment can be divided into two broad categories.
These are:
(1) Internal
&
(2) External.

INTERNAL SOURCES OF
MANAGERIAL RECRUITMENT
1. PROMOTIONS
2. TRANSFERS
3. INTERNAL NOTIFICATION (ADVERTISEMENT)
4. RETIREES
5. RECALLS
6. FORMER EMPLOYEES

ADVANTAGES OF INTERNAL SOURCES
OF MANAGERIAL RECRUITMENT
1. Internal recruitment is economical.
2. The present employees already know the company well and are likely to
develop a loyalty for the same.
3. It tends to encourage employees to put in greater efforts and to acquire
additional qualifications.
4. It provides security and continuity of employment.
5. Internal recruitment helps to raise the morale of employees and develops
cordial relations at the managerial levels.
6. It reduces labour turnover as capable existing employees get promotions
within the organisation.
7. Internal recruitment is a quick and more reliable method.

LIMITATIONS OF INTERNAL SOURCES
OF MANAGERIAL RECRUITMENT
• Internal promotions to higher posts create a feeling of discontent and
anger among those who are not promoted.
• It prevents the entry of young blood in the organisation.
• Internal promotions to certain key posts may not be possible due to
non-availability of competent persons. In brief, internal sources should be
used but complete dependence on internal sources is neither possible nor
desirable in any organisation. Along with internal sources, external
sources should be used for filling vacancies at the managerial level.

EXTERNAL SOURCES OF
MANAGERIAL RECRUITMENT
1. CAMPUS RECRUITMENT
2. PRESS ADVERTISEMENT
3. MANAGEMENT CONSULATANCY SERVICES & PRIVATE
EMPLOYMENT EXCHANGES
4. DEPUTATION OF PERSONNEL OR TRANSFER FROM ONE
ENTERPRISE TO ANOTHER
5. CASUAL CALLERS
6. WALK-INS, WRITE-INS AND TALK INS.
7. WEBSITES
8. MISCELLANEOUS SERVICES

(8) Miscellaneous External Sources:
(A) Giving extension to existing executives after reaching the
age of retirement.
(B) Appointment of retired officers from civil service or from
public sector organisations.
(C) Use of professional meetings and conventions for the
selection of executives.
(D) Use of executive placement agencies.
(E) Assistance from professional associations.

ADVANTAGES OF EXTERNAL
SOURCES OF RECRUITMENT:
1. Entry of young blood is possible.
2. Wide scope for selection is available.
3. Selection can be made in an impartial manner as large
number of qualified and interested candidates are available.
4. Scope for jealousy among the internal staff can be avoided
by recruiting from outside.
5. The management can fulfil reservation requirements in
favour of the disadvantaged sections of the society.

DISADVANTAGES OF EXTERNAL
SOURCES OF RECRUITMENT:
1. External sources are costly and time consuming.
2. Too much importance to external sources may lead to dissatisfaction
among the existing staff and this may lead to high percentage of
turnover.
3. There is also a problem of adjustment in between the internal staff
and a newly appointed manager from outside, The best policy is to
give more importance to internal sources and use external sources as
and when absolutely essential in the interest of the organisation.

SOURCES OF
MANAGERIAL
RECRUITMENT
INTERNAL
SOURCES
PROMOTERS TRANSFERS
INTERNAL
NOTIFICATION
(ADVERSTISEMENT)
RETIREES
RECALLS
FORMER
EMPLOYEES
EXTERNAL
SOURCES
CAMPUS
RECRUITMENT
PRESS
ADVERTISEMENT
MANAGEMENT CONSULATANCY
SERVICES & PRIVATE
EMPLOYMENT EXCHANGES
DEPUTATION OF PERSONNEL OR
TRANSFER FROM ONE
ENTERPRISE TO ANOTHER
CASUAL CALLERS WALK-INS, WRITE-INS AND
TALK INS.
WEBSITES
MISCELLANEOUS
SERVICES

SELECTION

1. Recruitment procedure is followed by selection procedure in which the best candidate
is selected and the others (unsuitable candidates) are rejected.
2. For the selection of most suitable candidates, written test, psychological tests, personal
interview and medical examination are taken.
3. Tests are the tools used for the selection of suitable candidates.
4. Selection is a negative process as it is a process of elimination of unfits / unsuitable
candidates.
5. "Right man for the right job" is the basic principle in selection
6. Selection is an important staffing function and must be performed carefully. If
unsuitable persons are selected, labor turnover and absenteeism will be high.
7. The efficiency of the organization will go down. Errors in selection may prove costly in
future.
8. Proper selection, on the other hand, is useful in building up a suitable workforce.
9. This will lead to increase in the productivity and efficiency of labor force. In order to
achieve this objective, a well-organized selection procedure is required.

STEPS/ STAGES IN
SELECTON
PROCEDURES/PROCESS

EMPLOYEE REQUISITION
RECRUITMENT
COLLECTION OF APPLICATION/ APPLICATION BANKS
SCRUTINY OF APPLICATION
TRADE/WRITTEN TEST
PSYCHOLOGICAL TESTS
PERSONAL INTERVIEW
REFERENCE CHECK
MEDICAL EXAMINATION
FINAL SELECTION FOR APPOINTMENT
SCREENING
DEVICES
R
E
J
E
C
T
S

IMPORTANCE
OF
SCIENTIFIC SELECTION

 Facilitates right man for the right job
 Reduces labor turnover and absenteeism
 Raises overall efficiency
 Reduces the need for training and supervision
 Reduces wastages due to misuse and
accidents
 Raises employee morale
 Facilitates proper placement
 Benefits employees

BENEFITS
TO THE
EMPLOYEES

 The benefits of "right man for the right job" will be available due to lengthy and scientific
selection procedure.
 Overall efficiency of the organization will improve and the organizational objectives will be
achieved to a considerable extent with ease due to lengthy and scientific selection procedure
in the case of managerial staff.
 Better team spirit, better motivation of employees and raising of morale of subordinates will be
possible due to scientific and lengthy selection procedure.
 An organization will have a team of capable, motivated and devoted managers. Such team is
an important asset as it can bring stability and prosperity to the enterprise. This indicates the
importance lengthy selection procedure.
 Manpower development programmes become more effective and result-oriented when most
suitable managers are selected through lengthy and scientific selection procedure.
 Selection of unsuitable candidates means inviting new problems and new liabilities in the long
run. This can be avoided through lengthy and scientific selection procedure. (For more details,
please refer "Importance of Scientific Selection Policy" in this chapter.)

BENEFITS
OF SELECTION
PROCEDURE

1. The benefits of "right man for the right job" will be available due to lengthy and scientific
selection procedure.
2. Overall efficiency of the organization will improve and the organisational objectives will be
achieved to a considerable extent with ease due to lengthy and scientific selection
procedure in the case of managerial staff.
3. Better team spirit, better motivation of employees and raising of morale of subordinates will
be possible due to scientific and lengthy selection procedure.
4. An organisation will have a team of capable, motivated and devoted managers. Such team
is an important asset as it can bring stability and prosperity to the enterprise. This indicates
the importance lengthy selection procedure.
5. Manpower development programmes become more effective and result-oriented when
most suitable managers are selected through lengthy and scientific selection procedure.
6. Selection of unsuitable candidates means inviting new problems and new liabilities in the
long run. This can be avoided through lengthy and scientific selection procedure.

DIFFERENCE
BETWEEN
RECRUITMENT
AND SELECTION

CONTENT RECRUITMENT SELECTION
Meaning Recruitment is the process of searching for
prospective candidates and stimulating
them to apply for the job in the
organization. It is a staff function.
Selection is a process of choosing most suitable
candidates out of those who are interested and
also qualified for the job. It is a line function.
Length of process Recruitment is a short process as in
recruitment publicity is given to vacancies
and information about candidates
(applications) is collected from different
sources of recruitment.
Selection is a lengthy process as it involves a
scrutiny of applications, giving tests to
candidates, arranging interviews and medical
examination.
Purpose To attract maximum number of suitable
and interested candidates through
applications.
To select the best candidate out of those
qualified and interested in the appointments.
Nature of Function Recruitment is a positive function in which
interested candidates are encouraged to
submit applications.
Selection is a negative function in which
unsuitable candidates are eliminated and the
best one is selected and appointed.
Cost Involved Recruitment is not a costly activity as
expenditure is required mainly for
advertising the posts.
Selection is a costly activity as expenditure is
needed for the services of experts, testing of
candidates and conduct of interviews. The
candidates are also paid TA for attending
interview

EMPLOYMENT
TESTS AND TYPES
OF INTERVIEWS

Most of the large companies in India use one or other kind of employment tests.
Smaller companies place greater reliance on interviewing.
The companies using employment tests only rely on standardized rather than tailor-made tests.
Selection or employment tests have become an important device in the process of selection.
They are used to measure the skills, abilities and suitability of candidates for the posts in an
organization.
These tests are given to candidates selected through scrutiny of their applications.
Candidates showing satisfactory performance in the employment tests are called for personal
interview.
This suggests the importance of employment tests.
Such tests are now common in the case of employment in banks, government departments,
insurance companies, financial institutions and so on.
Several types of tests are used for purposeful screening of candidates.
Written tests given to candidates may be objective or descriptive in nature.
Large companies in India use one or the other type of employment/selection tests for selection of
candidates for managerial posts.
Smaller companies place greater reliance on interviewing.
The companies using employment tests mainly rely on standardized rather than tailor-made tests.

TESTS USED IN
SELECTION TOOLS/
TYPES OF
EMPLOYMENT TEST

1. Personality Test:
It is designed to measure such personality characteristics as: (a) emotional stability (b) capacity to get
along (c) tolerance for conflict (d) maturity (e) inter personal skills. This test is of great importance where
the candidate has to perform outdoor assignments.
2. Intelligence Test:
This test is designed to eliminate candidates who are insufficiently intelligent for efficient job
performance. This test measures individual's capacity for (a) reasoning, (b) vocabulary, (c) word fluency,
(d) verbal comprehension, (e) numbers, (f) memory, (g) presence of mind, and (h) mental ability.
3. Performance Test:
This test attempts to find out: (a) calibre (b) knowledge (c) proficiency (d) skill and (e) competence which
will make the candidate successful on the job. Aptitude Test: This test determines capacity of an
individual or his ability to learn a job, when he is given adequate training. Some people have an aptitude
for table and chair job whereas some other prefer public relations job.
4. Aptitude Test:
This test determines capacity of an individual or his ability to learn a job, when he is given adequate
training. Some people have an aptitude for table and chair job whereas some other prefer public
relations job.

5. Achievement Test :
This test is used to ascertain whether the individual actually knows what he claims to
know. Trade test is the most common type of achievement test. It is designed to
measure knowledge or skill in a specific trade.
6. Analytical Test :
A job is first analyzed in terms of such qualities as speed, observation, dexterity etc.
Terms are then worked out to measure the degree to which a candidate possesses
these qualities.
7. Synthetic Test :
The candidate is presented a complex situation, more or less similar to the one he will
have to face in his job. He is called upon to handle the situation. Candidates for
managerial positions generally face this type of test.
8. Interest Test :
This test is used to determine whether candidate is interested in a particular job or not.
It finds out likes and dislikes of a candidate including his hobbies.

ADVANTAGES
OF TESTS:

1. Objective comparison between candidates is made possible.
2. Incompetent candidates are eliminated.
3. Suitable candidates are given proper placement.
4. Right man to the right job is achieved.
5. Achievements of the candidates are verified.
6. Compatibility of the candidate can be found out.
7. Mental qualities of candidates are evaluated.
8. Overall ability of the candidates are measured.
9. Application of knowledge is found out.
10. Accuracy in selecting employees

INTERVIEW

Some employers feel there is no substitute for face to face meeting. They insist on
organizing interview as an integral part of selection procedure. It is used extensively for
judging the candidates in an objective manner. The final selection is partly based on the
performance of the candidates in different tests and partly on his performance in the final
personal interview.
The candidate's overall personality is judged in the interview. Various questions are
asked to the candidate in order to judge his ability, aptitude, knowledge, etc.
During the conduct of interviews both the employers and the candidates can learn a lot
about themselves. Although it is expected that interviews are conducted smoothly but
many problems may crop up. Sometimes interviewers can ask wrong questions, at times
they talk too much, unqualified persons may conduct interviews and personal bias of
interviewers can play havoc on the candidates. On the part of the candidates, they may
be unprepared, they may be poor communicators and they may lack interpersonal skills.
However interview has remained as the most important part of selection procedure.

IMPORTANCE/ROLE OF
INTERVIEW IN THE
SELECTION PROCEDURE

1. Full view of candidate
2. Accurate judgement of candidate
3. Base of final selection
4. Facilitates two-way communication
5. Provides additional information to candidates
6. Facilitates the use of collective wisdom of
experts/interviewers

7. Miscellaneous Benefits:
(a) Facilitates appropriate training programme for selected candidates as per the
information collected from candidates. For example, deficiencies noted about
selected candidates can be removed by providing suitable training
(b) Facilitates proper placement of selected candidates as per their education, skills
and experience.
(c) Personal interview facilitates cross-checking of information supplied by
candidate on the application blank.
(d) Candidate can take decision on job offer promptly after the personal interview
as he gets full information about the job, the company, etc. in the interview.

TYPES OF
INTERVIEW

1. Informal Interview
2. Formal Interview
3. Structured Interview
4. Unstructured Interview
5. Panel Interview
6. Group Interview
7. Stress Interview
8. In-depth Interview
9. Individual Interview
10. Non-directive Interview
11. Exit Interview

Staffing Process

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