Big picture
An organisation is only as good as its people. Staffing is the function of filling positions in the organisation structure, and keeping them filled, with competent and committed people. It covers everything from estimating how many people are needed to recruiting, selecting, training, appraising and paying them.
Staffing is a function of every manager (each one is responsible for the people under them), and in large organisations it is supported by a specialised human resource department. Exam questions typically ask you to identify a step, a source of recruitment, a selection test or a training method from a case.
Learning goals
Explain the meaning and importance of staffing and its link with human resource management.
Describe the steps in the staffing process.
Explain internal and external sources of recruitment, with merits and limitations.
Describe the steps of the selection process and the types of selection tests.
Distinguish training, development and education; explain the benefits of training.
Identify on-the-job and off-the-job training methods.
Core ideas
1. Importance of staffing
Obtains competent personnel for various jobs.
Improves performance, by putting the right person on the right job.
Ensures continuous survival and growth, through succession planning for managers.
Optimum utilisation of human resources, avoiding both over-manning and under-manning.
Improves job satisfaction and morale, through fair rewards and appraisal.
Human resource management (HRM) includes staffing plus related activities: job analysis, recruitment, developing compensation and incentive plans, training, maintaining labour relations, handling grievances, social security and welfare, and defending the company in lawsuits.
2. The staffing process
Estimating manpower requirements: how many people, of what kind, are needed. This uses workload analysis (the number and type of people needed for the planned work) and workforce analysis (the number and type of people available). The gap shows whether to recruit or reduce staff.
Recruitment: searching for prospective employees and stimulating them to apply. It is a positive process because it increases the number of applicants.
Selection: choosing the most suitable candidates from those who applied. It is a negative process because it rejects many applicants.
Placement and orientation: placement puts the selected person in the job for which they were selected; orientation (induction) introduces them to the organisation, colleagues, rules and policies.
Training and development: improving skills and preparing employees for growth.
Performance appraisal: evaluating an employee's current and past performance against set standards.
Promotion and career planning: moving employees to higher positions with more responsibility and pay, and planning their career growth.
Compensation: all forms of pay and rewards, both direct (wages, salaries, incentives) and indirect (paid leave, insurance, allowances).
3. Sources of recruitment
Internal sources fill vacancies from within the organisation.
Source | Meaning |
|---|---|
Transfers | Shifting an employee to another job, department or location, usually at the same level and pay |
Promotions | Moving an employee to a higher position with more responsibility, status and pay |
Merits of internal sources | Limitations of internal sources |
|---|---|
Employees are motivated by promotion prospects | Fresh talent from outside is not brought in |
Simpler and cheaper selection and placement | Employees may become lethargic if promotion is assured |
Transfer is a tool for training employees | Not suitable for a new organisation |
Transfer helps shift surplus staff to understaffed departments | Spirit of competition among employees may be hampered |
Filling jobs internally is cheaper | Frequent transfers may reduce productivity |
External sources bring people in from outside.
Source | Example |
|---|---|
Direct recruitment | A notice at the factory gate for casual workers |
Casual callers | Unsolicited applications kept on file |
Advertisement | Job ads in newspapers or online for specialised posts |
Employment exchange | Government-run offices that register job seekers |
Placement agencies and management consultants | Agencies that screen candidates, often for technical and senior posts |
Campus recruitment | Recruiting from colleges and institutes |
Recommendations of employees | Existing employees refer friends and relatives |
Labour contractors | Contractors supply unskilled workers |
Web publishing | Job portals where employers and job seekers post details |
Merits of external sources | Limitations of external sources |
|---|---|
Qualified personnel and fresh talent | Existing staff may be dissatisfied as their promotion chances fall |
Wider choice of candidates | Lengthy process |
Competitive spirit among existing staff | Costly (advertising, tests, agencies) |
Uncertain response; the right candidates may not apply |
4. The selection process
Preliminary screening: eliminates unqualified candidates from application forms and short interviews.
Selection tests: measure specific characteristics.
Employment interview: an in-depth conversation to assess suitability and give the candidate information about the job.
Reference and background checks: verifying information with previous employers, referees and others.
Selection decision: the final choice from those who passed the tests, interviews and checks; the manager of the post usually has the final say.
Medical examination: to check physical fitness for the job.
Job offer: a letter of appointment with the date of joining.
Contract of employment: a written contract stating terms such as job title, duties, pay, leave, hours and termination.
Types of selection tests
Test | Measures | Example |
|---|---|---|
Intelligence test | Level of intelligence (IQ); ability to make decisions and adjust | Reasoning and problem-solving questions |
Aptitude test | Potential to learn new skills | Testing a candidate's aptitude for programming before training |
Personality test | Emotions, maturity, value system | Questionnaires on how one reacts in situations |
Trade test | Existing skills and proficiency | Asking a typist to type a passage, or a mechanic to repair an engine |
Interest test | Pattern of interests | Finding whether a candidate prefers outdoor or desk work |
5. Training and development
Term | Meaning |
|---|---|
Training | Increasing an employee's knowledge and skills for a specific job |
Development | Overall growth of the employee, preparing them for future, higher roles |
Education | Increasing general knowledge and understanding of the environment, usually in schools and colleges |
Basis | Training | Development |
|---|---|---|
Aim | Improve skills for the present job | Overall growth for future roles |
Nature | Job-oriented | Career-oriented |
Scope | Narrow | Wide |
Benefits to the organisation: less wastage of effort and money (systematic learning), higher productivity, preparation of future managers, lower absenteeism and turnover, and quicker response to technological change.
Benefits to employees: better career opportunities, higher earnings through better performance, fewer accidents through better handling of machines, and higher satisfaction and morale.
6. Methods of training
On-the-job methods (learning while doing the actual job)
Method | Meaning |
|---|---|
Apprenticeship training | A trainee works under the guidance of a master worker for a long period; common in trades such as plumbing and electrical work |
Coaching | A superior guides and instructs the trainee as a coach |
Internship training | A joint programme between educational institutions and businesses, where students get practical work experience |
Job rotation | Shifting the trainee from one department to another to broaden experience |
Off-the-job methods (learning away from the workplace)
Method | Meaning |
|---|---|
Classroom lectures and conferences | Lectures for conveying specific information, rules and procedures |
Films | Show situations and procedures visually |
Case study | Trainees analyse real business situations and propose solutions |
Computer modelling | Simulates the work environment on a computer |
Vestibule training | Employees learn on actual equipment set up away from the work floor, so mistakes don't disrupt production; used where sophisticated machines are involved |
Programmed instruction | Learning in small steps with immediate feedback, at the learner's own pace |
A reliable approach to case-based questions
If the case talks of "how many people we need versus how many we have", it is estimating manpower requirements (workload and workforce analysis).
Vacancy filled by moving an existing employee: internal source. Note whether the move is upward (promotion) or sideways (transfer).
Testing current skills: trade test; potential to learn: aptitude test.
Training on real machines in a separate room: vestibule training; under a master worker for years: apprenticeship; moving across departments: job rotation.
Introducing a new joiner to colleagues and rules: orientation.
Connections that matter
Organising creates the positions that staffing fills.
Directing motivates and leads the people that staffing brings in.
Controlling uses performance appraisal to compare actual and standard performance.
Common mistakes
Calling recruitment a negative process. Recruitment is positive (it attracts applicants); selection is negative (it rejects them).
Confusing aptitude and trade tests.
Classifying vestibule training as on-the-job. It is off-the-job, though it uses real equipment.
Treating training and development as the same.
Writing that staffing is only the HR department's job. Every manager performs staffing.
Revision checklist
I can explain the importance of staffing and its link with HRM.
I can list and explain the eight steps of the staffing process.
I can explain internal and external sources of recruitment with merits and limitations.
I can list the steps of selection and the five types of tests.
I can distinguish training, development and education and state the benefits of training.
I can identify on-the-job and off-the-job training methods.