ASSIGNMENT

Principles of Management

Submitted By: Capt® Waleed Akhtar

Submitted To: Dr. Shameel Ahmed Zubairi

Seat Number: EP-19543179

Class: MBA SCM 2.5 3rd Semester

Department: KUBS
 Staffing as a Management Function

Objective:
After studying this chapter you will be able to:
 Explain the meaning of staffing.

 Discuss the meaning and importance of recruitment, selection, training and development is staffing.

 Explain the concept of performance appraisal.

Introduction:
Staffing is the process of hiring eligible candidates in the organization or company for specific
positions. In management, the meaning of staffing is an operation of recruiting the employees by
evaluating their skills, knowledge and then offering them specific job roles accordingly. Let us
find out more about what is Staffing and what it entails along with its functions and
characteristics.

After an organization's structural design is in place, it needs people with the right skills,
knowledge, and abilities to fill in that structure. People are an organization's most important
resource, because people either create or undermine an organization's reputation for quality in
both products and service.
In addition, an organization must respond to change effectively in order to remain competitive.
The right staff can carry an organization through a period of change and ensure its future
success. Because of the importance of hiring and maintaining a committed and competent staff,
effective human resource management is crucial to the success of all organizations.
Human resource management (HRM), or staffing, is the management function devoted to
acquiring, training, appraising, and compensating employees. In effect, all managers are human
resource managers, although human resource specialists may perform some of these activities in
large organizations. Solid HRM practices can mold a company's workforce into a motivated and
committed team capable of managing change effectively and achieving the organizational
objectives.
Understanding the fundamentals of HRM can help any manager lead more effectively. Every
manager should understand the following three principles:

All managers are human resource managers.

Employees are much more important assets than buildings or equipment; good employees give a
company the competitive edge.
Human resource management is a matching process; it must match the needs of the organization
with the needs of the employee.
What is Staffing?
Definition: Staffing can be defined as one of the most important functions of management. It
involves the process of filling the vacant position of the right personnel at the right job, at right
time. Hence, everything will occur in the right manner.

It is a truth that human resource is one of the greatest for every organization because in any
organization all other resources like- money, material, machine etc. can be utilized effectively
and efficiently by the positive efforts of human resource.

Therefore it is very important that each and every person should get right position in the
organization so as to get the right job, according to their ability, talent, aptitude, and
specializations so that it will help the organization to achieve the pre-set goals in the proper way
by the 100% contribution of manpower. Thus it can be said that it is staffing is an essential
function of every business organization. From this, we can understand what is Staffing?

Functions of Staffing
1. The first and foremost function of staffing is to obtain qualified personnel for different
jobs position in the organization.
2. In staffing, the right person is recruited for the right jobs, therefore it leads to maximum
productivity and higher performance.
3. It helps in promoting the optimum utilization of human resource through various aspects.
4. Job satisfaction and morale of the workers increases through the recruitment of the right
person.
5. Staffing helps to ensure better utilization of human resources.
6. It ensures the continuity and growth of the organization, through development managers.

Importance of Staffing

Efficient Performance of Other Functions

For the efficient performance of other functions of management, staffing is its key. Since, if an
organization does not have the competent personnel, then it cannot perform the functions of
management like planning, organizing and control functions properly.
Effective Use of Technology and Other Resources
What is staffing and technology’s connection? Well, it is the human factor that is instrumental in
the effective utilization of the latest technology, capital, material, etc. the management can
ensure the right kinds of personnel by performing the staffing function.

Optimum Utilization of Human Resources

The wage bill of big concerns is quite high. Also, a huge amount is spent on recruitment,
selection, training, and development of employees. To get the optimum output, the staffing
function should be performed in an efficient manner.

Development of Human Capital

Another function of staffing is concerned with human capital requirements. Since the
management is required to determine in advance the manpower requirements. Therefore, it has
also to train and develop the existing personnel for career advancement. This will meet the
requirements of the company in the future.

The Motivation of Human Resources

In an organization, the behavior of individuals is influenced by various factors which are
involved such as education level, needs, socio-cultural factors, etc. Therefore, the human aspects
of the organization have become very important and so that the workers can also be motivated by
financial and non-financial incentives in order to perform their functions properly in achieving
the objectives.

Building Higher Morale

The right type of climate should be created for the workers to contribute to the achievement of
the organizational objectives. Therefore, by performing the staffing function effectively and
efficiently, the management is able to describe the significance and importance which it attaches
to the personnel working in the enterprise.

Characteristics of Staffing

People-Centered
Staffing can broadly view as people-centered function and therefore it is relevant for all types of
organization. It is concerned with categories of personnel from top to bottom of the organization.

Blue collar workers (i.e., those working on the machines and engaged in loading, unloading etc.)
and white collar workers (i.e., clerical employees).
Managerial and Non Managerial personal.
Professionals (Ex. - Chartered Accountant, Company Secretary)
Responsibility of Manager
Staffing is the basic function of management which involves that the manager is continuously
engaged in performing the staffing function. They are actively associated with the recruitment,
selection, training, and appraisal of his subordinates. Therefore the activities are performed by
the chief executive, departmental managers and foremen in relation to their subordinates.

Human Skills
Staffing function is mainly concerned with different types of training and development of human
resource and therefore the managers should use human relation skill in providing guidance and
training to the subordinates. If the staffing function is performed properly, then the human
relations in the organization will be cordial and mutually performed in an organized manner.

Continuous Function
Staffing function is to be performed continuously which is equally important for a new and well-
established organization. Since in a newly established organization, there has to be recruitment,
selection, and training of personnel. As we compare that, the organization which is already a
running organization, then at that place every manager is engaged in various staffing activities.

Therefore, he is responsible for managing all the workers in order to get work done for the
accomplishment of the overall objectives of an organization.

Nature of Staffing Function

Staffing is an important managerial function- Staffing function is the most important managerial
act along with planning, organizing, directing and controlling. The operations of these four
functions depend upon the manpower which is available through staffing function.
Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all
types of concerns where business activities are carried out.
Staffing is a continuous activity- This is because staffing function continues throughout the life
of an organization due to the transfers and promotions that take place.
The basis of staffing function is efficient management of personnel’s- Human resources can be
efficiently managed by a system or proper procedure, that is, recruitment, selection, placement,
training and development, providing remuneration, etc.
Staffing helps in placing right men at the right job. It can be done effectively through proper
recruitment procedures and then finally selecting the most suitable candidate as per the job
requirements.
Staffing is performed by all managers depending upon the nature of business, size of the
company, qualifications and skills of managers, etc. In small companies, the top management
generally performs this function. In medium and small scale enterprise, it is performed especially
by the personnel department of that concern.

Staffing Process - Steps involved in Staffing

Manpower requirements-
His very first step in staffing is to plan the manpower inventory required by a concern in order to
match them with the job requirements and demands. Therefore, it involves forecasting and
determining the future manpower needs of the concern.
Recruitment
Once the requirements are notified, the concern invites and solicits applications according to the
invitations made to the desirable candidates.

Selection
This is the screening step of staffing in which the solicited applications are screened out and
suitable candidates are appointed as per the requirements.
Orientation and Placement
Once screening takes place, the appointed candidates are made familiar to the work units and
work environment through the orientation programmers. Placement takes place by putting right
man on the right job.
Training and Development
Training is a part of incentives given to the workers in order to develop and grow them within
the concern. Training is generally given according to the nature of activities and scope of
expansion in it. Along with it, the workers are developed by providing them extra benefits of in-
depth knowledge of their functional areas. Development also includes giving them key and
important jobs as a test or examination in order to analyze their performances.
Remuneration
It is a kind of compensation provided monetarily to the employees for their work performances.
This is given according to the nature of job- skilled or unskilled, physical or mental, etc.
Remuneration forms an important monetary incentive for the employees.
Performance Evaluation
In order to keep a track or record of the behavior, attitudes as well as opinions of the workers
towards their jobs. For this regular assessment is done to evaluate and supervise different work
units in a concern. It is basically concerning to know the development cycle and growth patterns
of the employees in a concern.
Promotion and transfer
Promotion is said to be a non- monetary incentive in which the worker is shifted from a higher
job demanding bigger responsibilities as well as shifting the workers and transferring them to
different work units and branches of the same organization.

Methods and sources of recruitment:

According to ‘Dunn and Stephens’ recruitment methods can be classified
Into three categories:
1) Direct Methods
2) Indirect Methods
3) Third Party Methods
1) Direct Methods include travelling visitors to educational and professional Institutions,
employee’s contacts with public and manned exhibits and waiting
2) Indirect Methods include advertising in newspaper radio, in trade and Professional journals,
technical journals, brochures etc.
3) Third Party Methods includes the use of commercial and private employment Agencies, state
agencies, placement offices of the colleges and universities, and Professional association
recruiting firms.

Sources of Recruitment
The various sources of recruitment may be classified as
 1. Internal sources or from within the organization.
2. External sources or recruitment from outside.

Internal sources
Many organization’s in India give preference to people within the company because the best
employees can be found from within the Organization itself. Under this policy, if there is any
vacancy the persons already working in the organization are appointed to fill it. This method is
followed mostly in government organizations.
External sources or recruitment from outside
Internal sources may not always fulfill the needs of an organization. Naturally, most of the
concerns have to look for the external sources for recruitment the required number of employees
with the requisite qualifications. The external sources of recruitment include.
Direct Recruitment
Many organizations having one separate department called personnel department to select right
employees. For that organization may receive direct applications from the candidate. The
technical and clerical staff is appointed in this way.
Recruitment through the jobbers or Intermediaries
In India mostly unskilled or illiterate workers are recruited through this method. Under this
system the intermediary keeps a vital link between workers and employers. They are always
willing to supply the required number of workers.
Recruitment at the factory gate
Mostly unskilled workers are appointed through this method. Under this system, large number of
unemployed workers assemble at the factory gate for employment. The factory manager, or labor
superintendent or some other official may select the necessary workers.
Recruitment through advertisement
This is most common method for recruiting skilled workers, clerical staff, managerial personnel,
technical personnel. The vacancies are advertised in the popular daily newspapers and
applications are invited from the persons having required qualifications.
Recruitment through the recommendation of the existing employees
The existing employees recommend the suitable names for the employment.
Recruitment from colleges or universities or educational institutions
This method is used in some enterprises or Government department, when the recruitment of
persons required for administration and technical personnel.
Recruitment through employment exchange
The workers who want help in finding jobs make their registration in the nearest employment
office where details are recorded. Employment exchanges are the special offices for bringing
together those workers who are in need of employment.
Other methods
i) Badly Control system or Decasualization of labor – It means efforts taken for regularizing the
system or recruitment by means of controlling substitute of badly labor. Under this system, on
the first day of each month, special badly cards are given to a selected number of persons who
are advised to present themselves every morning at the factory when temporary vacancies are
filled up from amount them.
ii) Contract labor – Under this method contractor supplies labors to the industrial enterprises
according to their requirement.
Manpower Planning

Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization. Human Resource
Planning has got an important place in the arena of industrialization. Human Resource Planning
has to be a systems approach and is carried out in a set procedure.
The procedure is as follows:
 1. Analyzing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programs
4. Design training programs

Steps in Manpower Planning

Analyzing the current manpower inventory
Before a manager makes forecast of future manpower, the current manpower status has to be
analyzed. For this the following things have to be noted-
1. Type of organization
2. Number of departments
3. Number and quantity of such departments
4. Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting.

Making future manpower forecasts

Once the factors affecting the future manpower forecasts are known, planning can be done for
the future manpower requirements in several work units.
The Manpower forecasting techniques commonly employed by the organizations are as follows:

1. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
2. Trend Analysis: Manpower needs can be projected through extrapolation (projecting
past trends), indexation (using base year as basis), and statistical analysis (central
tendency measure).
3. Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
4. Work Force Analysis: Whenever production and time period has to be analyzed, due
allowances have to be made for getting net manpower requirements.
5. Other methods: Several Mathematical models, with the aid of computers are used to
forecast manpower needs, like budget and planning analysis, regression, and new venture
analysis.
Developing employment programs
Once the current inventory is compared with future forecasts, the employment programs can be
framed and developed accordingly, which will include recruitment, selection procedures and
placement plans.
Design training programs
These will be based upon extent of diversification, expansion plans, development programs, etc.
Training programs depend upon the extent of improvement in technology and advancement to
take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing,
directing and controlling are based upon the manpower. Human resources help in the
implementation of all these managerial activities. Therefore, staffing becomes a key to all
managerial functions.
2. Efficient utilization- Efficient management of personnel’s becomes an important function
in the industrialization world of today. Setting of large scale enterprises require
management of large scale manpower. It can be effectively done through staffing
function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also
comprises of motivational programs, i.e., incentive plans to be framed for further
participation and employment of employees in a concern. Therefore, all types of
incentive plans becomes an integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are
strong. Human relations become strong trough effective control, clear communication,
effective supervision and leadership in a concern. Staffing function also looks after
training and development of the work force which leads to co-operation and better human
relations.
5. Higher productivity- Productivity level increases when resources are utilized in best
possible manner. Higher productivity is a result of minimum wastage of time, money,
efforts and energies. This is possible through the staffing and its related activities
(Performance appraisal, training and development, remuneration).

Need of Manpower Planning

1. Manpower Planning is a two-phased process because manpower planning not only

analyses the current human resources but also makes manpower forecasts and thereby
 draw employment programs. Manpower Planning is advantageous to firm in following
manner:

2. Shortages and surpluses can be identified so that quick action can be taken wherever
required.
3. All the recruitment and selection programs are based on manpower planning.
4. It also helps to reduce the labor cost as excess staff can be identified and thereby
overstaffing can be avoided.
5. It also helps to identify the available talents in a concern and accordingly training
programs can be chalked out to develop those talents.
6. It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.
7. It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.

Summary
Staffing may be defined as the process of hiring and developing the required personnel to fill in
the various positions in the organization. It involves estimating the number and type of personnel
required. It involves estimating the number and type of personnel required, recruiting and
developing them, maintaining and improving their competence and performance. Recruiting
involves attracting candidate to fill the positions in the organization structure. Before recruiting,
the requirement of positions must be cleared identified. It makes easier to recruit the candidates
from the outside. Enterprises with a favorable public image find it easier to attract qualified
candidates.
Methods of recruitment:
 Employment agencies
 Advertisement
 Deputation
 Word of mouth
 Raiding
Selection is the process of choosing the most suitable person for the current position or for future
position from within the organization or from outside the organization.
Training is an instrument of developing the employees by increasing their skills and improving
their behavior. Training is required to be given to new employees as well as existing employees.
The methods to be used for training and the duration for which training should be given is
decided by the management according to the objectives of the training, the number of persons to
be trained and the amount of training needed by the employees.
Performance appraisal is the judgment of an employee’s performance in a job. It is also called as
merit rating. All managers’ are constantly forming judgment of their subordinates and are
continuously making appraisals.