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STAFFING
Prof. Preeti Bhaskar Symbiosis Centre for Management studies, Noida

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CHAPTER OUTLINE

Meaning, need and importance of staffing Steps in staffing process Recruitment- meaning and resources Selection-meaning and process

Training and Development

Compensation and incentives

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Staffing
It

is concerned with the Human resources of the enterprise. is concerned with acquiring, developing, utilizing, and maintaining human resources. is a process of matching jobs with individuals to ensure right man for the right job.

It

It

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Definition of Staffing

According to Koontz and O Donnel The managerial functions of staffing involves manning the organizational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed in to the structure

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Importance of staffing

Discovering and obtaining competent employees for various job. Improve the quantity and quality of output by putting right man for right job. Improves job satisfaction of employees Reduces cost of personnel by avoiding wastage of human resource.

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Steps in staffing
Manpower planning Recruitment Selection Orientation & Placement Training and development Employee remuneration

Performance Evaluation, Appraisal

Promotion and Transfer

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Step 1 Manpower Planning

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Step 1 Manpower Planning/ HRP

Determine the requirements of the employees A. Types of Employees (Job Analysis) B. No. of Employees

Manpower Planning Process

Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes

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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-Type of organization

Number of departments Number and quantity of such departments Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting.

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Manpower forecasting techniques

Expert

Forecasts: This includes informal decisions, formal expert surveys and Delphi technique. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.

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Developing employment programsOnce 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.

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Design training programsThese 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.

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Step 2 Recruitment

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Step 2 Recruitment
According to Flippo Recruitment is the process of attracting potential employees and stimulating them to apply for the jobs in the organization.

Certain influences, however, restrain a firm while choosing a recruiting source such as: Poor image Unattractive job Conservative internal policies Limited budgetary support Restrictive policies of government

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Sources of Recruitment
The

sources of recruitment may broadly be divided into various categories: internal sources and external sources and third party
Sources of Recruitment

Internal Sources

External Sources

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Internal sources
Transfers Promotions Employee referrals Lay-off Circulars

External Sources
Factory gate hiring Unsolicited applicants Job portals (monster.com, naukri.com) University or institute campus Public Employment exchange

Notification
Extension of services Informal Search

Labour contractors
Head hunters Internships Employment Agencies/ Consultancies Poaching / Raiding E-Recruitment Internships Outsourcing Walk-in Interviews Advertisement Tele recruiting

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Internal Method

Promotions and transfers:

Promotion is the movement of an employee from a lower level position to a higher level position with increase in salary Transfer, on the other hand, is a lateral movement within the same grade, from one job to another.

Job posting: It is a method of publicizing job openings on bulletin boards, electronic media and similar outlets by a company.

Employee referrals: regarding a job applicant.

It is a kind of recommendation from a current employee

Lay-off : Lay-off refers to the temporary separation of employee from the organization .Recalling the lay off candidates to fill the vacant position

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External Recruitment
Merits

Demerits

Wide choice: The organization has the freedom to select candidates from a large pool. Persons with requisite qualifications could be picked up. Injection of fresh blood: People with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working.

Expensive: Hiring costs could go up substantially. Tapping multifarious sources of recruitment is not an easy task, either. Time consuming: It takes time to advertise, screen, to test and to select suitable employees. Where suitable ones are not available, the process has to be repeated. Demotivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. The feeling that their services have not been recognized by the organization, forces them to work with less enthusiasm and motivation. Uncertainty: There is no guarantee that the organization, ultimately, will be able to hire the services of suitable candidates. It may end up hiring someone who does not fit and who may not be able to adjust in the new set-up.

Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. Such a competitive atmosphere would help an employee to work to the best of his abilities.

Long term benefits: Talented people could join the ranks, new ideas could find meaningful expression, a competitive atmosphere would compel people to give of their best and earn rewards, etc.

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Internal Recruitment
Merits

Demerits

Economical: The cost of recruiting internal candidates is minimal. No expenses are incurred on advertising. Suitable: The organization can pick the right candidates having the requisite skills. The candidates can choose a right vacancy where their talents can be fully utilized. Reliable: The organization has knowledge about the suitability of a candidate for a position. Known devils are better than unknown angels! Satisfying: A policy of preferring people from within offers regular promotional avenues for employees. It motivates them to work hard and earn promotions. They will work with loyalty, commitment and enthusiasm.

Expensive: Hiring costs could go up substantially. Tapping multifarious sources of recruitment is not an easy task, either. Time consuming: It takes time to advertise, screen, to test and to select suitable employees. Where suitable ones are not available, the process has to be repeated. Demotivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. The feeling that their services have not been recognized by the organization, forces them to work with less enthusiasm and motivation. Uncertainty: There is no guarantee that the organization , ultimately, will be able to hire the services of suitable candidates. It may end up hiring someone who does not fit and who may not be able to adjust in the new set-up.

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Alternatives to recruiting
Overtime
Subcontracting Temporary

employees Employee leasing Outsourcing

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Overtime: Short term fluctuations in work volume could best be solved through overtime. The employer benefits because the costs of recruitment, selection and training could be avoided. The employee benefits in the form of higher pay. However, an overworked employee may prove to be less productive and turn out less than optimal performance. Employees may slow down their pace of work during normal working hours in order to earn overtime daily. In course of time, overtime payments become quite routine and if, for any reason, these payments do not accrue regularly, employees become resentful and disgruntled. Subcontracting: To meet a sudden increase in demand for its products and services, the firm may sometimes go for subcontracting instead of expanding capacities immediately. Expansion becomes a reality only when the firm experiences increased demand for its products for a specified period of time. Meanwhile, the firm can meet increased demand by allowing an outside specialist agency to undertake part of the work, to mutual advantage. Temporary employees: Employees hired for a limited time to perform a specific job are called temporary employees. They are particularly useful in meeting short term human resource needs. A short term increase in demand could be met by hiring temporary hands from agencies specialising in providing such services. Its a big business idea in United States these days ($3-$4 billion industry). In this case the firm can avoid the expenses of recruitment and the painful effects of absenteeism, labour turnover, etc. It can also avoid fringe benefits associated with regular employment. However, temporary workers do not remain loyal to the company; they may take more time to adjust and their inexperience may come in the way of maintaining high quality.

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Employee leasing: Hiring permanent employees of another company who possess certain specialised skills on lease basis to meet short-term requirements although not popular in India is another recruiting practice followed by firms in developed countries. In this case, individuals work for the leasing firm as per the leasing agreement/arrangement. Such an arrangement is beneficial to small firms because it avoids expense and problems of personnel administration.

Outsourcing: Any activity in which a firm lacks internal expertise and requires on unbiased opinion can be outsourced. Many businesses have started looking at outsourcing activities relating to recruitment, training, payroll processing, surveys, benchmark studies, statutory compliance etc., more closely, because they do not have the time or expertise to deal with the situation. HR heads are no longer keeping activities like resume management and candidate sourcing in their daily scrutiny. This function is more commonly outsourced when firms are in seasonal business and have cyclical stuffing needs

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Recruitment: Indian Experiences

Pepsi:

Pepsi is a flat organisation. There are a maximum of four reporting levels. Executives here emphasise achievement, motivation, the ability to deliver come what may. As the Personnel Manager of Pepsi Foods remarked we hire people who are capable of growing the business rather than just growing with the business. Recruitees must be capable of thinking outside the box, cutting the cake of conventional barriers whenever and wherever necessary. They must have a winners mindset and a passion for creating a dynamic change. They must have the ability to deal with ambiguity and informality.

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Reebok:

As Reeboks customers are young, the company places emphasis on youth. The average age at Reebok is 26 years. Employees are expected to have a passion for the fitness business and reflect the companys aspirations. Recruitees should be willing to do all kinds of job operations. The willingness to get ones hands dirty is important. They must also have an ability to cope with informality, a flat organisation and be able to take decisions independently and perform consistently with their clearly defined goals.

Indian Hotels

The Taj group expects the job aspirants to stay with the organisation patiently and rise with the company. Employees must be willing to say yes sir to anybody. Other criteria include: communication skills, the ability to work long and stressful hours, mobility, attention to personal appearance and assertiveness without aggression.

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Step 3 SELECTION

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SELECTION
Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization.
According to Weihirch and Koontz, Selecting manager is

Selection is much more than just choosing the best candidate. It is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires.

choosing among the candidates the one who best meet the position requirements.

Reception

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Screening Interview

Steps in the Selection Process

Application blank

Selection Tests

Selection Interview

Medical Examination

Reference Checks

Hiring Decision Selection is usually a series of hurdles or steps. Each one must be successfully cleared before the applicant proceeds to the next

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Selection Process

Reception

A warm, friendly and courteous reception is extended to candidates with a view to create a favorable impression. Employment possibilities are also communicated honestly and clearly

Screening interview

The HR department tries to screen out the obvious misfits through this courtesy interview. A prescribed application form is given to candidates who are found to be suitable.

Application blank

It is a printed form completed by job aspirants detailing their educational background, previous work history and certain personal data.

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Contents Of Application Blank

Personal data (address, sex, identification marks) Marital data (single or married, children, dependents) Physical data (height, weight, health condition) Educational data (levels of formal education, marks, distinctions) Employment data (past experience, promotions, nature of duties, reasons for leaving previous jobs, salary drawn, etc.) Extra-curricular activities data (sports/games, NSS, NCC, prizes won, leisure-time activities)

References (names of two or more people who certify the suitability of an applicant to the advertised position)

Name: _________________________________________________________________________ A dd r es s : _______________________________________________________________________ Phone Number (Res): _______________________ Education College/University Attended: ____________ Highest Degree

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(a) BA/BSc/MA/MSc/MBA/MCom (b) BE/BT ech/ MT ech (c) Any other

High School Attended: _____________________________ Work Experience (List most recent jobs first) Name of the Organisation: Gross Salary: ______________ (annual; be sure to include any bonuses or commission earned) Job Title: ________________________________________________________ Name of Last Supervisor: __________________________________________ May we contact this supervisor? Y es / No Reason(s) for Leaving: ____________________________________________________________

Name of Organisation: ____________________ Date of Employment: _______ from to ____ Gross Salary: ___________ (annual; be sure to include any bonuses or commission earned) Job Title: ________________________________________________________ Name of Last Supervisor: __________________________________________ May we contact this supervisor? Y es / No Reason(s) for Leaving: ____________________________________________________________

Name of Organisation:

____________________

Date of Employment:

_______ from to ____

Gross Salary: ___________ (annual; be sure to include any bonuses or commission earned) Job Title: ________________________________________________________ Name of Last Supervisor: __________________________________________ May we contact this supervisor? Y es / No Reason(s) for Leaving: ____________________________________________________________

Work skills 1. 2. A. C. List any job-related languages you are able to speak or write: _________________________ List any job-related clerical (e.g., typing) or technical skills (e.g., computer programming) that you ha ve: ___________________________________ B. ___________________________________ ___________________________________

Additional Information In case of an emergency , please contact. Name: __________________________________________ A dd r es s : _______________________________________ T elephone: ______________________________________

I understand that falsification of information is grounds for dismissal. I understand that my employment at the company may be discontinued at any time for any reason either by myself or by the company . I agree to submit to a drug and/or alcohol test as a condition of employment.

Signature

Date

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SELECTION TESTING
A

test is a standardized, objective measure of a sample of behaviour. Selection tests are increasingly used by companies these days because they measure individual differences in a scientific way, leaving very little room for Individual bias.

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Selection Tests
Intelligence

test Aptitude test Personality test Projective test Interest test Preference test

Achievement

test Simulation test Assessment centre The leaderless group discussion Business games Individual presentations

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A.

Intelligence tests: They measure a candidates learning ability and also the ability to understand instructions and make judgements. They do not measure any single trait but several mental abilities (memory, vocabulary, fluency, numerical ability, perception etc)

B.

Aptitude tests: They measure a candidates potential to learn clerical, mechanical and mathematical skills. Since they do not measure a candidates on the job motivation, they are generally administered in combination with other tests.

C.

Achievement tests: These are designed to measure what the applicant can do on the job currently, ir., whether the testee actually knows what he or she claims to know.

D.

Simulation tests: Simulation exercise is a test which duplicates many of the activities and problems an employee faces while at work.

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E. Personality tests: They measure basic aspects of a candidates personality such as motivation, emotional balance, self confidence, interpersonal behaviour, introversion etc.

Projective tests: These tests expect the candidates to interpret problems or situations based on their own motives, attitudes, values etc (interpreting a picture, reacting to a situation etc) Interest tests: These are meant to find how a person in tests compares with the interests of successful people in a specific job. These tests show the areas of work in which a person is most interested. Preference tests: These tests try to compare employee preferences with the job and organizational requirements.

F.

Assessment centre: It is a standardized form of employee appraisal that uses multiple assessment exercises such as in basket, games, role play etc and multiple raters.

Selection Practices Of Global Giants

1.

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Siemens India: It uses extensive psychometric instruments to evaluate shortlisted candidates. The company uses occupational personality questionnaire to understand the candidates personal attributes and occupational testing to measure competencies.

2.

LG Electronics India: LG Electronics uses 3 psychometric tests to measure a persons ability as a team player, to check personality types and to ascertain a persons responsiveness and assertiveness.

3.

Arthur Anderson: While evaluating candidates, the company conducts critical behavioural interviewing which evaluates the suitability of the candidate for the position, largely based on his past experience and credentials.

4.

Pepsico India: The company uses India as a global recruitment resource. To select professionals for global careers with it, the company uses a competencybased interviewing technique that looks at the candidates abilities in terms of strategising, lateral thinking, problem solving, managing the environment. These apart, Pepsi insists that to succeed in a global posting, these individuals possess strong functional knowledge and come from a cosmopolitan background.

Types Of Selection Interviews

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The nondirective interview: the recruiter asks questions as they come to mind

The directive or structured interview: the recruiter predetermined set of Questions that are clearly job-related

uses

The situational interview: the recruiter presents a hypothetical incident and asks The candidate to respond The behavioural interview: the focus here is on actual work related incidents and The applicant is supposed to reveal what he or she did in a given situation

Stress interview: the recruiter attempts to find how applicants would respond to Aggressive, embarrassing, rule and insulting (at times) questions
The panel interview: three or four interviewers pose questions to the applicant and Examine the suitability of the candidate

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Medical Examination
To

check the physical fitness for the job concerned . To protect the organization from infectious disease

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Reference Checking
Contacting

previous employers of a job applicant to determine his or her job history. Reference check may also include checking with school(s) or college(s) attended by the applicant to verify educational qualifications.

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Hiring decision

Basis
Meaning

Recruitment
Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization

Selection

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selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. to choose the right candidate to fill the various positions in the organization.

Purpose

to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization Recruitment is a positive process i.e. encouraging more and more employees to apply

Process

selection is a negative process as it involves rejection of the unsuitable candidates.

Contract

There is no contract of recruitment established in recruitment

selection results in a contract of service between the employer and the selected employee. Selection is very costly. This is because a lot of money is spent on conducting different types of tests, interviews, medical examinations, etc. Similarly, the experts who conduct selection procedure are paid very high fees. This makes selection a very costly process

Cost Factor

Recruitment is not expensive. It mostly involves only advertisement cost.

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Step 4 Orientation

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Orientation
Orientation employees are made aware about the mission and vision of the organization, the nature of operation of the organization, policies and programs of the organization.
The

main aim of conducting Orientation is to build up confidence, morale and trust of the employee in the new organization, so that he becomes a productive and an efficient employee of the organization and contributes to the organizational success.
The

nature of Orientation program varies with the organizational size, i.e., smaller the organization the more informal is the Orientation and larger the organization more formalized is the Orientation program.

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Types of Orientation
General Orientation Specific Orientation

Orientation program includes Familiarize

and Introduce the company Employees layout Type of organizational structure Departmental goals Organizational layout General rules and regulations Standing Orders Grievance system or procedure

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Step 5
TRAINING AND DEVELOPMENT

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TRAINING
Acc. to Michael Armstrong the systematic development of knowledge, skills and attitudes required by an individual to perform adequately a given task of job. Acc. to Dale S. Beach, Training is the act of increasing knowledge and skills of an employee for doing a particular job.

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Training & Development

TRAINING
Training Top Level Training Lower Level

&
DEVELOPMENT

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DEVELOPMENT
Development relates to the development and growth of the employees in an organization through a systematic process. It helps in the developments of the intellectual, managerial, and people management skills of managers. It trains managers to understand and analyze different situations, and to arrive at and implement the correct solutions.

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OBJECTIVES OF TRAINING:
To impart the basic knowledge and skill to the new entrants and enable them to perform their jobs well.
To equip the employee to meet the changing requirements of the job and the organization.

1.

2.

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Training Need and Importance of Training

Training is given on four basic grounds:
New

candidates who join an organization are given training. This training familiarize them with the organizational mission, vision, rules and regulations and the working conditions.
existing employees are trained to refresh and enhance their knowledge.

The If

any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing a new equipment, changes in technique of production, computer implantment. The employees are trained about use of new equipments and work methods. promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher level job.

When

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BENEFITS OF TRAINING
Improving

Employee Performance Updating Employee Skills Avoiding Managerial Obsolescence Preparing for Promotion and Managerial Succession Retaining and Motivating Employee Creating an Efficient and Effective Organization Improves morale of employees Less supervision Fewer accidents Chances of promotion. Increased productivity

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Methods of Training
On-the Job Training
Trainee

Off-the Job Training

Organizing Special Curriculum and Classes Organizing Conference and seminars Training in Education Institutions

Case Study Method Role Playing Method Lecture Method Incident Analysis Method

Job Rotation Board Membership meeting Vestibule training

Coaching

Temporary promotions

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Ways/Methods of Training
On

the job training-

On the job training methods are those which are given to the employees within the everyday working of a concern. It is a simple and cost-effective training method. The employees are trained in actual working scenario. The motto of such training is learning by doing.
Off

the job training-

Off the job training methods are those in which training is provided away from the actual working condition. It is generally used in case of new employees. Instances of off the job training methods are workshops, seminars, conferences, etc. Such method is costly and is effective if and only if large number of employees have to be trained within a short time period

Simulation Exercises
A.

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B.

C.

D.

E.

Case study:- Case studies which are prepared based on the actual experiences of organizations, help the candidates the real problems faced by managers in organizations. Business Games:- The trainees are divided into different groups or teams. They play the roles of competing firms in a simulated market. Role Playing:- Participants enact roles to solve problems that are common in real-life situations. Incident Method:- This method aims to develop the intellectual ability, practical judgment and social awareness of the employee. Each employee is given a written incident which he analyzes, identifies the problems and the probable causes and suggests solution. In-basket Method:- This method simulates the important aspects of a managers job. Candidate is given documents similar to the items normally found in a managers inbasket, such as memos , letters, and reports.

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DIFFERENCE b/w TRAINING & DEVELOPMENT

LEARNING DIMENSIONS TRAINING DEVELOPMENT

WHO?
WHAT?

NON-MANAGERS
TECHNICALMECHANICAL OPERATIONS

MANAGERS
THEORETICALCONCEPTUAL IDEAS

WHEN?

SPECIFIC JOB RELATED INFORMATION

GENERAL KNOWLEDGE

WHY?

SHORT TERM

LONG RUN

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Step 6 Compensation

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A Definition . . .
All

forms of

financial

return, Non-financial Incentives

that

employees receive as part of their employment relationship

Cash, Bonuses, Insurance, Vacation, Holidays Perks, Recognition

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Wages
A wage is a sum of money paid under contract by an employer to a worker for services rendered Benham
Methods

Time Wage Payment method

Piece wage Payment Method

Incentive wage payment method

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Factors that Influence Wage Levels

Conditions of Labor Market Area Wage Rates Cost of Living Compensation Policy of Organization Worth of Job Employees Relative Worth

WAGE MIX

Collective Bargaining
Legal Requirements Employers Ability to Pay

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Methods

Time Wage Payment method

Piece wage Payment Method Wage = No. of Units * rate per unit

Incentive wage payment method

Wage = Time * rate

Financial = Profit sharing Co partnership Commission Bonus

Non-Financial = Job security Promotion Praise & recognition

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Financial
Direct
wages,

salaries, commissions, bonuses plans

Indirect
insurance
life,

health, dental, disability

social

assistance benefits
plans, social security, workers comp holidays, sick leave

retirement

paid

absences

vacations,

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INCENTIVES BASED COMPENSATION

Incentives

are monetary benefits paid to workmen in recognition of their outstanding performance.

They are defined as variable rewards granted according to variations in the achievement of specific results.

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Advantages of Incentive based compensations

Incentives are important for inducement and motivation of workers for higher efficiency and greater output. 2.Employee earnings go up 3.Enhanced standard of livings of employees 4.Reduction in total unit cost of production, 5.Productivity increases. 7.Reduced supervision
1.

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Step 7 Performance evaluation and Appraisal

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Performance Appraisal
Performance Appraisal is an objective assessment of an individuals performance against well defined benchmarks.

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Performance Appraisal
Key Points Evaluation Comparison Actual v/s. Standards Results Rewards Corrective Action

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Use of Performance Appraisals

1.Promotions 2.Confirmations 3.Training and Development 4.Compensation reviews 5.Competency building 6.Improve communication 7.Evaluation of HR Programs 8.Feedback & Grievances

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Objective of Performance Appraisal

To effect promotions based on competence and performance To confirm the services of probationary employees upon their completing the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where regular pay scales have not been fixed

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Contd

To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.

Finally, PA can be used to determine whether HR programs such as selection, training, and transfers have been effective or not. To improve communication. PA provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns.

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