Staffing Class 12 Notes CBSE Business Studies Chapter 6 (Free PDF Download)

Introduction and Meaning: Staffing

• The working of an organization depends upon the Human Resource of that organization. The growth highly depends upon introduction of efficient and quality staff. 

• Staffing is the next step after planning and selection of the organization structure. 

• In this step the right people are placed in the right positions. This involves various steps like recruitment, selection, training, development, promotion, compensation and performance appraisal of the workforce.

• Therefore, Staffing is a management function that entails hiring candidates who are a good fit for the organization by evaluating their skills and knowledge and assigning them specific roles based on their skill set. It is involved in meeting an organization's human resource requirements. 

Importance of Staffing

Proper staffing is an organization has the following benefits:

• It helps in finding out the required workforce for various job roles.

• Placing the right people at the right positions makes the performance better.

• Continuous survival and growth of an organization is ensured through the succession planning for the managers.

• Identification of workforce requirements and filling positions accordingly. 

• It avoids disruptions by showing the exact shortages of personnel in advance.

• Helps in improving the level of job satisfaction among the employees through objective assessment and fair reward for their contribution.

Benefits of Staffing

• Best candidate: Staffing aids in the identification and selection of the best candidate for the job.

• Increases Efficiency: It ensures that the right people are chosen for the right job, which contributes to the organization's overall efficiency and performance.

• Better growth opportunities: An organization has a better chance of growing if the best candidates are chosen for the job.

• Manpower Planning: Staffing aids in manpower planning and proper manpower utilization. It also aids in the filling of vacant job positions, ensuring that working efficiency is maintained.

• Harmony: Through staffing the right kind of people are selected for the job, whose selection is based on merit. These people are put to work after the required background checks and provision of proper training. Hence the right people at the right job will be able to work more efficiently, and the overall harmony in the organisation will be kept intact as well.
  
  

Staffing as a Part of Human Resource Management

• This function is performed by the managers.

• In this the people or the resources are motivated and made acquainted with the goals and objectives of the organization.

• It is considered as a generic function of the organization.

• The performance of an organization highly depends on the performance and efficiency of the human resource. 

• The success in achieving the goals and objectives of the organization is also dependent on the level of motivation, determination and competence of the 

Specialized Activities of the Hrm

• Searching for qualified individuals i.e recruitment.

• Analysing the jobs to be performed, collecting information and preparing the job descriptions.

• Developing pay structure, incentives and remunerations.

• Designing of training programs and structure for career growth.

• Handling grievances and complaints.

• Maintaining labour relations and union management relations.

• Planning for social security and welfare of employees.

• Defending the company in lawsuits and avoiding legal compliance
  
  

Staffing Process

1. Estimating Manpower Requirements: The basic process involves the planning of manpower needed to fill various positions in the organization and perform the tasks as per the objectives of the organization. In this step;

• Various job positions are created. 

• Educational qualifications required, skill set needed to perform each job, prior experience needed, etc is decided.

2. Recruitment: A positive process with an aim to attract a larger number of people with desirable profiles to apply for positions vacant in the organisation. There are namely two sources of recruitment, external and internal. In this step, the following steps are done,

• The job descriptions are created.

• Medium of advertising is decided. The advertisement may be displayed on the factory gate or may be published through print media or may be shared through electronic media. 

• This involves locating and determination of potential candidates. In this both external and internal sources of recruitment are explored.

3. Selection: This process involves the finding of or choosing the most appropriate candidate for the job amongst the pool of applicants. This process involves a series of events like tests and interviews. It also ensures,

• That the organization gets the best among all those who applied.

• The self-esteem and prestige of the selected ones are enhanced.

4. Placement and Orientation: In this process the employee selected is given an introduction about the work environment, he/she is made to see the workplace, and is introduced to colleagues, subordinates and seniors. He/she is made to familiarise with the rules and regulations and policies of the organization

Placement involves placing the selected employee at the position he is selected for.

5. Training and Development: In this dynamic world it has become very important for people to keep themselves upgraded as per the requirement and technologically advanced. 

This process of upgrading oneself requires training, the organization may have in-house training centers or may have tie-ups with other organizations to train their employees. Through these training programs employees get trained  and it also serves as a benefit to the organization in turn. 

These programmes motivate the employees and also their competencies are strengthened. This also helps in retention of the employees and also attracts talents.

6. Performance Appraisal: Performance appraisal means to analyse the performance of the employees against set benchmarks or based on previous performances. Basically, this is a way to provide feedback on the performance of the employees of an organization.

7. Promotion and Career Planning: Promotion means to upgrade the profile or position of a person. This acts as a major push factor in the career objectives of people. Promotions motivate people to work better. Promotion to a higher position means serving greater responsibilities which in turn brings greater pay and job satisfaction. 

8. Compensation: Compensation is the payment or reward given to employees of an organization by the way of salary and wages. This may be in various forms like salaries, incentives, commissions, bonuses and indirect payment like medical facilities, etc.
   
   

Aspects of Staffing

The three aspects of Staffing are as follows:

• Recruitment

• Selection

• Training
  
  

1. Recruitment

• This means to find the suitable candidate for a job position. Advertising acts as an integral part of the recruitment process and occurs through several channels like newspaper, publications, campus interviews, etc.

• The objective of the recruitment process is to attract the potential candidates for the suitable job profiles having adequate qualifications and characteristics that may fit him or her for the job. 

• In this suitable candidates are located and invited to apply for jobs in the organization. The process involves various activities like:

• Identification of different sources of labour supply.

• Assessment of their validity.

• Choosing the most suitable source or sources.

• Inviting applications from candidates looking for a job.
  
  

Sources of Recruitment

• Internal Sources

• External Sources

Internal Sources

Internal Sources of recruitment are those sources in which the talent acquisition is done from within the organization. No new members or employees are recruited here. There are two internal sources of recruitment, that are:

1. Transfers: 

• Recruitment through the source means placing of the employees or shifting of the employees from one job to another from one department to another. 

• Here the employees can be shifted from one shift to another without any substantial change in the responsibilities and status of the employee. This is the horizontal shift in the position of an employee.

• Transfers may be inter city or inter state. 

• Job transfer acts as an important way of avoiding termination and may also remove individual problems and grievances.

2. Promotion: 

• Through this process, vacancies in higher positions are filled. This is also known as the vertical shift of employees. In this, people are given higher and greater responsibilities of the organization. 

• This practice helps in improving motivation, loyalty and satisfaction among the employees.

• This also initiates a chain of promotions at lower levels too.
  
  

Merits of Internal Sources

• Boosts employee morale: Employees get motivated to perform better so that they can acquire higher positions in the organization. 

• Reliable method: It simplifies the process of selection and placement. This is one of the most reliable ways since the candidates are already known to the organization.

• Tool of Training: Transfers act as a tool of training the employees to prepare them for higher jobs. 

• Creates balance: It also enables shifting employees from those departments where there is a surplus to those departments that have shortages.

• Inexpensive: This is cheaper as compared to recruitment from external sources.
  
  

Limitations of Internal Sources

• No fresh blood in the organization: The scope for induction of fresh talents gets reduced. 

• Employee lethargy: Employees may become lethargic if they become sure of time bound promotions.

• Not suitable for new organizations: Newly formed organizations cannot use this source, as it requires existing employees to fulfil the human resource needs.

• No competitive spirit: Spirit of Competition may be hampered.

• Lower productivity: Frequent transfers may lower the productivity of the organization.

External Sources

When the Internal Sources fail to cater the needs, the organization starts the recruitment through external sources. 

There could be reasons like Incapability of the existing employees to fulfill the eligibility criteria, new organization etc. 

External recruitment brings fresh hopes and talents in the organization. The commonly used external sources are:

1. Direct Recruitment: In this type of recruitment process a notice is put on the notice board mentioning the details of the job. Aspiring job-seekers assemble outside the organization's premises on specified date and time and the selection is done.

2. Casual Callers: Companies may maintain a database of applications received over a period of time. List is prepared so that the candidates can be screened out to fill the vacancies as they arise and also it reduces the cost of recruitment.

3. Advertisement: Advertisements in newspapers and professional journals are given when a wider choice of applicants are required. The source is advantageous to the organization as a wide variety of applicants apply to search for a job and also the management has a wide range of choice.

4. Employment Exchange: The employment exchange is a government organisation where potential employees register themselves. The employment exchange acts as a link between employers and potential employees. 

5. Placement Agencies and Management Consultants: Placement agencies act as a medium to bridge the gap between the job seekers and the job providers. These agencies charge a nominal amount of fee for their services and they are very useful where extensive screening is required. They generally have professional recruiters who can easily fulfill the need of top executives for the companies by making the right offers.

6. Campus Recruitment: This is one of the most popular sources of recruitment. The recruitment is done through management colleges, universities, vocational training centres.

7. Advertising on Television: Companies may use electronic media like television to advertise the vacancy and the desirable profile for the advertised job.

8. Web Publishing: Companies may use the internet to look for potential employees and may advertise vacant positions in the organisation.

9. Labour Contractors: Companies may appoint a labour contractor as a company employee and give him the responsibility to bring in casual workers. 

Merits of External Sources

• Qualified Personnel: Management can use external sources to attract qualified and trained people to apply for the positions in the organisation.

• Wider Choice: Large number of applications received from potential employees provided company is a wider choice while selecting the right candidate.

• Fresh Talent: People joining from outside world bring in fresh talent and new ideas infusing new blood in the organisation

• Competitive Spirit: New employees bring in the competitive spirit in the company both existing and new employees work hard to prove their competence.
  
  

Limitations of External Sources

• Dissatisfaction among existing staff: Filling of positions using external sources may lead to dissatisfaction among existing employees who may be expecting to rise through promotions.

• Lengthy process: It is a very time consuming process of appointing people.

• Costly process: Recruitment through external sources requires a lot of money to be paid for advertising, processing applications, payment to professional agencies, etc.
  
  

B. Selection

This is the process of choosing the best out of all. A series of employment tests and interviews are conducted in order to choose the person who would be the best fit for the job.

The process starts from the screening of applications and may continue till the offer of employment acceptance and joining of the candidate.

Process of Selection

• Preliminary Screening: It helps in shortlisting of the suitable and probable candidates and elimination of the unqualified or unfit job seekers based on the application forms.

• Selection Tests: this may be an online or an offline test. In this test a wide range of questions may be asked to determine the intelligence in personality and manual skills of the person. 

Important tests used for the selection of employees are:

• Intelligence test: It measures a candidate's ability to learn.

• Aptitude test: It measures the candidates ability to learn new skills.

• Personality test: It measures the overall personality of the candidate in terms of emotions, reactions, maturity, value systems etc.

• Trade test: It measures the candidate's existing level of knowledge and proficiency.  

• Interest test: It identifies the candidate's areas of interest.  

• Employment Interview: This is a formal and in-depth conversation with the candidate and it is conducted to test the suitability of the candidate.

• Reference and Background Check: This is done in order to verify the credibility of the information provided by the employees. This is also done to gather additional information about the candidate.

• Selection Decision: At this stage all the members involved in the process of selection meet and take final decision regarding selection of candidates. 

• Medical Examination: This examination is undertaken to check the fitness of the candidate before the job offer is made. 

• Job offer: In this step of the selection process the applicants who have passed all the previous hurdles, a job offer is made to them through the letter of appointment or confirmation. The letter contains a date from which the appointee must report on duty. 

• Contract of Employment: After the job offer is made the duration of employment agreed upon by both the parties is executed.

Difference between Recruitment and Selection:

C. Training and Development

• This is an attempt to improve the current and future performance of the employee by increasing the ability to perform through various training programs and introducing him or her with skills and knowledge. 

• Training is the process of improving an employee's skills and competence required to perform a specific job.

• The process of an employee's overall growth is referred to as development.

Importance of Training and Development

Training and Development is one of the most important parts of skill enhancement and is very important for career growth of the employees and objective fulfillment for the organization.

Benefits to the organization

• Providing training to the employees in a systematic manner is better than the hit and trial methods which generally leads to wastage of time and efforts of both the organization and the employee.

• The productivity of the employees in both the terms quantity and quality leading to better profits.

• Training helps in catering to the fast changing needs of the environment and also reduces absenteeism and employee turnover. It also equipped the future managers to take over in case of emergencies.

Benefits To the Employee

• It improves the skill set of the employees and knowledge which will lead to a better and a bright career of the individual.

• It makes the employees more efficient to handle machines which makes them less prone to accidents.

• It increases the performance of the individual and helps in burning more. Also it increases the satisfaction and morale of the employees.

Difference Between Training and Development:

Training, development and Education

• Training: Training is the process of improving an employee's skills and competence required to perform a specific job.

• Development: Development refers to the learning opportunities that are designed to help the employee's grow. 

• Education: It is the method of increasing the knowledge and understanding of the employees. It helps in better interpretation of the knowledge.

Training Methods

A. On the Job Methods

On-the-job training refers to the training where the subordinates learn by doing in the workplace, under the supervision of superiors. It includes:

• Apprenticeship Programmes: It is a method in which a trainee works under the guidance of a master worker for a prescribed period of time with an aim to acquire specific skills.

• Coaching: It is a method in which a superior acts as a coach and guides or instructs the employee trainee to learn skills and processes within a defined period of time.

• Internship Training: It is a combined effort of educational institutions and business organisations to give work exposure to students and prepare them for real work culture.

• Job Rotation: It is a method of training where employees are trained with a full range of skills by shifting them from one job to another aur from one department to another.

B. Off the Job Methods

On-the-job training refers to the training where the subordinates learn by doing at a place away from the workplace. It includes:

• Classroom Lectures/ Conference: It is a method of training where information is conveyed through lectures for conferences.

• Films: It is a method of training where important information or skills are demonstrated using films, televisions, videos or presentations.

• Case study: It is a method of training where actual work situations of the past are discussed to identify problems, analyse its causes, and develop alternative solutions to solve problems.

• Computer Modelling: It is a method of training where the actual work environment is imitated by programming a computer.

• Vestibule Training: It is a method of training where a duplicate work environment called ‘vestibule’ is created to train employees with the technical and operating skills.

• Programmed Instructions: It is a method of training where specific skills or knowledge are broken into units and arranged in a logical and sequential learning package.

Importance or Need of Staffing

Staffing is an important function of management. The following points highlight the same:

1. Obtaining Proficient Personnel: It ensures the accessibility of the most suitable and skilled person for different kinds of jobs.

2. Higher Performance: By placing the right person in the right position, it ensures better accomplishment.

3. Continuous Growth and Survival: It makes sure continuous survivability and progress of the enterprise, through the consecutive planning for building managers.

4. Maximum Utilization of Human Resources: It helps in preventing overmanning, underutilization of manpower, and high labour costs. It also helps in avoiding the interruption of work by indicating prior to the probable scarcity of employees.

5. Helps in Attaining Organizational Goals: It improves job satisfaction by providing fair compensation and regular appraisal, which helps in realizing organizational goals.
   
   

Staffing as a Part of Human Resource Management

The staffing function deals with the human factor of management. It is important because the performance and the growth of an organization depend upon its human resource, its proficiency and driving force. Along with the growth of the organization and the increase in the number of employees, a separate department called Human Resource Development (HRD) is formed. It consists of skilled people for all areas related to Human Resource Management. The HR personnel performs some specialized activities including:

1. Recruiting or searching for eligible candidates.

2. Analyzing job requirements and preparing the description of the job.

3. Developing the remuneration and incentive plans.

4. Training of the employees.

5. Developing and maintaining labor relations and union-management relations.

6. Taking care of the complaints and grievances.

7. Providing social security and the wellbeing of employees.

8. Defending the organization in lawsuits and avoiding legal complications.

Therefore, staffing is extended to what is known as Human Resource Management (HRM).

Evolution of Human Resource Management

Human Resource Management has evolved from a number of important developments like labour welfare officer, personnel officer, and personnel manager, and human resources manager.

During the phase of the industrial revolution, when trade unions emerged, a person was needed to act as a mediator between the workers and the owners and that is how the concept of labour welfare officer came into existence. The personnel manager was responsible for hiring and maintaining staff who were employed for a huge factory system. The human resource manager was responsible for the well-being of the staff. The rapid advancement of technology and the increasing size of the organization and the complicated behaviour of human beings led to the evolution of Human Resource Management.

Staffing Process

The process of staffing begins with estimating the requirement of human resources and exploring different sources from where they can be obtained. Furthermore, the process aims at providing training to the hired employees for personal development, compensation, and career planning to retain them in the organization.

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1. Estimating the Manpower Requirements

This stage involves forecasting and determining the number and kinds of manpower required by the organization in the future. The analysis of workload and the force to complete the work helps the manager to know the actual manpower required. It also helps to analyze whether the organization is understaffed or overstaffed. Further, the job description is designed by specifying the qualification, experience, training, and personal characteristics required for various positions.

2. Recruitment

This stage includes the process of searching for prospective candidates and motivating them to apply for jobs in the company. The objective of this stage of recruitment is to create a pool of prospective candidates and then select the best from the pool.

3. Selection

In this stage, the eligible candidate is chosen for the right position from the pool of candidates. The selection includes a series of interviews, tests, and negotiations in order to generate the contract of employment.

4. Placement and Orientation

Placement here means occupying the position or the post for which the candidate is selected. Then the selected candidate has to go through the orientation or the induction program where he is introduced to the other staff of the company and also familiarized with the rules and policies of the organization. The senior managers of the company conduct this program by giving a brief presentation of the company.

5. Training and Development

In this stage, the new employee is trained to develop his knowledge about the job, skill sets, and attitude. The training also helps the person in his career building and motivation level.

6. Performance Appraisal

Appraisal means evaluating the employee’s performance as per the predetermined standards. In this step, the capability of the employee is evaluated and provides feedback and scope for improvement.

7. Promotion and Career Planning

In this stage, the organization addresses the career prospects and promotional avenues to the employees, which is beneficial to both the organization and the employee. This also motivates the employee and increases his productivity, which would serve the long-term interests of the organization.

8. Compensation

Compensation means the payment or rewards given to the employee for the job he is performing. It can be in the form of salaries, wages, incentives, commissions, etc. Incentives are given to motivate employees to perform better.

Chapter-wise Revision Notes on Class 12 Business Studies  

• Chapter 1 - Nature and Significance of Management Notes

• Chapter 2 - Principles of Management Notes

• Chapter 3 - Business Environment Notes

• Chapter 4 - Planning Notes

• Chapter 5 - Organising Notes

• Chapter 7 - Directing Notes

• Chapter 8 - Controlling Notes

• Chapter 9 - Financial Management Notes

• Chapter 10 - Financial Markets Notes

• Chapter 11 - Marketing Notes

• Chapter 12 - Consumer Protection Notes

• Chapter 13 - Entrepreneurship Development Notes
  

Class 12 Subject-wise Revision Notes

• Class 12 Maths Revision Notes

• Class 12 Physics Revision Notes

• Class 12 Chemistry Revision Notes

• Class 12 Biology Revision Notes

• Class 12 Business Studies Revision Notes

• Class 12 Economics Revision Notes
  

Subject-wise Solutions for Class 12

• NCERT Solutions for Class 12 Maths

• NCERT Solutions for Class 12 Physics

• NCERT Solutions for Class 12 Chemistry

• NCERT Solutions for Class 12 Biology

• NCERT Solutions for Class 12 English

• NCERT Solutions for Class 12 Business Studies

• NCERT Solutions for Class 12 Economics

• NCERT Solutions for Class 12 Accountancy