Class 12th Business Studies Chapter Explaination

Chpater- Staffing

Meaning of Staffing:

Is the process of obtaining, utilizing and maintaining satisfactory & satisfied work force.

Importance of Staffing:
  1. Obtaining competent personnel: As staffing involves process of finding, selecting the most suitable personnel from a huge range of candidates.
  2. Improves productivity: it enables the enterprise to hier the most suitable personnel for a perticular job, leads to improvement in productivity of entire organisation.
  3. Ensures continuous survival and growth of the enterprise: As enterprise is made of its employees, consistent flow of personnel is required for survival and development of organisation.
  4. Helps to ensure optimum utilisation of human resources: Staffing involves proper planning for management of personnel and hence prevent overmanning or underutilisation.
  5. Improves job satisfaction and morale of employees: through proper training, objective assessment and fair reward for their contribution.

Staffing Process:
  1. Estimating Manpower Requirements: It means estimating the number and types of persons required in the organisation. It involves workforce and workload analysis.
  2. Recruitment: Recruitment is the process of searching for prospective employees and stimulating/encouraging them to apply for jobs in the organisation.
  3. Selection: Selection is the process of identifying and choosing the best out of a number of prospective candidates for a job.
  4. Placement and Orientation: Placement refers to the employee occupying the position or post for which he has been selected. Orientation refers to the process of introducing the newly selected employees to their superiors, subordinates and colleagues and familiarising them with the rules and policies of the organisation.
  5. Training and Development: Training is the process of increasing the knowledge, skills and abilities of employees for doing a specific job. Development refers to the learning opportunities designed to help the employees to grow.
  6. Performance Appraisal: Performance appraisal means evaluating an employee's current and past performance as against certain pre-determined standards.
  7. Promotion and Career Planning: in this step the employee is offered promotional and career opportunities based on their performance.
  8. Compensation: Compensation refers to all forms of pay or rewards given to employees.

Component of Staffing:
  1. Recruitment: Process of searching potential candidates and stmulating them to apply for the job.
  2. Selection: It is a negative process of selecting the most suitable candidate from all the alternatives available on the basis of their skills and interests.
  3. Training: Training can be defined as a process of increasing the knowledge, skills and productivity of employees.

Methods of Recruitment
  1. Internal sources:
  2. External sources:

Internal Sources:
  1. Transfer: refer to horizontal shift of job without substantive change in the responsibilities and status of the employee.
  2. Promotion: refer to vertical movement of the job of the personnel by shifting to a position carrying higher responsibility, facilities, status & pay.

Merits of internal recruitment:
  1. Motivates employee: it motivates the employee to improve their performance.
  2. Simplifies the process: since the candidate are already working in the enterprise can be evaluated more accurately and easily.
  3. Tool of training: as the employees are promoted to a position higher than their previous, enables them to procure new skill and knowledge.
  4. Cheaper: enterprise do not need to spend much for recruitment process as the candidates are already working in the enterprise.

Limitations of internal recruitment:
  1. No scope of fresh talent: introduction of employees equipped with latest skill is important as it ensures survival of enterprise in changing, especially technological environment.
  2. Employees may become lethargic: if they are sure of time bound promotion.
  3. New enterprise cannot use: new enterprises already do not have much employee they can use internal recruitment.
  4. Hamper competition: competition should not be hampered that it leads to use unethical ways.
  5. Frequent transfer might reduce the productivity: frequent transfer leads to confusion of work and authority relationship.

External Recruitment:
  1. Direct Recruitment: a notice is placed om the notice-board of the enterprise specifying the details.
  2. Casual Callers: Recruitment of the candidate from the list of the unsolicited (candidates who didn’t got selected due to lack of vacancies) employees
  3. Advertisement: advertising the job vacancies on newspapers, this source id usually used for senior position where wider choice is required.
  4. Employment Exchanges: these are run by the government, suitable for skilled and skilled operative jobs.
  5. Placement Agencies and Management Consultants: these private placement agencies recommend suitable candidates to the enterprise, but charge for their service, suitable for technical & professional jobs.
  6. Campus Recruitment: Many organisations maintain close relation with the universities & institutions to recruit qualified person.
  7. Recommendations of Employees: Candidates introduced by present employees, there background is sufficiently known.
  8. Labour Contractors: these maintains close relation with labourer and they provide unskilled workers.
  9. Advertising on Television: telecasting of vacancies.
  10. Web Publishing: advertising the job vacancies on internet, as internet is becoming common source of requitement these days.

Advantages of External Sources of Recruitment:
  1. Qualified Personnel: external sources attract qualified and trained people.
  2. Fresh Talent: may existing employees are not fulfilling the specifications of the job.
  3. Increase in Competition: introduction of new employees, the existing staff will have to compete with the outsiders.
  4. Wider Choice: as the vacancies are advertised in the public, it allows the enterprise to choose from large number of applicants.

Disadvantages of External Sources of Recruitment:
  1. Dissatisfaction Among Existing Staff: existing employees might feel that their chance of promotion is reduced.
  2. Lengthy Process: it takes longer time, as the enterprise have to advertise it and then wait for the applications.
  3. Expensive Process: a lot of money has to be spent on advertisement and process of application.

Selection Process:
  1. Preliminary Screening: To eliminate unfit job seekers on the basis of the information given by them.
  2. Selection Tests: candidates are tested to measure their certain characteristics.
  3. Employment Interview: Interview is a formal, in-depth conversation conducted to evaluate the applicant's suitability for the job.
  4. Reference and Background Checks: with the help of references given by candidate the information provided is verified.
  5. Selection Decision: From among the candidates who pass the tests, interviews the most suitable candidate is selected.
  6. Medical Examination: Here the it is checked is candidate is physically fit for the job or not.
  7. Job Offer: Job offer is made to those applicants who have passed all the previous hurdles through a letter of appointment.
  8. Contract of Employment: a document confirming appointment & following information Regarding pay, hours of work, duties, leave rules, etc.

Importance of Training to Organisation:
  1. Systematic Learning: With the help of systematic learning one can easily learn any skill.
  2. Greater Productivity: Training introduces personnel to most productive method and perfects their skill.
  3. Develops Future Manager: With the help of training one can learn higher skill and experiences required to become a manager.
  4. Reduces absenteeism: Training boosts personnel's morale and interest towards their work and helps in reducing absenteeism.
  5. Makes personnel more dynamic: Helps personnel to adapt to fast changing environment, as company helps them to learn new skill or methods, through training.

Different modes of training:
  1. On the job training: training in the actual workplace while the employee is actually working.
  2. Off the job training: Training away from the work place.

On the job training:
  1. Apprenticeship Training: The trainee is put under the guidance of a master worker for a prescribed period of time.
  2. Internship Training: a joint programme of training in which educational institutes and business enterprises collaborate. selected candidates carry on regular studies along with work.
  3. Coaching: the superior guides and instructs the trainee, the senior manager or coach takes the full responsibility.

Off the job training:
  1. Vestibule Training: Under this method, the training is conducted away from the actual work with the same materials, files and equipment, required employee have to handle sophisticated machinery and equipment.
  2. Induction Training: Induction training means introducing the selected employee to his superiors, subordinates and the colleagues and familiarising him with the rules and regulations of the organization.
  3. Computer modelling: simulation of work environment by programming a computer to imitate some of the realities of the job.
  4. Case study: Trainees study the cases to determine problems, analyse causes, develop alternative solutions, select what they believe to be the best solution and implement it.