CHAPTER

FIVE
STAFFING
THE ROLE OF HUMAN RESOURCE PLANNING
Human resource planning determines the human resources required by the organization to
achieve its strategic goals. As defined by Bulla and Scott (1994) it is ‘the process for ensuring
that the human resource requirements of an organization are identified and plans are made for
satisfying those requirements’. Human resource planning is based on the belief that people are
an organization’s most important strategic resource. It is generally concerned with matching
resources to business needs in the longer term, although it will sometimes address shorter term
requirements. It addresses human resource needs both in quantitative and qualitative terms,
which means answering two basic questions: first, how many people, and second, what sort of
people? Conceptually, human resource planning should be an integral part of business planning.
The strategic planning process should define projected changes in the scale and types of activities
carried out by the organization. It should identify the core competences the organization needs to
achieve its goals and therefore its skill requirements. But there are often limitations to the extent
to which such plans are made, and indeed the clarity of the plans, and these may restrict the
feasibility of developing integrated human resource plans that flow from them.
Hard and soft human resource planning
A distinction can be made between ‘hard’ and ‘soft’ human resource planning. The former is
based on quantitative analysis in order to ensure that the right number of the right sort of people
is available when needed. Soft human resource planning is concerned with ensuring the
availability of people with the right type of attitudes and motivation who are committed to the
organization and engaged in their work, and behave accordingly. It is based on assessments of
the requirement for these qualities, and measurements of the extent to which they exist, by the
use of staff surveys, the analysis of the outcomes of performance management reviews and
opinions generated by focus groups.
Human resource planning and manpower planning
Human resource planning is indeed concerned with broader issues about the employment of
people than the traditional quantitative approaches of manpower planning. Such approaches,
derive from a rational top-down view of planning in which well tested quantitative techniques are
applied to long term assessments of supply and demand. She notes that ‘there has been a shift
from reconciling numbers of employees available with predictable stable jobs, towards a greater
concern with skills, their development and deployment’.
Limitations of human resource planning

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Human resource planning is said to consist of three clear steps:
● Forecasting future people needs (demand forecasting).
● Forecasting the future availability of people (supply forecasting).
● Drawing up plans to match supply to demand.

AIMS OF HUMAN RESOURCE PLANNING

The aims of human resource planning in any organization will depend largely on its context but in
general terms, the typical aims might be to:
● attract and retain the number of people required with the appropriate skills, expertise and
competencies;
● anticipate the problems of potential surpluses or deficits of people;
● develop a well trained and flexible workforce, thus contributing to the organization’s
ability to adapt to an uncertain and changing environment;
● reduces dependence on external recruitment when key skills are in short supply by formulating
retention, as well as employee development strategies;
● improve the utilization of people by introducing more flexible systems of work.

THE PROCESS OF HUMAN RESOURCE PLANNING

The process of human resource planning is not necessarily a linear one, starting with the business
strategy and flowing logically through to resourcing, flexibility and retention plans. It may be
circular rather than linear, with the process starting anywhere in the cycle. For example, scenario
planning may impact on resourcing strategy which in turn may influence the business strategy.
Alternatively, the starting point could be demand and supply forecasts which form the basis for
the resourcing strategy. The analysis of labour turnover may feed into the supply.
The process of human resource planning includes
● Business strategic plans: defining future activity levels and initiatives demanding new skills.
● Resourcing strategy: planning to achieve competitive advantage by developing intellectual
capital – employing more capable people than rivals, ensuring that they develop organization
specific knowledge and skills, and taking steps to become an ‘employer of choice’.
● Scenario planning: assessing in broad terms where the organization is going in its

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 Environment and the implications for human resource requirements.
● Demand/supply forecasting: estimating the future demand for people (numbers and skills),
and assessing the number of people likely to be available from within and outside the
organization.
● Lab our turnover analysis: analyzing actual lab our turnover figures and trends as an input to
Supply forecasts.
● Work environment analysis: analyzing the environment in which people work in terms of the
Scope it provides for them to use and develop their skills and achieve job satisfaction.
● Operational effectiveness analysis: analyzing productivity, the utilization of people and the
scope for increasing flexibility to respond to new and changing demands.
MEANING OF STAFFING
Staffing refers to the managerial function of employing and developing human resources for
carrying out the various managerial and non-managerial activities in an organization. This
involves determining the manpower requirement, and the methods of recruiting, selecting,
training and developing the people for various positions created in the organization.

IMPORTANCE OF STAFFING
All of us know that it is the people in every organization who run the show successfully. For
example, if you do not have good salesman you cannot sell well even if your product is good.
Similarly, you may have the best quality raw materials, machines etc. but the quality of the
product is not assured unless, you have good workers engaged in the production process. Staffing
thus, as a function, is very important as it is through this process that we get right persons for the
organization and ensure that they stick to the organization. The benefits of good staffing are as
follows.
(a) It helps in getting right people for the right job at the right time. The function of staffing
enables the manager to find out as to how many workers are required and with what
qualifications and experience.
(b) Staffing contributes to improved organizational productivity. Through proper selection the
Organization gets quality workers, and through proper training the performances
level of the workers can be improved.
(c) It helps in providing job satisfaction to the employees keeping their morale high. With
proper training and development programmes their efficiency improves and they feel
assured of their career advancements.
(d) Staffing maintains harmony in the organization. Through proper staffing, individuals

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 are not just recruited and selected but their performance is regularly appraised and promotions
made on merit. For all these, certain rules are made and are duly communicated to all
concerned. This fosters harmony and peace in the organization
PROCESS OF STAFFING
The process of staffing starts with ascertaining the required number of various categories of
employees for the organization. This is known as manpower planning. It decides the kinds of
staff and the number of staff required for the organization. This is done through several methods
like job analysis, workload analysis, etc. Thus, the various steps involved in the process of
staffing are as follows.
(a) Manpower Planning
(b) Job Analysis
(c) Recruitment
(d) Selection
(e) Placement
(f) Induction
(g) Training and Development
(h) Performance Appraisal
(i) Compensation
(J) Promotion and Transfer
1. MANPOWER PLANNING
Manpower planning refers to the process of estimating the manpower requirement of an
organization. While estimating the manpower requirement, the management generally keeps in
mind the available infrastructure including the technology, production schedule, market
fluctuation, demand forecasts, government’s policies and so on. It tentatively decides the kinds
of staff as well as the number of staff needed for the organization. The focus of the manpower
planning is to get right number of qualified people at the right time.
2. JOB ANALYSIS
In the context of recruitment, one must be conversant with another important aspect of
manpower planning viz, job analysis, which is a pre-requisite for any recruitment exercise. The
job analysis helps in determining the qualifications, skills and experience required for various
categories of employees. It involves:
(i) identification of each job in terms of duties and responsibilities, (called job description)
(ii) Determining the abilities and skills that are required for performing the job (called job
specification).
3. RECRUITMENT
Suppose you want to open a restaurant. After planning and organizing you are aware of the
various job positions that are required to be filled up. Let us say, you have assessed your
requirement for a general manager, a chef, an accountant, and many other staff for home delivery
of foods. Possibly, you have a list of persons interested to join your restaurant. For

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example, your uncle has promised you to provide an experienced general manager. The manager
of the bank from where you have taken loan has referred an accountant to you. One of the chief
cooks of a reputed hotel has already approached/talked to you to join your restaurant as a chef. In
addition to all these, you know that there is an office that can provide you people of your
requirement by charging a fee, whenever you ask for it.

You also know that an advertisement in the newspaper can help you in getting applications from
many people. While engaging yourself into all these activities you are basically trying to make a
pool of suitable/interested applicants for the job. In other words you are recruiting the staff for
your business. The term recruitment is often used to signify employment. It is true that normally
when we say we have recruited such and such persons; it signifies that we have employed them.
But as a part of staffing function, the term recruitment has limited scope. It just refers to one of
the initial steps in employment of people i.e., searching for suitable candidates for the
various job positions to be filled up from time to time in the organization. Thus, recruitment is
the process of finding and attracting suitable applicants for employment.
SOURCES OF RECRUITMENT
Having determined the qualification and experience required for various jobs involved, one has
to search for the suitable persons and receive their application. For this purpose one has to have
an idea as to where such persons are available. In other words, one must be aware of the sources
of recruitment before publicizing the specific staffing needs and induce the suitable persons to
apply for the job positions involved. These sources can be internal and external.
(A) Internal Sources: In any business, existing employees expect that they will have chances of
promotion and will be considered for higher positions before outsiders are considered. Managers
therefore may promote and transfer some of the existing employees to fill the vacant positions.
The advantage of internal recruitment is that it is easier for managers to fill vacancies as they are
conversant with the abilities and skills of their subordinates and have records of their
performances. Employees also feel happy as their work performance is recognized by
management through promotion. However, there is one major drawback of recruitment through
internal sources i.e., the organization is deprived of the benefit of inducting fresh blood into its
system.
(B) External Sources: All vacancies cannot be filled up from within the organization. Existing
employees may lack the required skill, initiative and qualification needed for the jobs involved.
Hence managers have to recruit some persons from outside the organization. Not only that the
external recruitment provides a wide choice from among a large number of external candidates
from which employees may be recruited. The workers and office employees at the lower level are
often recruited from outside the organization. The various external sources of recruitment are as
follows:

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(a) Media Advertisements: You must have seen advertisements in newspapers about vacancies
in organizations. The advertisement contains details about the job, its nature, the qualification
required to do the job, how to apply, etc. This is a very popular medium of advertising. The job
advertisements are also given in magazines, specialized employment magazines like
Employment News. Now-a-days we also commonly find such advertisements in various
electronic media like television and Internet. Such advertisements normally get a very good
response from the prospective candidates.
(b) Employment Exchanges: In India, employment exchanges have been set up by the
government for bringing together job-seekers and employers who are looking for employees.
Those who are in search of employment get themselves registered with the local Employment
Exchanges which keep a record of all such persons in detail who require help in finding jobs. The
employer informs about the vacancies to the nearest Employment Exchange. The Employment
Exchange, in turn, identifies the names of the qualified employment seekers already registered
with it, and forwards them to the employer for consideration. Thus, if you are seeking a job after
passing the senior secondary examination, it would be better if you get yourself registered with
an Employment Exchange. It may forward your name to the prospective employers keeping in
view the suitability of the job as per your qualifications.
(c) Educational Institutions: Now-a-days, companies/big organizations maintain a close liaison
with the universities, vocational institutes and management institute for recruitment of their
staff. As and when the need arises, the companies send one or more of their senior executives to
the institutions of repute imparting such professional/technical education to students. These
executives take the interview of the interested candidates and select the suitable candidates as per
their requirement. This process is popularly known as campus interview and is found to be an
effective source of recruitment of managers, engineers, technicians etc. for many companies on a
regular basis.
(d) Unsolicited Application: Those looking for jobs often apply on their own initiative. They
assume that certain vacancies are likely to arise, and apply without references to any job
advertisement. Managers keep a record of such applications and contact the suitable candidates
when they need them.
(e) Recruitment at the Factory gate: This is found mainly in case of factory workers to be
recruited on daily wages. Such workers gather in the morning at the factory gate to serve as
casual workers. Very often existing regular employees go on leave, and their vacancies are filled
up by recruitment at the factory gate. These casual workers having served in the factory for some
time may be considered for regular employment at some stage.
(f) Referrals: Quite often the management gets references about interested workers from
different sources like workers unions, previous employees, existing employees, clients of the
organization etc. These sources are important because their recommendations are made by
people who are associated with the organization and are fully conversant with its requirements.

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Sometimes we also receive recommendations from our friends and relatives to employ persons
known to them. But one should be very much cautious while considering such recommendations.
(g) Private Employment Agencies: In urban areas, number private organizations have started
functioning as employment agencies. These agencies register with them the names of the
individuals who are seeking employment and try to arrange job interviews for such candidates.
Companies often get in touch with such agencies to provide them the details of suitable
candidates for various jobs.

4. SELECTION
When an adequate number of applications/names of interested candidates have been collected
through the recruitment exercises the selection process starts. Selection refers to the process of
choosing the most suitable person from among the list of interested candidates. It involves going
through the qualification and experience of all candidates and matching them with the
expectation for the job so as to decide on the most suitable ones for the job. The entire process
goes through a number of steps which may be called as selection procedure.
SELECTION PROCEDURE
As stated above, the selection procedure consists of a number of steps in logical order to
identify the candidates who are to be finally appointed. These steps are :
(a) Screening the applications
(b) Holding tests
(c) Selection interview
(d) Checking references
(e) Medical examination of the candidates
(f) Issue of appointment letter

5. PLACEMENT
If the selected candidate decides to join the organization, he/she has to report to the concerned
authority and formally joins the organization by giving his consent in writing. Then he/she is
placed to perform specific job. Thus, placement refers to selected candidate’s joining the
positions in the organization for which they have been selected. The appointment of every
candidate is followed by a record of particulars of employment. Such records is properly
maintained and described as employment record. It serves a useful purpose on many occasions
like selection of employees for training, promotion, increments etc.
6. INDUCTION
Induction is the process of introducing new employees to the organization. The new employees
should know under whom and with whom he/she is to work, get acquainted and adjusted to the
work environment, get a general idea about the rules and regulations,

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Working conditions etc. Usually the immediate supervisor of the new employee introduces him
to his work environment. A proper induction programme is likely to reduce his anxiety on how
to cope with the work and how to become part of the organization and helps in development of a
favorable attitude towards the organization and the job
7. TRAINING AND DEVELOPMENT
Helping the employees to improve their knowledge and skill so as to be able to perform their
tasks more efficiently is known as training. It is an organized activity for increasing the
knowledge and skills of people for a specific purpose. The term ‘development’ refers to the
process of not only building up the skill and abilities for specific purpose but also the overall
competence of employees to undertake more difficult and challenging tasks. It is generally used
with reference to the training of managers and executives. Training is necessary for new
employees as well as the existing employees for improving their performance at work. For new
employees, training is necessary to help them get acquainted with the method of operation and
skill requirement of the job. For existing employees, training at periodical intervals is helpful for
learning better ways of doing the work, and also as and when they have to undertake new jobs.
Thus, training helps employees to improve their knowledge and skill and make them perform
their tasks more efficiently. It also helps them in promotion and improves their attitudes and
confidence levels.
METHODS OF TRAINING
There are different methods of giving training to the employees which can be divided into two
broad categories.
(1) On-the-Job methods, and
(2) Off-the-Job methods.
1. On-the-Job methods: In these methods, the employees learn about their jobs while doing the
work duly assisted by their supervisors or seniors. These methods encourage self-learning
through practice. Job instruction or coaching, and job rotation, learning while working as an
assistant to a senior, understudy positions, temporary promotions are some of the common
methods of on-the-job training.
2. Off-the-Job methods: These methods involve training employees away from the work place
so that experts may conduct the training and employees are free from immediate pressure of
completing the jobs at hand. Lectures with demonstration, conferences, case discussions, video
shows and films are some of the common methods used as off-the-job training methods. Then,
there is another off the job method of training called vestibule training. The vestibule training
refers to the training in specially designed workshops in which an attempt is made to duplicate as
closely as possible the actual condition of the work place. In such workshops a large number of
employees can be trained in a relatively short period of time.

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8. PERFORMANCE APPRAISAL
In simple words, performance appraisal means judging the performance of employees.
Specifically, it means judging the relative abilities of employees at work in a systematic manner.
This enables managers to identify employees who are performing the assigned work
satisfactorily, and those who are not able to do so, and why. To be fair, performance appraisal
needs to be carried out using the same methods and keeping in view uniform standards of work.
Generally it is the responsibility of supervisors to carry out performance appraisal of their
subordinates, and report it to their own superiors. He may also have to identify the causes of the
performance especially if it has fallen short of the expected performance. The standard of
performance or the expected level of performance of an employee on a job forms the basis of
judging how well the employee has performed, and whether one employee is more efficient than
the other in doing a similar job. The yardstick placed may be the desired quantity of output, the
quality of work done, minimization of wastage of materials caused in the process of work etc.
The choice depends upon the type of job involved. However, where quantity or number of units
produced or wastage of materials form the basis of appraisal, it is likely to be more accurate. On
the other hand, quality of work done may be difficult to measure and hence performance
appraisal may not be very accurate.
9. COMPENSATION
Compensation is one of the most important factors influencing relations between management
and the workers. No organization can attract and retain qualified employees without offering
them a fair compensation. The term ‘compensation’ refers to a wide range of financial and non
financial rewards to the employees for services rendered to the organization. It includes wages,
salaries, allowances and other benefits which an employer pays to his employees in consideration
for their services. Compensation may be divided into two categories:
(a) Base/primary compensation.
(b) Supplementary compensation.
Base or primary compensation is a fixed amount paid every month to an employee. It includes
wages, salary and allowances paid to an employee irrespective of his performance.
Supplementary compensation refers to the compensation paid to the employees to motivate them
to work more efficiently. It is also known as incentive compensation. The incentives may be
monetary or non-monetary. The monetary incentives include bonus, commission sales, or profit
sharing plans. The non-monetary incentives, on the other hand, include cordial relations with the
supervisor, assignment of challenging jobs, recognition etc. Such incentives help the employees
to sustain interest in the job and motivate them to work hard. They also provide job satisfaction.
10. PROMOTION AND TRANSFER
When an employee is assigned a job involving greater responsibilities, more pay, higher status
and prestige than his/her present job, it is known as promotion. Thus, promotion

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refers to the advancement of an employee to a higher level or position. The main purpose of
promotion is to make fuller use of the abilities of a person and also increase his job satisfaction.
The basis of promotion may be seniority in service or merit, that is, superior abilities of the
employees or it may be seniority and merit, that is, a merit being the same, one who is senior, is
considered for promotion. When the performance of an employee is not satisfactory and it cannot
be improved, he may be assigned a job of lower rank carrying lower status and pay. This is
known as ‘demotion’. Transfer refers to a type of job change where any employee is assigned a
different job of the same rank and pay, or when an employee is assigned a similar job in another
unit of the firm. Thus, transfer does not usually involve any increase in pay or a superior status. It
may be done simply to enable the employee to gain wider experience, or to give him greater job
satisfaction, or to balance the requirements of staff in different units.

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