CHAPTER - FIVE

STAFFING (HUMAN RESOURCE MANAGEMENT)

1.1. An Overview of The Staffing Function
A many large organizations delegate the management of human resources to the personnel
department, sometimes called the industrial relations department. It may be charged with the task of
assessing future labor needs, acquiring and developing personnel processing payroll, handling
promotions and terminations and other things. The modern person net department is an out growth of
the earlier hiring offices, which performed only the limited function of acquiring new personnel.
In some organizations, the personnel department is on an equal level with other major departments
such as finance and marketing. The personnel department is generally a service department which
supports other departments and services their needs.
Some of the important services considerations are administering the salary and wages progream,
human resources planning, affirmative action programs, medical and dental insurance, credit union
functions, and collection of union dues.
Staffing Defined (The Right Person In The Right Job)
Staffing is the process of filling jobs with appropriate persons. It is filling and keeping filled
positions in the organization structure through identifying workforce requirements, inventorying the
people available recruiting, selecting, placing, promoting, appraising or otherwise developing both
candidates and current job holders to accomplish jobs efficiently & effectively.
The staffing function can be viewed as consisting of a series of steps that managers perform in order
to provide the organization with the right people in the right positions.
The Legal Environment of Staffing
The staffing process of an organization is influenced by the legal environment. Two major
legislation issues can be mentioned in this regard: equal employment opportunity and affirmative
action.
i) Equal employment opportunity:- Employment choices made on the basis of race, color, religion,
sex, age, or national origin are prohibited it is unlawful for an employer to do either of the
following:
- To fail or refuse to hire or to discourage an individual because of race, color, religion, sex,
age, or national origin.
- To limit, segregate, or classify his/her employees or applicants for employment in any way that
would tend to deprive individuals of employment opportunities because of race, color, religion, sex,
age or national origin.

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 The purpose of the legislation is to prevent that is overt (purposely not hiring or advancing) and
covert (resulting from employment procedures, not of intentional practice)
ii) Affirmative action:- Affirmative action goes beyond equal employment opportunity. It requires
an employer to make an extra effort to hire and promote those in a protected minority. The
purpose of affirmative action is to eliminate the present effects of past discrimination.
1.2. The Process of Staffing In An Organization
The staffing process can be a series of steps that are formed on a continuing bases to keep the
organization supplied with the right people in the right positions at the right time. The eight steps in
the process are the following
1.2.1. Human Resource Planning (HRP)
The first phase in the acquisition and staffing process is the development of a plan specifying the
number and types of people that will be needed in the organization. This requires an assessment of
the number and types of jobs to be done and projections of the volume of goods and services to be
offered and the available capital. Estimates of these elements hinge upon projected sales and demand
for goods and services to be produced or marketed by the enterprise.
A basic personnel plan is prepared which specifies the number of individuals assigned to each
department and the amount of management staff required. Often a detailed report is prepared listing
the number of jobs and work stations, together with expected turnover, promotions & terminations.
Human resource planning is accomplished through the following steps.
a) Job design:- A major element in the personnel plan is the definition and description of each job
in the organization. It is up to line management to specify which activities and responsibilities
are assigned to each employee. Then job descriptions and specifications are derived from job
design and analysis.
b) Assessment of the internal and external factors :- Internal factors such as current and expected
skill needs, vacancies and departmental expansions or reductions as well as factors in the
external environment like labor market, availability of skilled human resource and pay levels &
rates need critical assessment.
c) Forecasting:- The primary emphasis of human resources forecasting is on the personnel in
various categories that the organization will need in order to maintain its growth and to exploite
its future opportunities.
d) Human resource inventory (audit):- Once the forecasts are completed and the manager has
established job descriptions, graded and ranked each one, and established compensation, an
inventory must be made of current staff. The purpose of a human resource inventory is to

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 determine the exact number and types of individuals already employed by age, years of service,
promo ability, and the like.
This human resources pool is used for staffing future positions and promotions. A thorough
inventory avoids hiring and training outside individuals. Where adequate human resources are
already available in the organization.
Human Resources Acquisition
A significant amount of time is spent in acquiring new personnel. The personnel acquisition process
involves recruitment activities, testing, screening, selection, and orientation procedures. Most large
organizations follow a systematic procedure from recruitment of new personnel to orientation on the
job
1.2.2. Recruitment:
The recruitment function consists of locating candidates for potential employment with the
organization. Recruitment is conducted in a variety of ways prospective employees can be reached
through news paper advertising, help wanted signs, employment agencies, radio and Tv
advertisements, college campus recruiting, drives, personal contact, and state departments of
employment.
The purpose of recruitment activity is to develop a stream of candidates seeking employment. These
potential employees are given information about the firm and its hiring and promotion activities.
Recruiters attempt to locate individuals who have the ability, aptitude, and experience to fill various
openings.
Sources of Recruitment (Applicants)
There are two main sources of recruitment, viz.
1) Internal sources:- Here, recruitment is made from the existing employees with in the organization
usually for promotion purpose. Internal recruitment can result in a number of advantages among
which the following are common.
- Candidates are already familiar with the organization and don't require orientation.
- Recruiters already know about the candidates.
- Recruitment costs are minimum.
- Motivates upward mobility opportunities.
- Encourages sense of belonging ness.
Internal recruitment has also the following limitations.
- Limits the possibility of getting new potential
- Less competent applicants
- Highly influenced by interpersonal relationships

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 - Expensive training for skill development is required
2) External sources:- Is made from labor market from local or international markets. It is often
effective for experts needed for executive positions or specialized technical area.
Advantages
- Give rise to competitive selection
- Candidates may have broader experience
- Bias can be minimized (less discrimination)
- Candidates may be familiar with competitors
Disadvantages
- Probability of fallacy of information
- Immoral to internal candidates
- Increases orientation & recruitment costs
1.2.3. Selection:
The last in the pre-employment sequence is the actual selection of applicants. The line manager
reviews each applicant's test results, references, and letters of reference (recommendations) in order
to reach the decision. The objective is to hire the most qualified person from the pool of available
applicants.
Acquiring employees who lack the necessary skills or ability can be costly. Unqualified people may
require extensive training to prepare them for the job or may make expensive mistakes. Applicants
who are over qualified can also be costly because the candidate may not remain on the job for any
length of time or may hope improve income.
Steps in selection process
1) Completion of a formal application form :- Through this information is gathered about the
applicant
2) Initial screening interview:- This is used to make a quick evaluation of the applicant's suitability
for a particular job.
3) Testing:- Its purpose is to measure applicant's job skills and ability to learn on the job.
4) Back ground investigation:- This checks truthfulness of applicant's application form. further
information will be sought from one or more of the candidate's references or previous employers.
5) In depth selection interview:- This finds out more about the applicant as an individual.
6) Physical examination:- Medical reports from a qualified doctors or recognized medical center.
7) Decision to hire or reject:- If an applicant successfully passed through the six steps and continue
to indicate a desire for employment, a job after may be made, otherwise he/she can be rejected.
1.2.4. Socialization and Orientation

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After being hired, the new employee is to be introduced with the colleges, supervisors, subordinates
and employees in general. This is called socialization. Again, the new employee is assigned to a
supervisor who will orient her or him to the new job. Job orientation involves informing the
employee of duties and responsibilities. The employee may be given literature or presentations on
company policy, fringe benefits, medical and health plan options, the credit union, and other
available benefits.
1.2.5. Training and Development Function
Training is familiarizing the new entrant with the job and it can take three forms.
1) On - the - job training:- this form of training is done by experienced employees while the new
employee is at work. It may be in the form of coaching, special assignments or job rotation.
2) Off - the - job training:- This takes place outside the work environment in the form of class
room lecture, workshop, seminar, conference etc. Thus this method involves information
presentation, information processing and simulation.
3) Vestibule - Training:- It is a compromise between on - the - job training and off - the - job
training in which an individual trains through theory and practice simultaneously.
Development refers to skill upgrading to existing employees to higher status.
1.2.6. Performance Appraisal
Once settled on the job, the employee's progress must be monitored. This involves periodic
evaluation of performance on the job as well as acceptance by fellow workers. Post employment
evaluation is performed after a few days on the job or at periods ranging from several weeks to many
months after hiring.
This step compares an individuals job performance against standards or objectives developed for the
individual's position. If performance is high the individual is likely to be rewarded, and if
performance is low some corrective action might be arranged to bring the performance back in line
with desired standards.
1.2.7. Replacement (promotion, demotion) transfer or separation.
The several steps in the staffing process conclude with replacement, the act of removing a person
from an assigned job. Replacement relates to the management of promotion, transfer, demotion and
separation.
a) Promotion:- This is the outcome of higher result in performance appraisal. Promotion is a change
with in the organization to a higher position with greater responsibilities and requiring more
advanced skill. It usually involves higher status, authority and pay.

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b) Transfer:- Is usually the lateral movement of employees for the same position, authority and
responsibility, pay and duty. This may be for organizational purpose or reduction of employee
bordem.
c) Demotion:- This is the consequence of poor performance results. It is the situation where an
employee is placed to lower position, salary, status and responsibility in the organization
hierarchy.
d) Separation:- This is the terminal point in which the relationship between the employee and
organization is terminated. It can arise by the need of either party (the employee or organization).

CHAPTER - SIX
DIRECTING/LEADING

1.1. Leading: An Overview

Leadership is an important and necessary skill for achieving individual, group, and organizational
performance. Managers, whether they are chief executive officers or line supervisors, influence
attitudes and expectations that encourage or discourage performance, secure or alienate employee

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commitment, reward or penalize achievement. Despite the growth of large, impersonal
organizations, people still relate to leaders. We see this in our daily lives, and we make judgments
about the leaders of our business, governmental, and educational organizations. Leadership does
make difference.
 Efforts to analyze effective leadership have focused on three general areas:
1) Personal characteristics of leaders
2) The behavior of leaders and
3) The situation in which leaders are found
Leadership involves other people; therefore, where there are leaders, there must be followers.
Leadership can arise in any situation where people have combined their efforts to accomplish a task.
Thus, leaders may or may not be managers. Within the organization, informational groups develop,
and with in those groups are people who influence the behavior of other group members. Such
people are informal leaders.
Definition of Leading/Directing
According to Keith Davis, Leadership is a part of management but not all of it Leadership is the
ability to persuade others to seek defined objectives enthusiastically. It is the human factor which
binds a group together and motivates it toward goals.
Management activities such as planning, organizing, and decision making are dormant cocoons until
the leader triggers the power of motivation in people and guides toward goals.
Leadership is not an easy term to define precisely. We define leadership as the ability to influence
through communication the activities of others, individually and a group, toward the
accomplishment of worth while, meaningful, and challenging goals. First, this definition indicates
that one can not be a leader unless there are people to be led. Second, leadership involves the
practice of influence skills. The use of these skills has a purpose, to accomplish goals. Finally, an
objective of leadership is to bring about influence so that important goals are achieved.
To sum up, we are going to define leadership as follows:
Leading is defined as the process of influencing people so that they will contribute to organization
and group goals. It is the process of directing human resources effort toward organizational
objectives. Leadership is the process of influencing people so that they will strive willingly and
enthusiastically toward the achievement of group goals.
Power: A Leadership Source
Power is an essential leadership source. Managers use power to achieve the interpersonal influence
through which leadership is ultimately exercised. Power is a force or capability that, when
successfully activated, makes things happen.

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 Sources of Power
1) Legitimate Power:- The capability to control other people by virtue of the rights of office.
Legitimate power is formal authority, the right to command and to act in the position of
managerial responsibility.
2) Expert power:- Is the capability vested because of specialized knowledge. Expertise derived
from the position of technical knows how or information pertinent to the issue at hand, which
others don't have. Reward, coercive and referent power is also another sources.
1.2. Elements of Leading
Leading is the combined effort of three concepts; these are: Leadership, Motivation and
communication. These are known as elements of leading.
1.2.1. Leadership Approaches (Theories)
1. Trait theory (Great man Theory)
The earliest attempts to define leadership centered about the traits possessed by successful leaders.
The trait theory holds the leadership springs from the internal attributes possessed by leaders.
According to this view, leadership is a function of a cluster of distinguishing qualities within the
leader. These traits are seen as in born and natural to some people. They are unique to individuals,
unlike behavior which is learned. This theory supports the born leader philosophy.

Among the traits possessed by leaders are high intelligence, maturity, an understanding of human
relations, motivation, and the ability to work well with people. Charisma and self confidence are
other traits found in successful leaders. Charisma is defined as a personal, some what magical
quality which elicits a popular loyalty and enthusiasm. According to this theory successful leaders
are born not made.
2) Behavioral theory: A second major approach to leader ship is the behavioral school. According
to this rationale, leadership is a function of the individual, rather than any internal traits. This
behavior consists of attitudes and actions which result in other individuals' becoming followers. In
essence, a person who acts like a leader becomes a leader.
One of the earliest behavioral theorists was Kurt Lewin. His work, expanded up on by others,
described a group of leadership styles. In his writing Lewin noted that leaders exhibit
democratic, authoritarian, or laissez - fair leadership styles.
i) Authoritarian leadership style:- Authoritarian leaders exhibit behavior which places the
major decision making power in the hands of the leader-there is little or no participation by
followers.

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 ii) Democratic style:- This leadership style evokes participation from followers. The decision -
making responsibility is shared between the leader and subordinates. Groups which expect
to participate in the decision making process far better under this style of leadership than
under authoritarian or laissez - faire leadership.
iii) Laissez - faire style:- Under this style of leadership, the responsibility for decision making
is shifted to followers. Laissez - faire leaders do not take a strong stand on rules, nor do they
insist that subordinates follow their direction. A "hands off" style is exhibited where the
leaders goes along with the group.
3) Contingency leadership:- The third major school in leadership theory is the contingency school
of thought. This view of leadership emerged from the work of tannenbaum and Schmidt, and was
brought sharply in to focus by Fred Fiedler. Prior to Fiedler's research, most management
theorists assumed that leadership was either a function of the traits with in the leader, or the
result of the leader's behavior. Fiedler's work proved that the situational factor played a much
more important role than had previously been realized.
According to Fiedler, there are three major elements which affect the favorableness of a situation
and the ability of the manager to work well. These include the task structure, the leader - member
relations, and the leader's position power.
1.2.2. Motivation
Motivation is concerned with "why?" of human behavior. It consists of all those inner striving
conditions described as wishes, needs, drives, and desires similar forces. It is an inner state that
activates or moves a person toward a goal. To say that the managers motivate their subordinates is
they do things which they hope will satisfy these drives and desires and induce the subordinates to
act in a desired manner.

Theories of Motivation
1) Abraham Maslow's Hierarchy of Needs Theory
Maslow sow how needs in the form of hierarchy, ascending from the lowest to the highest, and he
concluded that when one set of needs is satisfied, this kind of needs ceases to be a motivator. This
means a satisfied need is no more a need. He postulated that as one need is satisfied the need at the
next higher level emerges.

Self
actualization

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 Esteem needs

Social needs

Security needs

Physiological needs

Maslow's need hierarchy

The basic needs of human being placed by Maslow in an ascending order of importance are the
following:
i) Physiological needs:- these are the basic needs for sustaining human life it self such as food,
water, shelter, sex and rest. Maslow took the position that until these needs are satisfied to the
degree necessary to maintain life, other needs do not motivate people.
ii) Security needs:- These are the needs to be free of physical danger and the fear of loss of a job,
property, food or shelter.
iii) Social or Affiliation needs:- Since people are social beings they needed to be loved and be
accepted by others. These are needs for belonging, association, acceptance, friendship and for
love.
iv) Esteem needs:- According to Maslow, once people satisfied their need of belonging-ness they
tend to want to be held in esteem both by themselves and by others. This kind of need produces
such satisfaction as power, prestige, status, and self-confidence.
v) Self - actualization:- Maslow regards this as the highest need in the hierarchy. It is the desire to
become what one is capable of becoming - to maximize one's potential and to accomplish
something.
The main limitation of the Maslow's hierarchy of needs theory is the individual can by pass the
hierarchy and this was over looked.
2) Hertzberg's Two Factor Theory
Frederick Hertzberg studied groups of several hundred engineers and people in other occupations to
determine which elements motivated people to high out put and performance. His research indicated
that two important factors were at work. These were labeled motivation factors and hygienic factors.
i) Motivation factor (satisfiers):- In every job there are elements which are motivational in nature.
Those elements are intrinsic to many jobs and produce feelings of achievement, satisfaction, self

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 - worth, and responsibility. Hertzberg's motivation. However their absence doesn't create
dissatisfaction.
ii) Hygiene factors:- For every job there is a group of related factors which deal with the context or
condition under which the job is done. According to Hertzberg, there are important elements,
since they can achieve a negative effect on the performance. Examples of hygiene factors are
job security and benefits, company policies, the attitude of the supervisor and pay. They are
generally referred as dissatisfies.
3) MC Gregor's X and Y theories
Douglas MC Gregor's theory of motivation is based up on attitudes of managers. According to MC
Gregor, two assumptions of human motivation are found among managers. These are opposing
views which provide in sights in to motivation because they challenge accepted assumptions of
human behavior:
a) Theory X:- Under this assumption:
 Human beings exhibit a basic dislike for work and the expenditure of effort
 People must be coerced, controlled, and threatened in to producing.
 Subordinates must continually be pressured in to working.
 Further, it is assumed that the average human being doesn't want to be self-directed and prefers
to be directed by others. And
 More value is placed up on security than up on taking responsibility.
b) Theory Y:- Under this assumption:
 Work is as natural as play
 The human organizes not only accepts the need to work, but actually seeks it
 People do not need to be controlled or coerced in to action. Instead, they prefer self - direction,
and under proper conditions, seek responsibility.
 The need for achievement in most people is greater than their need for security.
 A high degree of imagination and creativity is found in most people and is not limited to a gifted
few.
4) Expectancy theory:- Another theory which has greatly influenced thinking an motivation is the
expectancy theory, articulated by victor vroom. According to vroom, there is a direct relationship
between the level of motivation, the importance of a goal, and the expectation of achieving it.
Vroom stated this relationship in a basic formula.
Motivation = expectancy X valence.
Expectancy is a person's estimate of the chances that a desired goal can be achieved. Valence is
the value or worth that a person places up on the goal.

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1.2.3. Communication
Communication is defined as the transfer of information from the sender to the receiver, with the
information being understood by the receiver. It is the exchange of idea among people by use of
words, letters, symbols or non-verbal behavior. Success in management is conditioned to a great
degree by the ability of the manager to understand the manager. Gaining acceptance of policies,
willing the cooperation of others, getting ideas and instructions clearly understood and bringing
about changes in performance are dependent up on effective communication.
The Communication Process
Communication takes place through a series of steps. These are:
i) Sender (Source):- is the person who wishes to communicate an idea, action, concept, or thought
to another person. The sender must translate the idea in to symbols or sign which stand for the
idea or message.
ii) Idea (message):- This is the subject matter of communication that is opinion, facts, suggestions
etc. need to be transferred from sender to receiver.
iii) Encoding:- is the process of converting an idea, thought or action in to words, symbols, facial
gestures, or body movements which stand for or represent the idea being transmitted. Symbols
and ideas have different meaning to different people and should be defined and selected
carefully.
iv) Medium (channel):- Is the means by which a message is transmitted. Media include verbal and
non verbal communications such as letters or memos, signals, facial expressions, signs and so
on.
v) Receiver:- The receiver is the message. The receiver must convert the message and symbols in
to meaningful ideas which accurately reflect the concepts in tended by the sender.
vi) Decoding:- decoding is the process by which symbols are converted back in to ideas, thoughts,
or actions in the mind of the receiver. The decoding process is essential to communication and
must be done with as much care as encoding if the accuracy of the initial message is to be
preserved. The more accurate the decoding, the higher quality the final translation.
vii) Feed back: Is the reversal of the communication process in which a reaction to the sender's
message is expressed. Feed back is a response sent back from the receiver to the sender.
Types of Communication
Communication can be classified using different basis. The following are the common basis for
classification.
a) On the basis of relationships between the concerned parties.

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 i) Formal communication:- This type of communication follows the chain of command
established by an organization's hierarchy of authority. Members of the organization are
supposed to communicate with each other as per the channels laid down with the structure.
ii) Informal communication (the grapevine):- This is also known as unstructured
communication. It functions out of the formal channel and does not adhert to the
organizations hierarchy of authority.
b) On the basis of its flow or direction
i) Down ward communication:- It flows from higher level of management in the hierarchy to
the lower level of the organization. The purpose here is to communicate policies, procedures,
programs, orders etc to subordinates.
ii) Up ward communication:- Involves messages flowing from lower to higher levels in an
organizations hierarchy of authority. These are in the form of reports, suggestions, complains
etc.
iii) Lateral communications:- Includes horizontal flow of information with people on the same or
similar organizational levels and diagonal flow with persons at different levels who have no
direct reporting relationship.
c) On the basis of methods of communication used
i) Verbal communication (Written or oral):- which can be vocalized.
ii) Non-verbal (gesture, posture, eye contact, ridding etc) :- which can be recognized but not
vocalized.
d) On the base of means (used)
i) Written communication
ii) Oral communication

Barriers to Effective Communication

It is not always easy to communicate effectively. There are many problems that affect the
transmission of messages and create misunderstanding. These constraints are named as barriers of
communication. These barriers include:
 Noise
 Semantic distortion
 Absence of feed back
 Receiver back ground
 Poor listening
 Status effects and

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 Pure choice or use of communication channels
Principles for Effective Communication
1) Use short and direct line of communication
2) Use direct and common words that can be easily understood
3) Give the right amount of information
4) Information must be given to the right people at the right time
5) Use common language
 Be a good listener.

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