staffing.pdf

Management of Human Resources at INFOSYS STAFFING “Our assets walk out of the door each evening. We have to 6...

Management of Human Resources at INFOSYS STAFFING “Our assets walk out of the door each evening. We have to 6 CHAPTER L E A R N I N G make sure that they come back the next morning” (as stated OBJECTIVES by Narayana Murthy former, CEO of INFOSYS.) At a time when organisations are debating the strategic After studying this importance of their human resources, Infosys, a consulting and chapter, you should be software services organisation, includes its human resources able to: on its balance sheet to affirm their asset value. The rationale for this is as follows: “The long term success of a company n define staffing; is usually examined on certain financial and non-financial n establish its parameters. Human resources are among these new non- financial parameters that challenge the usefulness of evaluating relationship with corporate success solely on traditional measures. Human Human Resource resources represent the collective expertise, innovation, Management; leadership, entrepreneurial and managerial skills endowed in the employees of an organisation.” n state the need and As a knowledge intensive company, Infosys recognises importance of staffing; the value of its human assets in maintaining its competitive n describe the steps in position. It realises that these assets can easily walk away, as competitors in India and abroad covet its IT talent. the staffing process; Consequently, the challenge facing Infosys is how to attract, n state the meaning retain and develop its human assets in a highly competitive of recruitment and and dynamic environment? selection; Most of the current human resource practices at Infosys result from the vision of the leaders and the culture that they n identify important have created. Narayana Murthy, known for his leadership and sources of vision is the public image of Infosys. His leadership style is recruitment; humble and straight-forward, quite uncommon in the world of Indian business. He believes in sharing wealth with his n describe the steps in employees and in leading by example. In a knowledge-based the selection process; business like Infosys, he sees the importance of consistency in rhetoric and action in empowering employees. He is credited n appreciate the with creating a culture of closeness and empowerment at need of training and Infosys. His management style, rare among Indian business development; and leaders, is based on western management. n explain various on the Source: Sumita Raghuram, Fordham Graduate job and off the job School of Business methods of training. Reprint 2024-25 Ch_06.indd 139 08-08-2022 10:06:10  140 Business Studies Introduction of every single person employed The foundation of any organisation is by an organisation as it is the the talented and hardworking people, individual worker, who is the ultimate who are the principal assets of any performer. firm. It is an established fact that the Staffing has been described as growth of an organisation requires the managerial function of filling the continual infusion of quality and keeping filled the positions in staff. Thus, adequate staffing or the the organisation structure. This is provision for appropriate human achieved by, first of all, identifying resources is an essential requirement requirement of work force, followed for any organisation’s success. It is, by recruitment, selection, placement, therefore, believed that an organisation promotion, appraisal and development can achieve its objectives only when of personnel, to fill the roles designed it has the right persons in the right into the organisation structure. positions. In a new enterprise, the staffing function follows the planning and Meaning organising functions. After deciding After planning and selection of the what is to be done, how it is to be done organisation structure, the next step and after creation of the organisation in the management process is to fill structure, the management is in a the various posts provided in the position to know the human resource organisation. This is termed as the requirements of the enterprise at management of staffing function. In different levels. Once the number and the simplest terms, staffing is ‘putting types of personnel to be selected is people to jobs’. It begins with workforce determined, management starts with planning and includes different other the activities relating to recruiting, function like recruitment, selection, selecting and training people, to fulfill training, development, promotion, the requirements of the enterprise. compensation and per for mance In an existing enterprise, staffing is appraisal of work force. In other a continuous process because new words, staffing is that part of the jobs may be created and some of the process of management which is existing employees may leave the concerned with obtaining, utilising organisation. and maintaining a satisfactory and satisfied work force. Today, staffing may involve any combination of Importance of Staffing employees including daily wagers, In any organisation, there is a need consultants and contract employees. for people to perform work. The Staffing recognises the importance staffing function of management Reprint 2024-25 Ch_06.indd 140 08-08-2022 10:06:10  Staffing 141 fulfills this requirement and finds (iv) helps to ensure optimum utili­ the right people for the right job. sation of the human resources. Basically, staffing fills the positions as By avoiding overmanning, it shown in the organisation structure. prevents under -utilisation of Human resources are the foundation personnel and high labour of any business. The right people costs. At the same time it avoids can help you take your business to disruption of work by indicating the top; the wrong people can break in advance the shortages of your business. Hence, staffing is the personnel; and most fundamental and critical drive (v) improves job satisfaction and of organisational performance. The morale of employees through staffing function has assumed greater objective assessment and fair importance these days because of reward for their contribution. rapid advancement of technology, Staffing function must be performed increasing size of orga­nisation and efficiently by all organisations. If right complicated behaviour of human kind of employees are not available, beings. Human resources are the most it will lead to wastage of materials, important asset of an organisation. time, effort and energy, resulting in The ability of an organisation to lower productivity and poor quality achieve its goal depends upon the of products. The enterprise will not quality of its human resources. be able to sell its products profitably. Therefore, staffing is a very important It is, therefore, essential that right managerial function. No organisation kind of people must be available in can be successful unless it can fill right number at the right time. They and keep filled the various positions should be given adequate training provided for in the structure with the so that wastage is minimum. They right kind of people. must also be induced to show higher Proper staffing ensures the productivity and quality by offering following benefits to the organisation: them proper incentives. (i) helps in discovering and obtai­ ning competent personnel for Staffing as part of Human various jobs; Resource Management (ii) makes for higher performance, It is a function which all managers by putting right person on the need to perform. It is a separate and right job; specialised function and there are (iii) ensures the continuous survival many aspects of human relations and growth of the enterprise to be considered. It is the job of through the succession planning managers to fill positions in their for managers; organisation and to make sure that Reprint 2024-25 Ch_06.indd 141 08-08-2022 10:06:10  142 Business Studies they remain occupied with qualified But as organisations grow and people. Staffing is closely linked to number of persons employed organising since after the structure increases, a separate department and positions have been decided, called the human resource department people are required to work in these is formed which has specialists in positions. Subsequently, they need managing people. The management to be trained and motivated to work of human resource is a specialised in harmony with the goals of the area which requires the expertise of organisation. Thus, staffing is seen as many people. The number of human a generic function of management. resource specialists and size of this The staffing function deals with department gives an indication of the human element of management. the size of the business as well. For Managing the human component of a very large company, the Human an organisation is the most important Resources Department itself will task because the performance of contain specialists for each function an organisation depends upon how of this department. well this function is performed. Human Resource Management The success of an organisation in includes many specialised activities achieving its goals is determined to and duties which the human resource a great extent on the competence, perso­nnel must perform. These duties motivation and performance of its are: human resource. n Recruitment, i.e., search for It is the responsibility of all managers qualified people to directly deal with and select people n Analysing jobs, collecting inform­ to work for the organisation. When ation about jobs to prepare job the manager performs the staffing descriptions. function his role is slightly limited. n Developing compensation and Some of these responsibilities will incentive plans. include placing the right person n T raining and development of on the right job, introducing new employees for efficient perfor ­ employees to the organisation, mance and career growth. training employees and improving n Maintaining labour relations and their performance, developing their union management relations. abilities, maintaining their morale and n Handling grievances and protecting their health and physical complaints. conditions. In small organisations, n Providing for social security and managers may perform all duties welfare of employees. related to employees salaries, welfare n Defending the company in law suits and working conditions. and avoiding legal complications. Reprint 2024-25 Ch_06.indd 142 08-08-2022 10:06:10  Staffing 143 training of employees. People came to Evolution of Human be recognised as a valuable resource, Resource Management which can be further developed. Increase in scope of the work led to Human resource management has replacement of personnel manager replaced the traditional concept of with human resource manager. labour welfare and personnel manag­ ement. Human Resource Management You may have observed that all (HRM) in its present form has these aspects are concerned with evolved from a number of significant the human element in industry as inter-related developments, which distinct from the mechanical side date back to the era of industrial of the enterprise. Thus, staffing is revolution. Emergence of trade union an inherent part of human resource movement led to the need of a person management as it is the practice of who could act as an effective link finding, evaluating and establishing between the owners and workers. a working relationship with people, Thus, the concept of labour welfare for a purpose. officer came into being. His role was It is important to understand limited to the bare minimum welfare that staffing is both a function of activities of employees. In fact, he was management just like planning, looked down by both the workers and organising, directing, and controlling the owners. as well as a distinct functional area With the introduction of factory of management just as marketing system, thousands of persons began management and financial to be employed under one roof. The job management. Staffing, is therefore, of hiring people for the organisation referred to as both a line as well was given to one man, who later on as a staff activity i.e., an essential was assigned the responsibility of function of the manager as well as an recruitment, selection and placement advisory role played by the Human of personnel. This led to the Resource Department. emergence of personnel officer in the first place and personnel manager, Staffing Process later on. As you are now aware, the prime Human relations approach recog- concern of the staffing function nises human factor as the most in the management process important instrument of success in is the timely fulfillment of the an organisation. Fast changing tech­ manpower requirements within an nological developments, however, nec­ organisation. These requirements essitated new skill development and may arise in case of starting a new Reprint 2024-25 Ch_06.indd 143 08-08-2022 10:06:10  144 Business Studies business or expanding the existing well. For example, if one is selected one or they may arise as a matter by a Business Process Outsourcing of the need for replacing those who (BPO) unit by virtue of being quit, retire or are transferred or extrovert and well-versed in English promoted from or are fired from the speaking, one needs to be trained job. In any case, need for ‘the right in the relevant business processes, person for the right job’ hardly needs telephone conversation etiquettes an over emphasis. But just as the as well as diction adaptation before phrase ‘water water everywhere and actual placement. The employee’s not a drop to drink’ amplifies the fact experiences during orientation and that despite 2/3rd of the earth being placement form his/her ‘first water, drinkable water is a scarce impression’ of the organisation. Even commodity, so may also be said whilst on the job, the employees need of finding ‘the right person for the training for upgradation of knowledge right job.’ As such, it is important and skills and for preparing for higher to appreciate staffing as a process that starts from understanding the responsibilities. So staff training and manpower requirements within development is another important the organisation and identifying aspect of the staffing process. the potential sources from where What follows is a brief description it can be met, either from within of the above stages. the organisation or from outside. (i) Estimating the Manpower And, given that ‘the right person’ Requirements: You are aware is scarce, there is need to ‘market’ that while designing the organis­ the job and the organisation to the ational structure, we undertake people. Even in situations where an analysis of the decisions a single job vacancy might attract and the decision-making levels, a few hundreds of the applicants, activities as well as relationship there is a challenge of selecting among them with a view to the most appropriate one. Freshly evolving the horizontal and appointed persons might need vertical dimensions of the orientation or training to familiarise structure. Thus, various job them with the way the things are positions are created. Clearly, done in an organisation. And, in performance of each job case they have been selected only on necessi­ tates the appointment the basis of academic qualifications of a person with a specific set of and aptitude for learning, they might educational qualifications, skills, need training in specific skills as prior experience and so on. Reprint 2024-25 Ch_06.indd 144 08-08-2022 10:06:10  Staffing 145 Thus, understanding manpower A situation of overstaffing somewhere requirements is not merely a would necessitate employee removal matter of knowing how many or transfer elsewhere. A situation of persons we need but also of understaffing would necessitate the what type. Given that we need to starting of the recruitment process. encourage women, persons from However, before that can be done, backward communities and it is important to translate the persons with special abilities manpower requirements into specific (such as physically challenged, job description and the desirable visually and hearing impaired) profile of its occupant — the to assume responsible positions desired qualifications, experience, in our organisations, there is a personality characteristics and so on. need to understand, and if the This information becomes the base need be, to redefine manpower for looking for potential employees. requirements accordingly. Can (ii) Recruitment: Recruitment may be you think why should we defined as the process of searching encourage such a diversity in for prospective employees and the workforce? stimulating them to apply for jobs in Operationally, understanding the the organisation. The information manpower requirements would nece­ generated in the process of writing ssitate workload analysis on the the job description and the one hand and workforce analysis on candidate profile may be used for the other. Workload analysis would developing the ‘situations vacant’ enable an assessment of the number advertisement. The advertisement and types of human resources may be displayed on the factory/ necessary for the performance of office gate or else it may be got various jobs and accomplishment of published in print media or organisational objectives. Workforce flashed in electronic media. This analysis would reveal the number step involves locating the potential and type available. In fact such an candidate or determining the exercise would reveal whether we sources of potential candidates. are understaffed, overstaffed or In fact, there are a large number optimally staffed. It may be pointed of recruitment avenues available out that neither over-staffing to a firm which would be discussed nor under-staffing is a desirable latter when we talk about the situation. Can you think why? In fact various sources of recruitment. this exercise would form the basis The essential objective is to of the subsequent staffing actions. create a pool of the prospective Reprint 2024-25 Ch_06.indd 145 08-08-2022 10:06:10  146 Business Studies job candidates. Both internal and test and the interviews are offered external sources of recruitment an employment contract, a written may be explored. Internal sources document containing the offer may be used to a limited extent. of employment, the terms and For fresh talent and wider choice conditions and the date of joining. external sources are used. (iv) Placement and Orientation: (iii) Selection: Selection is the pro­ Joining a job marks the beginning cess of choosing from among of socialisation of the employee at the pool of the prospective job the workplace. The employee is candidates developed at the stage given a brief presentation about of recruitment. Even in case of the company and is introduced highly specialised jobs where to his superiors, subordinates the choice space is very narrow, and the colleagues. He is taken the rigour of the selection process around the workplace and given serves two important purposes: the charge of the job for which he (i) it ensures that the organisation has been selected. This process gets the best among the available, of familiarisation is very crucial and (ii) it enhances the self-esteem and may have a lasting impact and prestige of those selected and on his decision to stay and on conveys to them the seriousness his job performance. Orientation with which the things are done in the is, thus, introducing the selected organisation. The rigour involves employee to other employees and a host of tests and interviews, familiarising him with the rules described later. Those who are and policies of the organisation. able to successfully negotiate the Placement refers to the employee Over-staffing: More play, less work Reprint 2024-25 Ch_06.indd 146 08-08-2022 10:06:12  Staffing 147 occupying the position or post (vi) Performance Appraisal for which the person has been After the employees have selected. undergone a period of training (v) Training and Development: and they have been on the job What people seek is not simply for some time, there is a need a job but a career. Every one to evaluate their performance. All organisations have some must have the opportunity to formal or informal means of rise to the top. The best way to appraising their employee’s provide such an opportunity is performance. Performance to facilitate employee learning. appraisal means evaluating an Organisations have either in- employee’s current and/or past house training centers or have performance as against certain forged alliances with training and predetermined standards. The educational institutes to ensure employee is expected to know continuing learning of their what the standards are and employees. The organisations the superior is to provide the too benefit in turn. If employee employee feedback on his/her motivation is high, their performance. The performance competencies are strengthened, appraisal process, therefore, they perform better and thus, will include defining the job, contribute more to organisational appraising performance and effectiveness and efficiency. By providing feedback. offering the opportunities for career advancement to their (vii) Promotion and career planning members, organisations are It becomes necessary for all not only able to attract but also organisations to address career retain its talented people. related issues and promotional As discussed earlier, in most avenues for their employees. organisations there is a separate Managers need to design Human Resource Department, which activities to serve employees’ takes care of the staffing function. long-term interests also. They But in small organisations the line must encourage employees manager is required to perform to grow and realise their full all the functions of management potential. Promotions are viz, planning, organising, staffing, an integral part of people’s directing and controlling. The career. They refer to being process of staffing will then include placed in positions of increased three more stages. responsibility. They usually Reprint 2024-25 Ch_06.indd 147 08-08-2022 10:06:12  148 Business Studies mean more pay, responsibility employees time based wage or and job satisfaction. salary as well as performance based (viii) Compensation financial incentives and bonuses, and employee benefits. All organisations need to Besides there are some other establish wage and salary plans factors also which influence the for their employees. There are design of any pay plan, like legal various ways to prepare different (labour laws), union, company policy pay plans depending on the worth and equity. of the job. Basically the price of Thus, we see that as a process, the job needs to be determined. staffing includes acquisition, rete­ntion, Compensation, therefore, refers development, performance appraisal, to all forms of pay or rewards promotion and compensation of going to employees. It may be the most important resource of an in the form of direct financial organisation, that is, its human payments like wages, salaries, capital. incentives, commissions and It needs to be kept in mind that bonuses and indirect payments several factors such as supply and like employer paid insurance demand of specific skills in the and vacations. labour market, unemployment rate, Direct financial payments labour market conditions, legal and are of two types : time based or political considerations, company’s performance based. A time based image, policy, human resource plan means salary and wages are planning cost, technological paid either daily, weekly or monthly developments and general economic or annually. Performance based environment etc., will influence plans means salary/wages are paid the way recruitment, selection and according to piecework. For example, training will be actually carried out. a worker may be paid according to the number of units produced by Aspects of staffing him/her. There are many methods There are three aspects of staffing: to calculate the compensation under recruitment, selection and training. various incentive plans to reward These are now discussed in detail. performance. Certain pay plans can be created which are a combination Recruitment of time based pay plus incentives Recruitment refers to the process of for higher performance. Various finding possible candidates for a job plans may be formulated for paying or a function. It has been defined as Reprint 2024-25 Ch_06.indd 148 08-08-2022 10:06:12  Staffing 149 ‘the process of searching Applicant Organisation for prospective employees (Person) (Job) and stimulating them to apply for jobs in an organisation.’ Advertising is commonly Recruitment (identification and attraction) part of the recruitment process, and can occur through several means, Selection through newspapers, using (assessment, evaluation and newspaper dedicated to job final match) advertisement, through professional publication, Training using advertisements (Acquainting and skill placed in windows, through development) a job center, through campus interviews, etc. Aspects of Staffing and (d) inviting applications from Sources of Recruitment the prospective candidates, for the The object of recruitment is to vacancies. attract potential employees with The requisite positions may be the necessary characteristics filled up from within the organisation or qualification, in the or from outside. Thus, there are two adequate number for the jobs sources of recruitment – Internal available. It locates available people and External. for the job and invites them to apply Internal Sources for the job in the organisation. The process of recruitment precedes There are two important sources the process of selection of a right of internal recruitment, namely, transfers and promotions, which are candidate for the given positions discussed below: in the organisation. Recruitment seeks to attract suitable applicants (i) Transfers: It involves shifting to apply for available jobs. The of an employee from one job various activities involved with the to another, one department process of recruitment includes (a) to another or from one shift to identification of the different sources another, without a substantive of labour supply, (b) assessment change in the responsibilities of their validity, (c) choosing the and status of the employee. It most suitable source or sources, may lead to changes in duties Reprint 2024-25 Ch_06.indd 149 08-08-2022 10:06:13  150 Business Studies and responsibilities, working Merits of Internal Sources condition etc., but not necessarily salary. Transfer is a good source Filling vacancies in higher jobs from of filling the vacancies with within the organisation or through employees from over-staffed internal transfers has the following departments. It is practically merits: a horizontal movement of (i) Employees are motivated to employees. Shortage of suitable improve their performance. A personnel in one branch may promotion at a higher level may be filled through transfer from lead to a chain of promotion at other branch or department. lower levels in the organisation. Job transfers are also helpful This motivates the employees in avoiding termination and in to improve their performance removing individual problems through learning and practice. and grievances. At the time of Employees work with commitment transfer, it should be ensured that and loyalty and remain satisfied the employee to be transferred with their jobs. Also peace to another job is capable of prevails in the enterprise because performing it. Transfers can also of promotional avenues; be used for training of employees for learning different jobs. (ii) Internal recruitment also simpli­ (ii) Promotions: Business enterprises fies the process of selection and generally follow the practice of placement. The candidates that are filling higher jobs by promoting already working in the enterprise employees from lower jobs. can be evaluated more accurately Promotion leads to shifting an and economically. This is a more employee to a higher position, reliable way of recruitment since carrying higher responsibilities, the candidates are already known facilities, status and pay. to the organisation; Promo­ tion is a vertical shifting (iii) Transfer is a tool of training the of em­ ployees. This practice employees to prepare them for helps to improve the motivation, higher jobs. Also people recruited loyalty and satisfaction level from within the organisation do of employees. It has a great not need induction training; psycho­ logical impact over the employees because a promotion (iv) Transfer has the benefit of at the higher level may lead to shifting workforce from the a chain of promotions at lower surplus departments to those levels in the organisation. where there is shortage of staff; Reprint 2024-25 Ch_06.indd 150 08-08-2022 10:06:13  Staffing 151 (v) Filling of jobs internally is cheaper External recruitment provides wide as compared to getting candidates choice and brings new blood in the from external sources. organisation. The commonly used Limitations of Internal external sources of recruitment are Sources discussed below: (i) Direct Recruitment: Under The limitations of using internal the direct recruitment, a notice sources of recruitment are as follows: is placed on the notice-board (i) When vacancies are filled of the enterprise specifying the through internal promotions, the details of the jobs available. Job- scope for induction of fresh talent seekers assemble outside the is reduced. Hence, complete premises of the organisation on reliance on internal recruitment the specified date and selection involves danger of ‘inbreeding’ by is done on the spot. The practice stopping ‘infusion of new blood’ of direct recruitment is followed into the organisation; usually for casual vacancies of (ii) The employees may become unskilled or semi-skilled jobs. lethargic if they are sure of time- Such workers are known as bound promotions; casual or ‘badli’ workers and they (iii) A new enterprise cannot use are paid remuneration on daily internal sources of recruitment. wage basis. This method of No organisation can fill all its recruitment is very inexpensive vacancies from internal sources; as it does not involve any cost (iv) The spirit of competition among of advertising the vacancies. the employees may be hampered; It is suitable for filling casual and vacancies when there is a rush of work or when some permanent (v) Frequent transfers of employees workers are absent. may often reduce the productivity of the organisation. (ii) Casual Callers: Many reputed business organisations keep External Sources a database of unsolicited An enterprise has to tap external applicants in their offices. Such sources for various positions job-seekers can be a valuable because all the vacancies cannot be source of man­ power. A list filled through internal recruitment. of such job-seekers can be The existing staff may be insufficient prepared and can be screened to or they may not fulfill the eligibility fill the vacancies as they arise. criteria of the jobs to be filled. The major merit of this source Reprint 2024-25 Ch_06.indd 151 08-08-2022 10:06:13  152 Business Studies of recruitment is that it reduces not up to date and many of the the cost of recruiting workforce candidates referred by them may in comparison to other sources. not be found suitable. (iii) Advertisement: Advertisement (v) Placement Agencies and in newspapers or trade and Management Consultants: In professional journals is generally technical and professional used when a wider choice is areas, private agencies and required. Most of the senior professional bodies appear to positions of industry as well be doing substantive work. as commerce are filled by this Placement agencies provide a method. The advantage of nationwide service in matching advertising vacancies is that more personnel demand and supply. information about the organisation These agencies compile bio-data and job can be given in the of a large number of candidates advertisement. Advertisement and recommend suitable names gives the management a wider to their clients. Such agencies range of candidates from which charge fee for their services and to choose. Advertisements may be they are useful where extensive placed in leading newspapers. Its screening is required. These disadvantage is that it may bring professional recruiters can in a flood of response, and many entice the needed top executives times, from quite unsuitable from other companies by making candidates. the right offers. (iv) Employment Exchange: Emp­ Management consultancy loyment exchanges run by the firms help the organisations to Government are regarded as a recruit technical, professional good source of recruitment for and managerial personnel. They unskilled and skilled operative specialise in middle level and jobs. In some cases, compulsory top level executive placements. notification of vacancies to They maintain data bank of employment exchange is required persons with different qualifica­ by law. Thus, employment tions and skills and even exchanges help to match advertise the jobs on behalf of personnel demand and supply their clients to recruit right type by serving as link between of personnel. job-seekers and employers. (vi) Campus Recruitment: Colleges Unfortunately, the records of and institutes of management employment exchange are often and technology have become a Reprint 2024-25 Ch_06.indd 152 08-08-2022 10:06:13  Staffing 153 popular source of recruitment the workers employed through him for technical, professional and will follow suit. managerial jobs. Many big orga­ (ix) Advertising on Television: The nisations maintain a close liaison practice of telecasting of vacant with the universities, vocational posts over Television is gaining schools and management insti- importance these days. The tutes to recruit qualified person­ detailed requirements of the job nel for various jobs. Recruitment and the qualities required to do from educational institutions is it are publicised alongwith the profile of the organisation where a well-established practice of vacancy exists. businesses. This is referred to as campus recruitment. (x) Web Publishing: Internet is becoming a common source of (vii) Recommendations of Emp­ recruitment these days. There loyees: Applicants introduced are certain websites specifically by present employees, or their designed and dedicated for the friends and relatives may prove to purpose of providing information be a good source of recruitment. about both job seekers and job Such applicants are likely to opening. In fact, websites are be good employees because very commonly visited both by their background is sufficiently the prospective employees and known. A type of preliminary the organisations searching for screening takes place because suitable people. the present employees know both the company and the candidates and they would try to satisfy both. (viii) Labour Contractors: Labour contractors maintain close contacts with labourers and they can provide the required number of unskilled workers at short notice. Workers are recruited through labour contractors who are themselves employees of the organisation. The disadvantages of this system are that if the contractor himself decides to leave the organisation, all Campus Recruitment Reprint 2024-25 Ch_06.indd 153 08-08-2022 10:06:13  154 Business Studies Merits of External Sources 2. Lengthy process: Recruitment from external sources takes a The advantages of using external long time. The business has to sources of recruitment are as follows: notify the vacancies and wait (i) Qualified Personnel: By using external sources of recruitment, for applications to initiate the the management can attract selection process. qualified and trained people 3. Costly process: It is very costly to apply for vacant jobs in the to recruit staff from external organisation. sources. A lot of money has to (ii) Wider Choice: When vacancies be spent on advertisement and are advertised widely, a large processing of applications. number of applicants from outside the organisation apply. Selection The management has a wider Selection is the process of identifying choice while selecting the people and choosing the best person out of for employment. a number of prospective candidates (iii) Fresh Talent: The present for a job. Towards this purpose, the employees may be insufficient candidates are required to take a series or they may not fulfill the of employment tests and interviews. At specifications of the jobs to be every stage many are eliminated and a filled. External recruitment few move on to the next stage until the provide wider choice and brings right type is found. The process may new blood in the organisation. start right from the screening of the However, it is expensive and time- applications. It may continue even after consuming. the offer of employment, acceptance and (iv) Competitive Spirit: If a company joining of the candidate. It is so because taps external sources, the the process of selection, like any other extisting staff will have to managerial decision, involves judgment compete with the outsiders. They about the performance potential of will work harder to show better the candidate. The effectiveness of the performance. selection process would ultimately be tested in terms of on-the-job of the Limitations of External Sources chosen person. 1. Dissatisfaction among existing staff: External recruitment may lead Process of Selection to dissatisfaction and frustration The important steps in the process of among existing employees. They selection are as follows: may feel that their chances of (i) Preliminary Screening: Preli­ promotion are reduced. minary screening helps the Reprint 2024-25 Ch_06.indd 154 08-08-2022 10:06:13  Staffing 155...Hiring via employee referrals on the rise When Lenovo India decided to strengthen its diversity numbers, it decided to tap into its referral system. The company asked its employees to recommend candidates, and decided to reward those who successfully recommended more women for the same roles. As employee referrals become an established method to hire quality lateral talent, companies are using technology platforms to build a steady talent pipeline through referrals. A majority of companies (nearly 41%, according to one study) across India use top technology for referral hires. According to the study India Recruiting Trends 2016 conducted by LinkedIn Talent Solutions, employee referrals are on the rise. This year, referrals were the top source of quality hires. “Nearly 55% of talent leaders see employee referral programmes as the top source of quality hire,” says Irfan Abdulla, director, talent solutions, LinkedIn India. Top players such as Coca-Cola, Infosys, Genpact, Capgemini, Deloitte, Dabur, Jubilant and more are reporting that over 40% of their hires come through referrals. Today, technology major Infosys, for instance, has enhanced the use of technology for the employee referral process. It has created a portal where employees can view requirements and submit profiles of candidates directly. Employees can then track the status of their referral real-time. Richard Lobo, senior vice president and head HR, Infosys, says a majority of their hiring now takes place through the referral route. “Employees can make a good referral decision as they understand the aspirations of the candidate they refer as well as the requirements and culture of the company,” he said. Source: https://economictimes.indiatimes.com ›, August 19, 2016 manager eliminate unqualified Important Tests Used for Selection or unfit job seekers based on of Employees: the information supplied in the (a) Intelligence Tests: This is one application forms. Preliminary of the important psychological interviews help reject misfits for tests used to measure the level reasons, which did not appear in of intelligence quotient of an the application forms. individual. It is an indicator of a (ii) Selection Tests: An employment person’s learning ability or the test is a mechanism (either a paper ability to make decisions and and pencil test or an exercise) that judgments. attempts to measure certain cha- racteristics of individuals. These (b) Aptitude Test: It is a measure characteristics range from apti­ of individuals potential for tudes, such as manual dexterity, learning new skills. It indicates to intelligence to personality. the person’s capacity to develop. Reprint 2024-25 Ch_06.indd 155 08-08-2022 10:06:13  156 Business Studies Intense Competition, Talent Crunch Push Companies to Hand Out 15-20% Pay Hikes Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes. Reliance Industries, Marico and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail. A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%. Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, “Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR,” said Dabur India HR chief. Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc. Source: The Economic Times, 1st Dec. 06 Such tests are good indices of a level of knowledge and proficiency person’s future success score. in the area of professions or technical training. The difference (c) Personality Tests: Personality between aptitude test and trade tests provide clues to a person’s test is that the former measures emotions, her reactions, maturity the potential to acquire skills and value system etc. These tests and the later the actual skills probe the overall personality. possessed. Hence, these are difficult to (e) Interest Tests: Every individual design and implement. has fascination for some job than (d) Trade Test: These tests measure the other. Interest tests are used the existing skills of the to know the pattern of interests individual. They measure the or involvement of a person. Reprint 2024-25 Ch_06.indd 156 08-08-2022 10:06:13  Staffing 157 (iii) Employment Interview: be generally considered in the Interview is a formal, in-depth final selection because it is conversation conducted to he/she who is responsible for evaluate the appli­cant’s suitability the performance of the new for the job. The role of the employee. interviewer is to seek information (vi) Medical Examination: After the and that of the interviewee is to selection decision and before the provide the same. Though, in job offer is made, the candidate present times, the interviewee is required to undergo a medical also seeks information from fitness test. The job offer is given interviewer. to the candidate being declared fit after the medical examination. (iv) Reference and Background (vii) Job Offer: The next step in the Checks: Many employers request selection process is job offer names, addresses, and telephone to those applicants who have numbers of references for the passed all the previous hurdles. purpose of verifying information Job offer is made through a and, gaining additional inform­ letter of appointment/confirm ation on an applicant. Previous his acceptance. Such a letter employers, known persons, generally contains a date by ers teach­ and university which the appointee must professors can act as references. report on duty. The appointee (v) Selection Decision: The final must be given reasonable time decision has to be made from for reporting. among the candidates who (viii)Contract of Employment: After pass the tests, interviews and the job offer has been made reference checks. The views and candidate accepts the offer, of the concerned manager will certain documents need to be Right/ Wrong Selection Decisions Matter a lot to the Organisations! Consider, for a moment that any selection decision can result in 4 possible outcomes. A decision is correct when an applicant was predicted to be successful and proved to be successful on the job, or when the applicant was predicted to be unsuccessful and would perform accordingly if hired. In the first case, we have successfully accepted; in the second case we have successfully rejected. Problems arise when errors are made in rejecting candidates who would have performed successfully on the job (reject errors) or accepting those who ultimately perform poorly (accept errors). Don’t you think, these problems can be significant and can result in costly mistakes? Reprint 2024-25 Ch_06.indd 157 08-08-2022 10:06:13  158 Business Studies Start Sources of Application Internal Sources External Sources Preliminary Screening Is Preliminary Yes Screening No … OK Reject Selection Tests Is Selection Test No … OK Reject Employment Interview Yes Is Employ­ No … ment Interview Reject OK Reference and Background Analysis Yes Is Reference and Back- No … ground OK Reject Selection Decision Yes Is Selection No … Decision Positive Reject Yes Job Offer Employment contract Evaluation of the effectiveness of the selection Rejected process Applications Reprint 2024-25 Ch_06.indd 158 08-08-2022 10:06:13  Staffing 159 executed by the employer and the through learning, usually by changing candidate. One such document is the employee’s attitude or increasing the attestation form. This form his or her skills and knowledge. contains certain vital details Importance of Training and about the candidate, which are Development authenticated and attested by him or her. Attestation form When jobs were simple, easy to learn will be a valid record for future and influenced to only a small degree reference. There is also a need by technological changes, there was for preparing a contract of little need for employees to upgrade employment. Basic information or alter their skills. But the rapid that should be included in a changes taking place during the written contract of employment last quarter century in our highly will vary according to the level sophisticated and complex society of the job, but the following have created increased pressures for checklists sets out the typical organisations to readapt the products headings: Job Title, Duties, and services produced, the manner Responsibilities, Date when in which products and services are continuous employment starts produced and offered, the types of and the basis for calculating jobs required and the types of skills service, rates of pay, allowances, necessary to complete these jobs. hours of work, leave rules, Thus, as jobs have become more sickness, grievance procedure, complex the importance of employee disciplinary procedure, work training has increased. rules, termination of employment. Training and development help both the organisation and the Training and Development individual. Someone has rightly said: Benefits to the organisation “If you wish to plan for a year, sow The benefits of training and develop­ seeds, ment to an organisation are as follows: If you wish to plan for 10 years, (i) Training is a systematic learning, plant trees, always better than hit and trial If you wish to plan for a lifetime, methods which lead to wastage develop people.” of efforts and money. Training and Development is an (ii) It enhances employee produc­ attempt to improve the current or future tivity both in terms of quantity employee performance by increasing and quality, leading to higher an employee’s ability to perform profits. Reprint 2024-25 Ch_06.indd 159 08-08-2022 10:06:14  160 Business Studies (iii) Training equips the future are distinct terms although they manager who can take over in overlap to some extent. case of emergency. Training is any process by which (iv) Training increases employee the aptitudes, skills and abilities morale and reduces absenteeism of employees to perform specific and employee turnover. jobs are increased. It is a process of (v) It helps in obtaining effective learning new skills and application response to fast changing environment – technological and of knowledge. It attempts to economic. improve their performance on the current job or prepare them for any Benef its to the Employee intended job. The benefits of training and develop­ ment activity to the employees are as Education is the process of increa­ follows: sing the knowledge and understanding (i) Improved skills and knowledge of employees. It is the understanding due to training lead to better and interpretation of knowledge. It career of the individual. does not provide definite answers, but (ii) Increased performance by the rather develops a logical and rational individual help him to earn more. mind that can determine relationships (iii) Training makes the employee among pertinent variables and more efficient to handle machines. thereby understand a phenomenon. Thus, less prone to accidents. Education imparts qualities of mind (iv) Training increases the satisfaction and character and understanding of and morale of employees. the basic principles and develop the capacities of analysis, synthesis and Training, Development and objectivity. Education is broader in Education scope than training. Training is tied The term training is used to indicate to the goals of organisations more the process by which attitudes, than to the goals of the individual. skills and abilities of employees to Development refers to the perform specific jobs are increased. learning opportunities designed But the term development means to help employees grow. It covers growth of individual in all respects. not only those activities which Training is short term process but improve job performance but also development is an on going process. those which bring about growth of Also, development includes training. the personality, help individuals It also needs to be understood that in the progress towards maturity training, education and development and actualisation of their potential Reprint 2024-25 Ch_06.indd 160 08-08-2022 10:06:14  Staffing 161 Difference between Training and Development Training Development It is a process of increasing knowledge It is a process of learning and growth. and skills. It is to enable the employee to do the job It is to enable the overall growth of the better. employee. It is a job oriented process. It is a career oriented process. capacities so that they become not On the Job Methods only good employees but better men (i) Apprenticeship Programmes: and women. Apprenticeship programmes The field of training and develop- put the trainee under the ment concerned with improving guidance of a master worker. deals with the design and delivery These are designed to acquire of learning to improve performance a higher level of skill. People within organisations. In some org- seeking to enter skilled jobs, to anisations the term Learning and become, for example, plumbers, Development is used instead of electricians or iron-workers, Training and Development in order to are often required to undergo emphasise the importance of learning apprenticeship training. These for the individual and the organisation. apprentices are trainees who In other organisations, the term spend a prescribed amount Human Resource Development is of time working with an used. experienced guide, or trainer. A uniform period of training is Training Methods offered to trainees, in which both There are various methods of training. fast and slow learn here, are These are broadly categorised into placed together. Slow learners two groups: On-the-Job and Off-the- may require additional training. Job methods. On-the-Job methods refer to the methods that are applied (ii) Coaching: In this method, the to the workplace, while the employee superior guides and instructs the is actually working. Off-the-Job trainee as a coach. The coach or methods are used away from the work counselor sets mutually agreed place. The former means learning upon goals, suggests how to while doing, while the latter means achieve these goals, periodically learning before doing. reviews the trainees progress Reprint 2024-25 Ch_06.indd 161 08-08-2022 10:06:14  162 Business Studies and suggests changes required When employees are trained by in behavior and performance. this method, the organisation The trainee works directly with a finds it easier at the time of senior manager and the manager promotions, replacements or takes full responsibility for the transfers. trainee’s coaching. Classically Off the Job Methods the trainee is being groomed (i) Class Room Lectures/Confer­ to replace the senior manager ences: The lecture or conference and relieve him from some of approach is well adapted to his duties. This gives a chance conveying specific information- for the trainee to learn the rules, procedures or methods. job also. The use of audio-visuals or (iii) Internship Training: It is a demonstrations can often make joint programme of training in a formal classroom presentation which educational institutions more interesting while increasing and business firms cooperate. retention and offering a vehicle Selected candidates carry for clarifying more difficult on regular studies for the points. prescribed period. They also (ii) Films: They can provide work in some factory or office to information and explicitly acquire practical knowledge and skills. demonstrate skills that are not easily represented by the other (iv) Job Rotation: This kind of techniques. Used in conjunction training involves shifting the with conference discussions, it is trainee from one department to another or from one job to a very effective method in certain another. This enables the trainee cases. to gain a broader understanding (iii) Case Study: Taken from actual of all parts of the business and experiences of organisations, how the organisation as a whole cases represent attempts to functions. The trainee gets fully describe, as accurately as possible involved in the departments real problems that managers have operations and also gets a faced. Trainees study the cases chance to test her own aptitude to determine problems, analyse and ability. Job rotation allows causes, develop alternative trainees to interact with other solutions, select what they employees facilitating future believe to be the best solution, cooperation among departments. and implement it. Reprint 2024-25 Ch_06.indd 162 08-08-2022 10:06:14  Staffing 163 (iv) Computer Modelling: It simul­ equipment. This is usually done ates the work environment by when employees are required to programming a computer to handle sophisticated machinery imitate some of the realities and equipment. of the job and allows learning (vi) Programmed Instruction: This to take place without the risk method incorporates a prearran­ or high costs that would be ged and proposed acquisition of incurred if a mistake were made some specific skills or general in real life situation. knowledge. Information is broken (v) Vestibule Training: Employees into meaningful units and these learn their jobs on the equipment units are arranged in a proper they will be using, but the way to form a logical and training is conducted away from sequential learning package i.e. the actual work floor. Actual from simple to complex. The work environments are created trainee goes through these units in a class room and employees by answering questions or filling use the same materials, files and the blanks. Key Terms Staffing Personnel Management Human Resource Management Recruitment Selection Training Development Performance Appraisal Assessment Tests Summary Meaning: Staffing has been described as the managerial function of filling and keeping filled, the positions in an organisation structure. This is achieved by, first of all, identifying requirement of work force, followed by recruitment, selection, placement, promotion, appraisal and development of personnel, to fill the roles designed into the organisation structure. Need and Importance of Staffing: In any organisation, there is a need for people to perform work. The staffing function of management fulfills this requirement and finds the right people for the right job. Reprint 2024-25 Ch_06.indd 163 08-08-2022 10:06:14  164 Business Studies The staffing function has assumed greater importance these days because of rapid advancement of technology, increasing size of organisation and complicated behaviour of human beings. The ability of an organisation to achieve its goal depends upon the quality of its human resources. Staffing as part of Human Resource Management: Staffing is a function which all managers need to perform. It is a separate and specialised function and there are many aspects of human relations to be considered. It is the responsibility of all managers to directly deal and select people to work for the organisation. When the manager performs the staffing function his role is slightly limited. In small organisations, managers may perform all duties related to employees salaries, welfare and working conditions. But as organisations grow and number of persons employed increases, a separate department called the human resource department is formed which has specialists in the field to manage people. Human Resource Management includes many specialised activities and duties which the human resource personnel must perform. Evolution of HRM: Human resource management has replaced the traditional concept of labour welfare and personnel management. HRM in its present form has evolved from a number of significant inter-related developments, which date back to the era of industrial revolution. Emergence of trade union movement led to the need of a person who could act as an effective link between the owners and workers. You may have observed that all these aspects are concerned with the human element in the industry as distinct from the mechanical side of the enterprise. Thus, staffing is an inherent part of human resource management as it is the practice of finding, evaluating and establishing a working relationship with people, for a purpose. Staffing Process: The prime concern of the staffing function in the management process is the timely fulfillment of the manpower requirements within an organisation. Estimating the Manpower Requirements: Performance of each job necessitates the appointment of a person with a specific set of educational qualifications, skills, prior experience and so on. Operationally, understanding the manpower requirements would necessitate workload analysis on the one hand and workforce analysis on the other. Reprint 2024-25 Ch_06.indd 164 08-08-2022 10:06:14  Staffing 165 Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. Selection: Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. Placement and Orientation: Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation. Placement refers to the employee occupying the position or post for which the person has been selected. Training and Development: What people seek is not simply a job but a career. Every one must have the opportunity to rise to the top. The best way to provide such an opportunity is to facilitate employee learning. Recruitment Recruitment refers to the process of finding possible candidates for a job or function. Sources of Recruitment: The requisite positions may be filled up from within the organisation or from outside. Thus, there are two sources of recruitment – Internal and External. Internal Sources: Recruitment from within the enterprise. There are two important sources of internal recruitment, namely, transfers and promotions. External Sources: An enterprise has to tap external sources for various positions because all the vacancies cannot be filled through internal recruitment. The commonly used external sources of recruitment are Direct Recruitment, Casual Callers, Advertisements, Employment Exchange, Placement Agencies and Management Consultants, Campus Recruitment, Recommendations of Employees, Labour Contractors, Advertising on Television and Web Publishing. Process of Selection: (i) Preliminary Screening: Application Form (ii) Selection Tests: (a) Intelligence Tests (b) Aptitude Test (c) Personality Tests (d) Trade Test (e) Interest Tests (iii) Employment (iv) Interview, (v) Reference and Background Checks, (vi) Selection Decision, (vii) Medical Examination, (viii) Job Offer (ix) Contract of Employment Training and Development Need of Training and Development The rapid changes taking place in our highly sophisticated and complex society have created increased pressures for organisations Reprint 2024-25 Ch_06.indd 165 08-08-2022 10:06:14  166 Business Studies to readapt the products and services produced, the manner in which products and services are produced and offered, the types of jobs required and the types of skills necessary to complete these jobs. Training is any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. Education is the process of increasing the knowledge and understanding of employees. It is the understanding and interpretation of knowledge. Development refers to the learning opportunities designed to help employees grow. Training Methods There are various methods of training. These are broadly categorised into two groups: On-the-Job and Off-the-Job methods.