Staffing Process: Meaning, Steps, Process, Staffing Function, Recruitment

Staffing is one of the important managerial functions. It encompasses within its ambit the overall manpower planning and other relevant activities associated with manpower development. It is considered as a distinct process consisting of specific steps.

According to Theo Haimann, “…staffing function is concerned with the placement, growth, and development of all of those members of the organisation whose function it is to things done through the efforts of other individuals.”

Staffing process consists of a series of steps which are as follows:-

1. Situational Factors Analysis 2. Enterprise Plans 3. Organisational Plans 4. Estimating Manpower Requirements 5. Identification of Sources of Supply 6. Job Analysis 7. Recruitment and De-Recruitment

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8. Selection of Competent Employees 9. Placement 10. Orientation of the Employees. 11. Plan for Employee Training and Development 12. Employee Performance (Appraisal) 13. Compensation and Benefits 14. Promotion and Career Planning 15. Transfer.

Staffing Process: Meaning, Process, Steps and Management

Staffing Process – Meaning and 8 Specific Steps

These steps are as follows:

Step # 1. Situational Factors Analysis:

Staffing does not work in a vacuum. In reality, the actual process of staffing is influenced by several environmental factors. The environmental factors affecting staffing are broadly put into two categories-external and internal. The major external environmental factors in relation to staffing are – level of education, socio-cultural conditions, legal and political situation, competitive conditions, economic constraints and opportunities. These forces affect not only the demand for managers but also the supply of managers.

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On the contrary, the internal factors affecting staffing are – organisational goals and tasks, organisation structure, technology, the kind of people employed by the enterprise, the demand for and supply of managers within the enterprise, the compensation plan, reward system and other related policies of the enterprise. Hence, the staffing process begins with suitable scanning and evaluation of the situational factors.

Step # 2. Enterprise Plans:

The entire managerial activities, of which staffing is a part, are performed in order to accomplish the goals of an enterprise. Hence, the second important step of the staffing process is to consider the plans of the enterprise. In fact, managers are required to help in achieving the goals or missions for which the enterprise exists. An enterprise may have long-term plan, medium-term plan and short-term plan. The plans are formulated to achieve the organisational objectives. Hence, in the process of staffing it is essential to consider the various plans of the enterprise.

Step # 3. Organisational Plans:

The third important step involved in the process of staffing is organisational plans. As staffing activities are performed to man the organisation structure, it is essential to keep in mind the types of managers needed to fill the existing and future managerial positions. Similarly, some organisations may be highly structured, but others may not be. The ability and skills needed for different managers may also be different depending upon the requirements of organisational plans.

For example, the skills and capabilities of sales manager will be quite different in comparison to those of research and development manager. Similarly, production manager, financial manager and personnel manager need quite different managerial skills and ability. Thus, enterprise and organisation plans act as vital inputs for staffing tasks.

Step # 4. Determination of Managerial Requirements:

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Determination of managerial requirements is the third valuable step in the staffing process. In the words of Koontz and Weihrich, “Selecting a manager effectively requires a clear understanding of the nature and purpose of the position which is to be filled. An objective analysis of position requirements must be made, and, as far as possible, the job must be designed to meet organisational and individual needs. In addition, positions must be evaluated and compared so that the incumbents can be treated equitably.”

At this stage, the number and kinds of managers required are determined keeping in view the present and future needs. The manager may adopt four methods to determine the managerial requirements – (i) annual estimates of vacancies, (ii) long-range estimates of vacancies, (iii) fixed minimum man specification requirement, and (iv) specific position estimations.

William H. Newman has suggested three major steps for determining executive personnel requirements.

They are:

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(i) Determine the duties of each position from a study of the desired organisation structure.

(ii) Develop man specifications of the qualities and other characteristics needed by an executive to fill each position satisfactorily.

(iii) Analyse the age and ability of existing executives, and develop plans for filling gaps and providing necessary replacements.

According to Newman, “The kind of an individual who can satisfactorily fill position X is indicated by what may be called ‘man specifications’. Broadly considered, such specifications are of two types; they may be performance requirements, in that they stipulate what a man must be able to do, or they may be more indirect, in that they stipulate the qualities, experience, and other characteristics an individual should possess.”

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The personal qualities a manager may need are – vitality and endurance, decisiveness, persuasiveness, responsibility, intellectual capacity, alertness, analytical ability, initiative, accuracy and work habits.

Step # 5. Identification of Sources of Supply:

The next important step in the process of staffing is to determine the sources of supply of managers. While deciding the sources of managerial supply, organisational plans and different aspects of managerial requirements are kept in mind.

There are two sources of supply of managers:

(i) Internal, and

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(ii) External.

(i) Internal Source – Internal source covers the present subordinates and other supervisory personnel of the enterprise. Promotion and transfer are the main internal sources of filling the vacancies. Promotion from within the organisation is a popular policy of a large number of enterprises.

(ii) External Source – External sources include colleges, universities, other public and private enterprises, etc. In other words, an enterprise may opt the policy of open competition. Both the sources have their own merits and demerits.

Step # 6. Determination of Selection Procedure:

After identifying the sources of supply of managers, the next step is to determine the selection process. As a matter of fact, the selection of managers is regarded one of the most critical steps in the entire process of staffing. It is because of the fact that the quality of managers is one of the vital factors determining the continuing success of an enterprise. Selection is an activity which is performed to match the people with the jobs.

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For the purpose of selection, first of all, the selection criteria are determined on the basis of current and future job requirements. Further, the candidate is requested to complete an application form meant for this purpose. However, if the candidate is chosen from within the organisation, it is not necessary. Thereafter, an interview is arranged; the information supplied by the candidate is checked and verified. Again, the candidate may be called for physical examination. If the manager is satisfied the candidate is either offered the job or informed about his or her selection for the position.

Step # 7. Plan for Training and Development:

After selecting the managers and other subordinates, the next step relates to training and development. This is not only essential for the new incumbent selected from outside sources, but it is also equally important for those who are selected from within the organisation. The main objective of training and development is to increase the knowledge and skills of the new incumbents for doing the jobs in much better ways.

It may be observed that “training and development as a part of the process of staffing refers to (a) assisting the employee to use more effectively his skills, talents and knowledge; (b) assisting in expanding his skills, talents and knowledge; and (c) assisting the employee in finding his true potential, and in preparing him for greater and higher responsibilities.”

The manager, therefore, decides the methods of training and development. There are several internal and external training programmes which can be arranged. For example, coaching, junior boards, position rotation, simulation, special lectures, etc. are the methods used for providing training and development.

Step # 8. Development of Compensation Plan:

The final step involved in the process of staffing is the development of managerial compensation plan. In fact, the determination of compensation is a ticklish problem for any enterprise. According to Newman, “Generally, this can be handled best by setting up a sound salary structure and by wise use of bonuses and other forms of supplementary pay. The plan must be equitable and at the same time flexible enough to fit the highly individualistic nature of a cadre of executives.” It may be observed that financial remuneration should be followed by a variety of non-financial incentives.

Staffing Process – Human Resource Planning, Job Analysis, Recruitment and De-Recruitment, Selection of Competent Employees and a Few Others

1. Human Resource Planning:

Ensures that the organization has the right number and kind of people who are put at right jobs at right time so that employees are able to perform their assigned tasks effectively and efficiently. HR planning mainly comprises of two important activities – (i) Assessing current human resources and (ii) Assessing future human resources needs and to prepare a plan for meeting this requirement.

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Objective of HRP:

i. Optimum use of human resources.

ii. Avoid imbalances in distribution and allocation of human resources.

iii. Forecast future skill requirements of organizations.

iv. Control measure to ensure availability of necessary resources.

v. Control cost aspects.

vi. Formulation of transfer and promotion policy.

2. Job Analysis:

Job Analysis, which is an assessment that describes jobs and the behaviour necessary to perform them, is carried out for assessing current needs. A job description, which is a written statement of what a job holder does, how it is done and why it is done and a job specification which states the minimum qualification to perform a given job successfully are derived out of job analysis data.

It is therefore necessary to identify the knowledge, skills and attitudes required from an employee to do the job efficiently. Future human needs are dependent on the organizations mission, goals and strategies. Future HR needs are sometimes direct function of future demand of organization’s product.

3. Recruitment and De-Recruitment:

Process of locating, identifying and attracting capable aspirants is called recruiting. Choice of recruitment source depends upon local labour market, type or level of vacant positions and size of the organization. Many a times modem organizations prefer employee referral system which typically produces the best aspirants with minimum recruitment expenditure.

De-recruiting the process of reducing the size of the organizations workforce or restructuring its skill base, to meet the demands of a dynamic environment. De-recruitment may be implemented through firing, layoff, attrition (voluntary retirement), transfer, reduced workweek, early retirement and job sharing etc.

Following are the steps involved in the process of recruitment:

i. Identifies different source of labour supply.

ii. Assesses their validity.

iii. Chooses the most suitable source or sources.

iv. Invite applications from prospective candidates for vacant jobs.

Sources of Recruitment:

Various sources of recruitment can be classified into two broad categories:

1. Internal Sources, and

2. External Sources.

4. Selection of Competent Employees:

Major source for identification of potential job candidates are, internal search, advertisements in newspapers, employee referrals, employment agencies, professional institutions, placement cells and internet etc.

Screening job applicants to ensure that the most appropriate candidates are hired is the main function of the selection process. Selection is an exercise in prediction about the success of the hired candidate. Various methods may be used in the selection process e.g., application forms, written test, performance simulation tests, interviews and physical examination etc. Each method is suitable for a given category of jobs ranging between senior management, middle level management, lower management (supervisors) and routine works etc.

Selection Procedure:

1. Preliminary Screening:

i. Receive of application – Selection process starts with receipt of application by personnel department.

ii. Scrutiny – All applications received are scrutinized to find out whether candidates fulfill minimum academic qualifications and other requirements.

iii. Preliminary interview – It eliminates un-qualified candidates.

2. Application Blank:

If candidate appears to have some chance of being selected, he is given an application form known as – ‘application blank’. Application Blank is a personal history questions have.

Application blank consist of following particulars usually:

Name – Marital status.

Address – Educational Qualification.

Age – Work Experience.

3. Employment Test:

Candidates who meet minimum requirements appear written or oral tests as means of examining suitable for job. The various tests include intelligence test, aptitude test, trade test, general personality test etc.

4. Selection Interview:

It consists of conversion between employer and prospective employee. Candidates interact with selector and the letter gets a first-hand idea of personality and other qualities of candidates. Candidates also get a chance to seek information about enterprise, nature of the job and prospects of promotion.

5. Orientation of the Employees:

After selection, the successful candidates are put to orientation. The orientation may be formal or informal and makes the new member feel comfortable and lowers the likelihood of poor performance and helps in developing team spirit. The period of orientation will depend upon the job requirement and previous experience of the selected person.

There are four types of orientation. Work Unit Orientation which familiarizes an employee with goals of the work unit and how his job will contribute to achieve the unit’s goal. The employee is introduced to the other colleagues. In the organization orientation the new employee is informed about the organizations objectives, history, procedures, ethical rules etc.

6. Employee Training:

Training is one of the means for workforce development. As the market forces changes, new products and devices are to be introduced for which employees need to be trained appropriately for updating their job skills.

Organizations generally provide training in one or more of the following areas:

Technical – Product training, sales process, I.T application and other technical skills.

Business – Finance, Marketing, Quality, Organizational culture etc.

Mandatory – Safety, Health, Various Legal compliances.

Personal – Career planning, time management, public speaking, money management etc.

7. Employee Performance (Appraisal):

Manager need to know whether their employees are performing their jobs efficiently and effectively or whether there is a need for improvement. Evaluating employee performance is part of a performance management system where performance standards are established and employees are appraised about their ratings.

Following are different appraisal methods each having advantages and disadvantages:

i. Written Essay where description of employee’s strength and weaknesses are made along with their potential and suggestions for performance improvement.

ii. Graphic rating scale- lists a set of performance factors (typical of a given job) where evaluator rates the employees on each factor on a five point scale varying from excellent to poor. Such scales do not provide depth of job behavior assessed.

iii. Behaviourally Anchored Rating Scale (BARS) is another popular approach for appraisal. Here the items are based on actual job behaviour rather than general description of traits, evaluated on five point scale. Although the method focus on specific and measurable job behaviour, but it is difficult to develop such scale.

iv. Multiperson Comparison – the employees are rated as top performers (20%), middle performers (70 percent) or below performers (10 percent). Although the system develops a sense of competition amongst the employees, it is unwieldy with large number of employees.

v. Objectives method uses how well the employee has accomplished a specific set off goals. It is a preferred method of appraising managers and professional employees. Although appraisal is result oriented but is time consuming.

vi. 360 degrees feedback utilizes feedback for Managers performance from supervisors, employees and co-workers. Although it is effective for career growth and helping a manager to know his strengths and weaknesses, it is not appropriate for determining pay hikes, promotions or demotion.

8. Compensation and Benefits:

Developing an effective and appropriate compensation system is an important part of the HRM process, because it can help attract and retain competent and talented individuals who help the organization accomplish its mission and goals. Organizational compensation can include many different types of rewards and benefits such as base wages and salaries, wage and salary add-on, incentive payments, and other benefits.

Another system uses skill-based pay system which rewards employees for the job skills and competencies they can demonstrate. Skill based pay system seems to mesh nicely with the changing nature of jobs and today’s work environment. In this new world where skills and knowledge are what really count, it does not make sense to treat people as job holders. It makes sense to treat them as people with specific skills and to pay them for their skills.

Staffing Process – Estimating Manpower Needs, Recruitment, Selection, Placement, Orientation, Training and Development

(i) Estimating manpower requirements

(ii) Recruitment

(iii) Selection

(iv) Placement and orientation

(v) Training and development.

(i) Estimating Manpower Requirements:

The very first step in staffing is to plan the manpower required by an organisation. It involves forecasting and determining the future manpower needs of the organisation. Two aspects need to be taken into account while determining manpower requirement—type of employees and number of employees.

The manpower requirements of an organisation are estimated keeping in view the present activities along with the future plans. Manpower requirements are estimated with the help of workload analysis and workforce analysis.

a. Workload analysis – It enables an assessment of the number and type of human resources necessary for the performance of various jobs and accomplishment of the organisational objectives.

b. Workforce analysis – It estimates the number and type of human resources available. It would reveal whether the organisation is understaffed, overstaffed or optimally staffed.

(ii) Recruitment:

Recruitment is the process of searching and motivating a large number of prospective employees for a particular job in an organisation. Recruiting occurs at the initial stage of employment, which begins with the search for suitable candidates and ends with the receipt of applications.

(iii) Selection:

This is the screening step of staffing. Under the process of selection, suitable applicants are selected out of a large number of them.

Employee selection involves a series of steps:

a. Preliminary Screening

b. Selection Test

c. Employment Interview

d. Reference & Background Checks

e. Selection Decision

f. Medical Examination

g. Job Offer

h. Contract of Employment.

(iv) Placement and Orientation:

Placement involves putting the selected man at the right place considering his aptitude and ability. Placement is said to be the process of fitting the selected person at the right job or place, i.e., fitting square pegs in square holes and round pegs in round holes. Once he is fitted into the job, he is given the activities he has to perform and also told about his duties.

Orientation is also known as induction. It means introducing the newly-selected employee, i.e., to various facets of the company his job, other jobs, nature of products, policies, rules and existing employees, etc.

The main aim of conducting orientation is to build up confidence and trust of the employee in the new organisation, so that he becomes a productive and an efficient employee of the organisation and contributes to the achievement of the organisational goals.

(v) Training and Development:

The term training implies a systematic procedure of imparting knowledge and skills for a specific job. It benefits both the organisation and the employees. Training increases the skills and abilities of employees to perform the required job. Training is a continuous and never-ending process because there is no end to learning.

Staffing Process – 6 Steps Involved in the Staffing Process

The following steps are involved in the staffing process:

1. Manpower Planning:

The staffing process starts with an evaluation of the human resource requirement of the organisation, both in terms of number of personnel required along with the educational requirement and experience. The management has to identify the job responsibilities and define the expected output in terms of abilities and requirements from the required future staff. It is also known as Man-power Requirements Planning. When a company does manpower planning, it also considers the demand forecasts and production schedule to get an overview of how much manpower it will require to meet the required production level.

2. Recruitment:

Next is the recruitment stage. Recruitment-can be defined as the process of finding and attracting candidates that have the potential to be the assets of the organisation. It simply means searching for suitable candidates.

3. Selection:

Recruitment is followed by selection. This process involves assessment and evaluation, choosing the right candidate from a number of suitable ones. Certain processes and procedures go into making sure that the right candidate is selected. The process of selection begins by screening or vetting of applications received.

Once the applications are vetted, the ones that are found to have potential are separated and these candidates may be shortlisted for a written test. However, not all organisers hold a written test. Some may call candidates for a formal preliminary interview. They may have more than one interview before the last and final one. After the last interview or just before the last interview, past work references may be looked into and medical tests may have to be undergone. In the last stage of selection, the candidate is given the appointment letter.

4. Placement:

It is the process of putting the selected person at the right job or place. Once the chosen person is shown his place in the organisation, all the activities and duties to be performed are given to the new hire. The newly appointed candidate is then after asked to attend an orientation session by the human resource department to get acquainted with the organisation.

5. Orientation:

The aim of orientation is to build up confidence, morale and trust of the employee in the new organisation with the main idea of so that he becomes a productive and an efficient employee of the organisation and contributes to the organisational success. The nature of orientation varies with the organisational size. A smaller organisation may have a more informal orientation session and a larger organisation may choose to go for a more formalised orientation program.

6. Training and Development of Employees:

Training is a process which enhances the skills, capabilities and knowledge-base of the new employee for desired job performance. An employee is in a better position to discharge the allotted duties after getting trained. However, training is a continuous process and goes on throughout the employment span of the employee. The period of training may start after an employee gets done with the orientation programme. The objective is to change the perspective of the new hire towards the job and psychologically prepare the employee to work in tandem with organisational goals.

Staffing Process

Staffing process consists of a series of steps which are as follows:

Process # 1. Procurement:

This is the first operative function of human resource management. Procurement is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organisational objectives.

It covers the functions such as:

i. Manpower planning,

ii. Recruitment and selection,

iii. Induction.

i. Manpower Planning:

E.W. Vetter says that a process by which an organisation should move from its current manpower position to its desired manpower position, through planning, management strives to have the right number and right kind of people at the right places, at the right time, doing things which result in both the organisation and the individual receiving maximum long run benefits.

Thus, the process by which an organisation ensures that it has the right number and kind of people at right places at the right time is known as manpower planning. It will help the organisation to achieve its overall objectives effectively and efficiently. Manpower planning translates the organisations objectives and plans into number of workers needed to meet these objectives. In other words, manpower planning is a strategy for procurement, development and allocation and utilisation of organisations human resources.

ii. Recruitment and Selection:

Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.

It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation. It is often termed positive in that it stimulates people to apply for jobs to increase the ‘hiring ratio’ i.e., the number of applicants for a job. Recruitment involves seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen.

Recruitment is the process to find out all the prospective employees, who can match with the organisations objective and try to make a part of those personnel as employees of the organisation.

Thus an effective selection procedure is a non-random process because those selected have been chosen on the basis of the assumption that they are more likely to be “better” employees than those who have been rejected.

The Selection procedure is concerned with ensuing relevant information about an application. This information is secured in a number of steps. The objective of selection process is to determine whether an applicant is suitable for a job or not.

A procedure may be compared to a series of successive hurdles or barriers, which an applicant must chase. There are intended as screens, and they are designed to eliminate an unqualified applicant at any point in the process. This technique is known as successive hurdles technique. Every selection procedure does not include all these hurdles. The complexity of a process usually increases with the level and responsibility of the position to be filled.

iii. Induction:

Induction is the process of inducting a new employee into the new social setting of his work.

The step should take into account two major objectives:

(i) Familiarizing the new employee with his new surroundings and company rules and regulations.

(ii) Integrating his personal goals with the organizational goals.

Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work.

After the selection of a new employee it becomes necessary to introduce him with the organisation and its environment. This is due to the problem of adjustment and adaptability to the new surroundings and environment. Further lack of knowledge, absence of information about the new Environment, cultural gap, behavioral variations, different levels of technology, variations in the requirements of the job and the organisation also disturb the new employer.

Further induction is essential as the new employee may feel shy, nervousness, insecure and disturbing. It decreases the turnover and quality. Therefore induction makes a pivotal role in acquainting the new employees to the new environment, company rules and regulations.

Process # 2. Development:

Development practices are process of improving, moulding, and changing the skills, knowledge, creative ability, aptitude, attitude, values commitment etc., based on present and future job and organizational requirements. This function includes training and development, career planning and development, internal mobility and organisational development.

i. Training and Development:

Training is the corner stone of sound management, for it makes employees more effective and productive. It is actively and intimately connected with all the personnel or managerial activities. It is an integral part of the whole management programme, with all its many activities functionally interrelated.

Management development programmes seem to give participants a wider awareness, an enlarged skill and enlighten altruistic philosophy and make enhanced personal growth possible. Training is a short term process utilising a systematic and organised procedure by which non-managerial personnel learn technical knowledge and skills for a definite purpose.

Development is a long-term educational process utilising a systematic and organised procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose.

Training is a function of management by which non-managerial personnel are mainly involved. This is a short-term process in which they improve their knowledge and skill. Development is a broad term it includes Training also. This is mainly related to the managerial staff.

In this the conceptual skill of the concern personnel is taken for the improvement. These two are very important for the smooth functioning of the organisation. If these two are in the satisfactory condition then the organisation will be on the way of success.

ii. Career Planning and Development:

When any Individual joins the organization then he becomes very conscious about his career. In this way he or she wants to develop him at a satisfactory level. Edwin B. Fillipo defined a career as a sequence of separate but related work activities that provides continuity, order and meaning in a pension’s life. Wrether and Davis defined various terms of career planning as given hereunder. A career path is the sequential pattern of jobs that form a career. Career goals are the future positions one strives as part of a career. Career planning is the process by which the employee selects as career goals and the path to these goals. Career development is those personal improvements one undertakes to achieve a personal career plan. Therefore A career has some goals and for the fulfillment of these goals, Individual works hard and develops himself to the maximum level.

iii. Promotion and Demotion:

Promotion is advancement of an employee to a better job-better in terms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay or salary. Arun Monappa and Mirza S. Saiyadain defined promotion as – “The upward reassignment of an Individual in an organization’s hierarchy, accompanied by increased responsibilities, enhanced status and usually with increased income though not always so.”

Promotion could be used as a tool for motivation and it also helps to ensure cordial relation in the organisation. In promotion the employee gets more authority and responsibility. It boosts his morale because his status is upgraded in this process.

Demotion is a down ward movement of an employer in the organisational hierarchy with lower pay, status or responsibilities. This is opposite of promotion, Demotion has been defined as the “assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. In the demotion the status, salary and responsibilities of employees are decreased by the management or employer. This practice happens generally in the case of punishment.”

iv. Performance Appraisal:

Performance appraisal is a method of evaluating of employees at the workplace, including quantitative and qualitative aspects of job. It includes performance appraisal, promotions and demotions.

This is a common practice of all societies to appraise the performance of Individuals, groups and organizations. These appraisal processes are either structured and formally sanctioned or formal and integral part of daily activities. Performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirements.

Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. It is the process in terms of the requirements of the job for which he is employed for purpose of administration including placement, selection for promotions providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.

Therefore, performance appraisal is a process to get the feedback about the employees, and employees related all factors. They could be quantitative and qualitative. This also insures to work more efficiently and effectively by the employees to achieve the organisation goals.

v. Compensation Practices:

It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, and social security.

Wage and Salary Administration:

Wage and salary administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, surveys of wage and salaries, analysis or relevant organisational problems, development and maintenance of wage structure, establishing rules for administering wages, wage payments incentives, profit sharing, wage changes and adjustments, supplementary payments, control of compensation costs and other related items.

Wage and salary are often used interchangeably. But ILO defined the term wage as – “The remuneration paid by the employer for the services of hourly, daily, weekly and fortnightly employees.” It also means the remuneration paid to production and maintenance or blue colour employees. The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis.

The distinction between wage and salary does not seem to be valid in now days of human resources approach where all employees are treated as human resources and are viewed at par. As such, the term wage or salary can be defined as the direct remuneration paid to an employee compensating his services to an organisation. Salary is also known as basic pay.

Fringe Benefits:

Fringe benefits are various extra benefits provided to employees in addition to the compensation paid in the form of wage or salary. Cockner defined fringe benefits as – “those benefits which are provided by an employer to or for the benefit of an employee and which are not in the form of wages, salaries and time related payments.”

The ILO described fringe benefits as – “wages are often augmented by special cash benefits, by the provision of medical and other services or by payments in kind, that forms part of the wage for expenditure on the goods and services. In addition workers commonly receive such benefits as holidays with pay; low cost means, low rent housing etc., such additions to the wage proper are sometimes referred to as fringe benefits. Benefits that have no relation to employment or wages should not be regarded as fringe benefits even though they may constitute a significant part of the worker’s total income.”

So fringe benefits could be defined as monetary and nonmonetary benefits provided to the employees during and post-employment period, which are connected to with employment but not to the employees’ contributions to the organisation. There are so many benefits, which motivate the employees of the organisation to stay and do their job in a satisfactory manner.

Staffing Process – 9 Steps Undertaken for the Efficient Conduct of the Staffing Function

The efficient conduct of the staffing function involves the following steps:

Step # 1. Estimating Current and Future Manpower Requirements.

This is concerned with human resource planning which seeks to determine the requirement of different types of manpower.

It involves the following three steps:

(i) Preparing a human resource inventory of the organisation employees;

(ii) Forecasting future human resource need of various departments or divisions; and

(iii) Chalking out a programme of action to make necessary provision for the required human resources.

Step # 2. Preparing Job Analysis:

A job analysis is a study of what employees who hold various job titles do. It is necessary in order to recruit and train employees with the necessary skills to do the job. The purpose of job analysis is to determine, by observation and analysis, the basic elements of a job. Specialists, who do it, interview job occupants about what they do, observe the flow of work and learn how results are accomplished. After conducting proper job analysis the manager comes to know the qualifications and capabilities of employees needed to perform a job.

Step # 3. Recruitment:

At the same time, nearly every organisation has to think about how to find the right kind of people. Recruitment is the set of activities for obtaining the right number of qualified people at the right time. Its purpose is to select those who best meet the needs of the organisation. In other words, it is the process of locating and attracting qualified applicants for jobs lying vacant in the organisation.

Step # 4. Selection:

Whether the recruitment process turns up a few job applicants or thousands, now the human resource manager has to turn to the selection process, i.e., the screening of job applicants to hire the best candidates. Selection is a process of gathering information and deciding who should be hired, under the present legal guidelines, to serve the best interests of both the individual and the organisation. Essentially this becomes an exercise in prediction. Selection of the right candidates for various jobs is based on receiving and screening of application, written tests, interviews and medical tests of those who are selected.

Step # 5. Placement and Induction:

When a new employee comes to join his (her) duty in an organisation for the first time he has to be placed on the job for which he has been selected. Placement ensures that the right person is put on the right job. If a new employee fails to perform his job well he may be given some training or transferred to some other division or department to do a different job, for which he may be more suitable.

Induction is the process of introducing or orienting a new employee to the organisation. The basic objective is to make new employees familiar with their work units (or departments, supervisors and fellow employees). They are also to be informed about working hours, safety measures to be taken at the work place, tea or coffee breaks, lunch period, detailed procedure for taking leaves (paid or unpaid), medical allowances and transport facilities, leave encashment facility as also leave travel concessions.

Step # 6. Training and Development:

As technology and other innovations change the workplace, companies must undertake training programmes which are often quite sophisticated. The term ‘training and development’ includes all attempts to improve organisational productivity by increasing an employee’s ability to perform. A well-designed training programme often leads to higher retention rates (i.e., lower turnover rates), increased productivity of human resources, and greater job satisfaction.

While training focuses on short-term skills, development focuses on long-term abilities of employees. Training is of two main types – (i) on- the-job, i.e., training at the workplace which lets the employee learn by doing or by watching others for a while and then imitating them; and (ii) off-the-job, i.e., training programmes away from the workplace which develops any of a variety of skills or fosters personnel development.

While on-the-job methods are more useful for operative personnel, off-the-job methods are quite effective for supervisors.

Step # 7. Performance Appraisal:

Management must be able to determine whether the workers are doing their jobs effectively and efficiently, with a minimum of errors and disruptions. They do so by using a performance appraisal. It is a method of evaluation which measures employee performance against some established standards. The objective is to make decisions about promotions, compensation, training or termination. Transparent and unbiased promotion of the staff are sought to be made on the basis of it.

Step # 8. Promotion and Career Planning:

In addition, the staffing function includes the formulation of policies for promoting employees of different categories as also their career plans. Promotion refers to moving an employee to a higher- level position. This is the most obvious way to recognise that person’s superior performance (apart from giving him pay hikes or salary increases and bonuses).

Since employees get the necessary motivation by being promoted to higher positions in the organisation chart with greater responsibility and pay hike it is important to lay down career paths for them. For example, the career path for an accounts clerk involves promotion to the position of accounts officer, then to senior accounts officer, subsequently to the position of chief accountant, then deputy controller of finance and ultimately financial controller or finance manager (i.e., the head of the finance department).

Step # 9. Transfer:

Finally, staffing also includes transfer. It is a movement of any employee to a different job with similar or almost the same responsibility.