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Revision: Principles and Functions of Management >> Staffing Business Studies Commerce (English Medium) Class 12 CBSE

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Definitions [4]

Define the term recruitment.

According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.”

Definition: Recruitment
  • "Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation". - Edwin Flippo
  • "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". - Dale Yoder

Define Casual Callers.

Many well-reputed business organisations draw a steady stream of unsolicited applicants into their offices. Such job-seekers can be a valuable source of manpower. A waiting list of such visitors may be prepared, and they may be screened to fill the vacancies as they arise. The advantage of this source of recruitment is that it avoids the cost of recruitment from other sources. However, unsolicited applicants may become a disturbance in the daily routine of the enterprise.

Definition: Selection
  • "Selection is the process of choosing from among the candidates the most suitable person for the current position or for the future position." - Dale Yoder
  • "Selection is the process of differentiating between applicants in order to identifY and hire those with a greater likelihood of success in a job." - Stoner
  • "Selection process is a managerial decision making process as to predict which job applicants will be successful if hired." - David and Robbins

Key Points

Key Points: Case Study: Management of Human Resources at Infosys
  • Infosys treats human resources as assets, even reflecting them on the balance sheet.
  • Long-term success is measured on financial and non-financial parameters, with human capital as a key non-financial asset.
  • The central HR challenge is attracting, retaining, and developing talent globally.
  • HR practices stem from leadership vision, focusing on empowerment and closeness.
  • Narayana Murthy's humble, by-example leadership directly shapes the company's HR culture.
Key Points: Staffing
  • Staffing is a key Function of Management focused on placing the right people in the right jobs.
  • It is defined as "putting people to jobs."
  • Staffing covers the full employee lifecycle — from recruitment and selection to training, promotion, and compensation.
  • It is a continuous process in all enterprises, both new and existing.
  • Human resources are the most important organisational asset, making staffing critical to performance.
  • Proper staffing leads to better performance, job satisfaction, succession planning, and optimal resource utilisation.
Key Points: Staffing as Part of Human Resource Management
  • Staffing means placing the right people in the right jobs.
  • Staffing is a generic function closely linked to organising.
  • HRM includes recruitment, job analysis, compensation, training, labour relations, grievances, welfare, and legal defence.
  • Staffing is both a line and a staff function.
  • HRM evolved from Labour Welfare Officer → Personnel Manager → Human Resource Manager.
  • Staffing process covers eight stages from manpower estimation to compensation.
Key Points: Evolution of Human Resource Management
  • HRM evolved through: Labour Welfare → Personnel Management → HRM.
  • The Industrial Revolution was the key driver of this evolution.
  • Four key roles emerged: Trade Unions, Labour Welfare Officers, Personnel Officers, HR Managers.
  • Staffing = finding + evaluating + building working relationships with people.
  • Staffing is a part of HRM and has a dual nature - both a management function and a functional area.
  • This dual nature makes staffing both a line and staff activity.
Key Points: Staffing Process
  • Estimating Manpower Requirements – Determining the number and type of staff needed.
  • Recruitment - Attracting candidates for available positions.
  • Selection - Choosing the most suitable candidates from those recruited.
  • Placement and Orientation – Placing the selected candidate in the job and familiarising them with the organisation.
  • Training and Development – Building the skills and capabilities of employees.
  • Performance Appraisal – Evaluating the work performance of employees.
  • Promotion and Career Planning – Planning the growth path of employees within the organisation.
  • Compensation - Deciding and providing remuneration for work done.
Key Points: Aspects of Staffing > Recruitment
  • Recruitment is the process of searching for and stimulating prospective employees to apply.
  • It begins after manpower planning identifies workforce needs.
  • Recruitment is a core aspect of the broader staffing function.
  • It precedes selection in the HR/staffing process.
Key Points: Sources of Recruitment
  • Recruitment is the stage before selection in the staffing process.
  • Its primary goal is attracting applicants with required qualifications in adequate numbers.
  • Four key activities: identify → assess → choose → invite applications.
  • Two types of sources: internal and External.
Key Points: Internal Sources
  • Internal sources recruit from within the organisation – no outsiders involved.
  • The four types are promotion, transfer, ex-employees, and recommendations.
  • NCERT focuses on only two types: transfer (horizontal) and promotion (vertical).
  • Transfers involve no change in pay, status, or responsibilities.
  • Promotions involve greater responsibilities, pay, facilities, and status.
  • Key merit: cheaper, faster, and familiar candidates with no induction required.
  • Key demerit: in-breeding and inability to fill all vacancies internally.
Key Points: External Sources
  • External recruitment means hiring people from outside the organisation.
  • Main sources include advertisements, campus recruitment, referrals, placement agencies, employment exchanges, and online job portals.
  • It provides a wider choice of qualified candidates and brings fresh ideas and skills.
  • It is useful when internal employees are unavailable or ineligible.
  • It is time-consuming, costly, and may reduce promotion opportunities for existing employees.
  • Employee referrals and online recruitment are widely used by companies today.
Key Points: Aspects of Staffing > Selection
  • Selection is a multi-step, negative process of choosing the most suitable candidates for a job.
  • It always follows recruitment and focuses on matching candidate qualities with job requirements.
  • Faulty selection causes absenteeism, turnover, and wastage of training costs; proper selection improves overall efficiency.
  • The selection process has eight stages: screening → tests → interview → checks → decision → medical → job offer → contract.
  • Five types of tests (intelligence, aptitude, personality, trade, interest) help assess different candidate qualities.
  • Two types of errors – reject errors and accept errors – make selection decisions critical for organisational success.
Key Points: Aspects of Staffing > Training and Development
  • Training and Development aims to improve employee performance through learning, attitude change, and skill-building.
  • It has grown in importance due to rapid technological and societal changes.
  • Benefits to organisations include productivity, reduced turnover, and preparedness for future challenges.
  • Benefits to employees include better career prospects, higher earnings, and greater job satisfaction.
  • Training focuses on specific jobs; Education is broader; Development focuses on overall growth.
  • Training is job-oriented; Development is career-oriented.
  • Some organisations prefer the terms "Learning and Development" or "Human Resource Development."
Key Points: Methods of Training
  1. Training methods are of two types: On-the-Job (learning while working) and Off-the-Job (learning away from the workplace).
  2. On-the-Job methods include apprenticeship, coaching, internship, and job rotation.
  3. These methods provide practical experience, skill development, and understanding of different job roles.
  4. Off-the-Job methods include classroom lectures, films, case studies, computer modelling, vestibule training, and programmed instruction.
  5. These methods focus on theoretical learning, simulations, and problem-solving before actual work.
  6. Both methods help employees develop skills, improve performance, and prepare for future responsibilities.

Important Questions [20]

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