ABFM CAIIB notes – Unit 4

UNIT 4 – Staffing

Meaning of Staffing

Staffing refers to the continuous process of finding, selecting, evaluating, and developing a working relationship with current or future employees. The main goal of staffing is to fill the various roles within the company with suitable candidates.

Functions of Staffing

1. Obtaining qualified individuals for various job positions.
2. The process of staffing ensures that the most qualified candidates are selected for open positions, which results in greater levels of both productivity and performance.
3. It contributes to the promotion of the most effective and efficient usage of human resources in a variety of ways.
4. The successful recruitment of the right person raises the level of job satisfaction and morale experienced by workers.
5. The process of staffing serves to guarantee that human resources are used more effectively.
6. It secures the organization’s continued existence as well as its continued expansion using development managers.
7. Proper people can be placed in the right jobs with the help of staffing services.

Objectives of Staffing

1. To get the appropriate employees for the appropriate positions.
2. To educate and cultivate the available human resources.
3. To design policies for personnel matters, such as transfer, promotion.
4. To effectively shape the available human resources and to motivate those resources toward better levels of performance.
5. To create a positive and productive working connection between employers and employees as well as between different groups of employees.
6. To ensure that the demands of the workers are met to the workers’ satisfaction so that they will become dedicated and loyal to the organisation.
7. To keep positive human interactions in place in order to foster strong morale among the workforces.

Nature of Staffing

(1) Concentrated on Individuals: The process of Staffing is concerned with the effective utilisation of an organisation’s Human Resources. It encourages and incentivises each worker to contribute to the fullest extent possible toward the accomplishment of the organization’s goals and objectives.

(2) Oriented Towards Development: This means that the focus is on maximising the potential of the employees working for the organisation. Their interests, personality, and talents will all mature as a result of this.

(3) An all-pervasive function: Staffing is essential to the operation of every business. It is a significant component of the overall management system that has the capability of being implemented in both for-profit and not for-profit businesses.

(4) An ongoing procedure: The process of hiring new employees is an ongoing one that never comes to a conclusion.

(5) Human objectives: This helps employees reach their full potential so that they can experience the greatest amount of satisfaction from the work that they do.

(6) Focused on both individuals and groups to achieve goals: Staffing is concerned with employees in both their individual and group capacities in order to achieve goals.

(7) Creating an environment conducive to productive work: It creates an environment conducive to productive work inside the firm, one in which every worker puts his or her best efforts to the accomplishment of organisational goals.

(8) Its multidisciplinary character: Staffing is a field that originated in the social sciences. It incorporates theories and ideas derived from a variety of academic fields, including sociology, anthropology, management, and psychology.

(9) An essential component of general management: The hiring and firing of employees are essential components of general management.

(10) A blend of art and science: The process of hiring new employees is grounded in the field of human engineering. It can be thought of as an organised body of knowledge that is made up of principles and methods. It is also an art because it requires the ability to interact with different types of individuals.

Features of Staffing

1. Involvement with Human Beings
2. Distinct Managerial Function
3. A Necessary Activity at All Managerial Levels
4. Associated to Social Responsibility
5. Impact of Internal and External Environment

Facets of Staffing

There are three primary facets of staffing, which are as follows:

1. Recruitment: Recruitment is a positive process that seeks to attract a bigger number of people with ideal profiles to apply for positions that are empty in the business. The organization’s goal with recruitment is to fill positions as quickly as possible. The more people that apply for a job, the better your chances are of finding an applicant who meets your requirements.
2. Selection: Selection is a procedure that eliminates candidates by carefully reviewing their applications and choosing those who are the best fit for the open position. The selection process is different from the recruitment process in that it rejects applications.

iii. Training: Training is another constructive activity that improves the employees’ knowledge and abilities, as well as their capacity to do their jobs more effectively.

Recruitment

Staffing refers to the process of hiring individuals who are the most qualified for a job whereas recruiting is the process of finding potential applicants for a job and encouraging them to apply for the vacant post.

Recruiting and staffing are two different processes but are often used interchangeably.

The process of recruitment and staffing is what constitutes the method by which companies find employees to fill open positions. Recruitment takes place at a variety of stages throughout a company’s existence, although it is at its most intense when a new business is launched or when an existing business undertakes expansion or new directions.

Primary Stages involved in Recruitment Process

• Determining the need for hiring
• Conceiving a recruitment strategy
• Drafting a job description
• Publicising the position
• Recruiting candidates for the position
• Examining applications
• Conducting a phone interview or initial screening
• Conducting interviews
• Evaluating candidates
• Conducting a background check
• Making a decision
• Checking references
• Making an offer of employment
• Hiring candidates
• On boarding of candidates

Types of Recruitment

(1) Internal Recruiting: The process of filling open positions within a company with current staff members from that organisation is known as internal recruiting.

(2) Retained Recruiting: When a company engages a recruiting firm, they can do so in numerous different ways; one of the most prevalent ways is retained recruiting. When an organisation hires a recruiting firm to fill a vacant position, the organisation is responsible for paying an upfront fee to the recruiting firm.

(3) Contingency Recruiting: This type of recruiting, like retained recruiting, requires the assistance of an outside firm. In contrast to retained recruiting, contingency hiring does not require an upfront payment. Instead, the recruitment company is only compensated when one of the candidates they represent is offered and accepts a position within an organisation.

(4) Recruiting for Staffing Agencies: Staffing recruiters are employed by staffing agencies. Staffing and recruiting involve pairing skilled job seekers with open positions that meet their qualifications. In addition, most of the jobs that staffing companies fill are either temporary or only available for a limited time.

(5) Outplacement Recruiting: When it comes to recruitment, outplacement is a type of advantage that is often sponsored by employers and assists former employees in making the transition into new jobs. The purpose of outplacement recruiting is to equip people who have lost their jobs with the tools necessary to locate new employment or pursue other lines of work.

(6) Reverse Recruiting: This is a procedure in which an employee is urged to seek employment with a new business that offers a better fit for their skill set. This process refers to the practice of encouraging an employee to seek employment with a different organisation. Workers who need assistance with this procedure can take advantage of our Reverse Recruiting service, which offers reviewing of resumes, holding mock interviews, and providing in-depth explanations of various job roles and responsibilities.

Selection

The phase of the staffing process known as selection is the component of the hiring procedure that entails selecting an employee to hire from a shortlist of exceptional applicants who have been reduced.

Throughout the process of recruiting, there are multiple opportunities for selection to take place.

Managers shortlist the applicants to be contacted based on the credentials of their applications and decide about the applicants who are to be called for interviews, and ultimately which applicants to be hired for available positions. If you have a good understanding of the many levels of selection and what to look for at each level, you will be better able to choose the right job candidates for your company’s long-term success.

Selection Process

(1) Preliminary Interview: This is a very generic and basic interview that is held to exclude the candidates who are utterly unfit to work in the organisation. The purpose of this interview is to determine who will move on to the next stage of the interview process.

(2) Taking Applications: Candidates for open positions submit their resumes and cover letters to the business in order to be considered for employment. The application provides the interviewers with information about the candidates, such as their biographical data, their work experience, their hobbies and interests.

(3) Examining the Applications: Once the applications have been received, a special screening committee examines them in order to select potential candidates from among the applications who will then be contacted to schedule interviews.

(4) Employment Tests: For a company to determine whether or not an individual is qualified for a certain job, the company must first evaluate the individual’s abilities. This is accomplished by the administration of numerous job exams, including IQ tests, aptitude tests, competence tests, personality tests, and so on.

(5) Formal Interview: Interviews for jobs are conducted to determine in great depth a candidate’s skill set and whether they have the capacity to work in the business. The purpose of an employment interview is to determine whether the candidate is suitable for the position, as well as to provide the candidate with information regarding the work profile and the responsibilities that would be expected of the potential employee. Interviews are an essential part of the hiring process because they help employers choose the most qualified candidates for open positions.

(6) Verification of References: The individual who provides a possible employee›s reference is also a very important source of information, so we must check with them.

(7) Medical Tests: Employers can determine whether or not any of the potential applicants are physically and psychologically fit to undertake the tasks associated with their professions with the help of medical examination.

(8) Final Selection and Appointment: It consists of a letter announcing the final selection and appointment. An appointment letter is delivered or emailed to the employee to advise his selection for the job once the candidate has demonstrated that they are qualified for the position by passing all written tests, interviews, and medical examinations. The terms of employment, including working hours, remuneration, and leave benefits, are listed in their entirety in the letter of appointment. It is common practice to hire workers on a conditional basis or on probation, with the understanding that they will be hired permanently or confirmed in service if the company is satisfied with their performance.

Reasons of Training

(a) Training is provided to new candidates that join an organisation. Through this training, they become acquainted with the mission and vision of the organisation, as well as the laws and regulations, and the working circumstances.

(b) The current staff members receive training to update their skills and expand their knowledge base.

(c) Training is provided to accommodate for any updates or alterations that may be made to the technology to keep up with those changes. Examples of this include the purchase of new machinery, alterations to the manufacturing process, and the installation of computers.

(d) When advancement in one’s career and getting promotions become priorities, training is provided to employees to get them ready to share the responsibilities that come with working at a higher level.

Benefits of Training

1. Boosts Employee Morale: Training helps employees achieve job stability and job satisfaction, which in turn boosts employee morale.
2. Decreased requirement for supervision: An employee who has received adequate training will be familiar with his duties and details of his work and will require less oversight.
3. Reduction in the number of accidents: When a person has received additional training, there is a decreased likelihood of them being involved in an accident while on the job, and they also become more proficient.
4. Increased Promotion Chances: Training helps employees improve their abilities and effectiveness, which increases their chances of being promoted.
5. Increased productivity: Training helps employees become more productive and efficient, which is one of the many benefits of employee education.

Types of Training

(1) On-the-job Training: This type of training refers to the methods that are used to instruct workers while they are performing their regular duties at an organisation. “Learning by doing” is the guiding principle behind this type of instruction. On-the-job training can take many forms, such as job rotation, mentoring, and even temporary promotions, among other things.

(2) Off-the-job Training: Training that takes place in a setting that is not the employee’s normal place of employment Training that takes place in a setting that is not the employee’s normal place of employment is referred to as “off the job training.” It is typically utilised if new workers are hired. Workshops, seminars, conferences, and other similar events are all examples of non-work-related training opportunities.

Retention and Development

Practices that contribute to retention arise in every area of HR, and all positions within an organisation will need to collaborate with one another to develop and implement retention plans that incorporate multiple facets. It is possible that depending on the circumstances, both broad-based and focused techniques, or even a combination of the two, may be appropriate.

Effective Practice in Retention

1. Hiring: Practices regarding talent acquisition can have a significant impact on turnover, and a significant body of research indicates that one way to reduce turnover among newly hired employees is to give applicants an accurate preview of the work they will be doing as part of the recruitment process.
2. Possibilities of Socialising: New employees have a greater chance of remaining with an organisation if they are exposed to socialisation practices, which are often given as part of an integrated on boarding and integration programme.
3. Training and development: Employees who are not provided with the opportunity to regularly upgrade their skill sets are more likely to leave a company that does not provide these possibilities.
4. Compensation and rewards: Even though pay levels and job satisfaction are only moderate predictors of whether an employee would leave an organisation.
5. Fair Supervision: Fair treatment by a supervisor is the single most critical factor in determining whether an employee will remain in their position, according to several studies.
6. Employee involvement: Involved and engaged employees are content with their jobs, love their work and the organisation in which they are employed, believe that their job is significant, take pride in their company, and believe that their employer values the contributions that they make.

Knowledge and Learning Management

Knowledge Management is such an essential concept, that the term has even been given its own acronym, which is KM for short. The processes of generating, exchanging, utilising, and managing information and knowledge inside an organisation are collectively referred to as “knowledge management.”

Performance Appraisal

The phrase “performance appraisal” refers to the periodic examination of an employee’s contribution to a company in terms of both job performance and overall contribution. An employee’s abilities, achievements, and growth or lack thereof, depending on the results-are analysed during a performance assessment, which is also known as annual review, performance review or evaluation, or employee appraisal.

Objectives of Performance Appraisal

• The performance appraisal system is responsible for maintaining the records that are needed to establish the employee’s compensation and the structure of their salary structure.
• It is quite helpful to discover the strengths and limitations of the employees, as this assists in assigning the appropriate individual to the appropriate position.
• It gives one access to the potential that already exists inside them for future expansion and development.
• It provides the essential feedback regarding the performance of the employee as well as their genuine contribution to the development of the organisation.
• It provides the HR department with direction regarding the training requirements of the staff members.
• It shapes the employees’ approach to their work and instils a sense of responsibility for their work.

Advantages of Performance Appraisal

• It makes it easier for managers to determine which staff member deserve promotions and which should be let go because of their lack of productivity.
• It is useful information for the company to consider when determining the employee’s salary. The records of the employee’s performance review can also be used to make decisions regarding additional perks and allowances, and these decisions can be based not only on the employee’s performance but also on the employee’s additional efforts.
• Particular measures can be adopted in order to foster the growth of the staff members. The employee’s areas of weakness will be brought to light through the performance review process, providing the organisation with the information it needs to design and implement an appropriate training programme.

Methods of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality of performance. Each of the methods is effective in a relative manner for various organisations. Broadly, all methods of appraisals can be divided into two different categories.

• Past-Oriented Methods
• Future-Oriented Methods

Past-Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude, etc. Each scale ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived.
2. Trait Analysis: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared.
3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false.
4. Forced Distribution Method: Here employees are clustered around a high point on a rating scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that the performance is conformed to normal distribution. Assumption of normal distribution, unrealistic, errors of central tendency may occur.
5. Critical Incidents Method: The approach is focused on certain critical behaviours of employees that makes all the difference in the performance. Supervisors as and when they occur record such incidents.
6. Confidential Records: Here the report is given in the form of Annual Confidential Report (ACR) and may record ratings with respect to following items; attendance, self-expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness, etc.
7. Pen portrait: The assessor pictures in writing about the assessee, regarding his qualities and performance as well as his potential. Armies use this method in evaluating cadets.

Future- Oriented Methods

1.Management by Objectives: A concept popular till recently and introduced by the management Guru, Peter Drucker,

where performance is rated against the achievement of objectives stated by the management. MBO process goes as under.

2. Assessment Centre Approach Method: Assessments are made to determine employee potential for the purposes of promotion. The assessment is generally done with the help of a couple of employees and involves a paper-and-pencil test, interviews and situational exercises.

Human Resource Development

The purpose of human resource development is to enhance the efficiency of individuals, groups, and organisations through the coordinated implementation of various training, organisation, and career advancement initiatives. Through carefully orchestrated learning experiences, HRD helps individuals in companies acquire the fundamental skills necessary to accomplish their current responsibilities as well as those that will be created in the future.

Stress Management

The term “stress management” refers to a wide range of treatments and psychotherapies that are aimed at regulating the degree of stress experienced by a person, particularly the level of chronic stress, typically with the intention and the goal of enhancing day-to-day functioning.

The levels of stress can be easily measured by utilising a variety of physiological tests that are quite similar to those that are used in polygraph examinations, despite the common misconception that stress is a personal experience.

NOTE : 

Dear CAIIB Aspirants,

These notes are a part of 2024 CAIIB Video library course of ADVANCED BUSINESS & FINANCIAL MANAGEMENT  (ABFM)  by Motivational Banker. These notes are intended to help you prepare better for your CAIIB exam.

These notes are a sample version of the full PDFs prepared by team Motivational Banker.