Please refer to the Staffing Revision Notes given below. These revision notes have been designed as per the latest NCERT, CBSE and KVS books issued for the current academic year. Students will be able to understand the entire chapter in your class 12th Business Studies book. We have provided chapter wise Notes for Class 12 Business Studies as per the latest examination pattern.
Revision Notes Chapter 6 Staffing
Students of Class 12 Business Studies will be able to revise the entire chapter and also learn all important concepts based on the topic wise notes given below. Our best teachers for Grade 12 have prepared these to help you get better marks in upcoming examinations. These revision notes cover all important topics given in this chapter.
Meaning of Staffing
Staffing has been described as the managerial function of filling and keeping filled the positions in the 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.
(i) Estimating the Manpower Requirements:
For the purpose of understanding the manpower requirements, the organisation has to do two analysis such as workload analysis and workforce analysis. Workload analysis means the assessment of number and type of human resources necessary for the performance of various jobs and accomplishment of objectives. Workforce analysis would reveal the number and type of human resource presently available within the organisation as well as helps to understand whether the organisation is overstaffed or understaffed. A situation of overstaffing will make the organisation to for employee removal or transfer whereas a situation of understaffing would necessitates the organisation to start the recruitment process.
(ii) Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. Both internal and external sources of recruitment may be explored. Internal sources may be used to a limited extent. For fresh talent and wider choice external sources are used.
(iii) Selection: Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. Those who are able to successfully negotiate the test and the interviews are offered an employment contract, a written document containing the offer of employment, the terms and conditions and the date of joining.
(iv) Placement and Orientation: Placement refers to the employee occupying the position or post for which the person has been selected. Orientation is the process introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.
(v) Training and Development: Training means act of improving knowledge and skills for doing a specific job. The employees are imparted training to improve their performance and to update their knowledge to match the requirement of external environment. Development means growth of a person in all respects. It is a process by which managers and executives acquire not only skills and competence of present job but also the capabilities for future tasks of increasing difficulty and scope.
(vi) Performance Appraisal:- Performance appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. The employee is expected to know what the standards are and the superior is to provide the employee feedback on his/her performance. The performance appraisal process, therefore, will include defining the job, appraising performance and providing feedback.
(vii) Promotion and career planning:- It becomes necessary for all organisations to address career related issues and promotional avenues for their employees. Promotion refers to being placed in positions of increased responsibility. They usually mean more pay, responsibility and job satisfaction.
(viii) Compensation:- Compensation refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions and bonuses and indirect payments like employer paid insurance and vacations.
Recruitment refers to the process of finding possible candidates for a job or a function. It has been defined as ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.’
SOURCES OF RECRUITMENT
There are two sources of recruitment – Internal and External.
There are two important sources of internal recruitment, namely, transfers and promotions, which are discussed below:
(i) Transfers: It involves shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee.
(ii) Promotions: Business enterprises generally follow the practice of filling higher jobs by promoting employees from lower jobs. Promotion leads to shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay. Promotion is a vertical shifting of employees. This practice helps to improve the motivation, loyalty and satisfaction level of employees.
An enterprise has to tap external sources for various positions because all the vacancies cannot be filled through internal recruitment. External recruitment provides wide choice and brings new blood in the organisation. The commonly used external sources of recruitment are discussed below:
(i) Direct Recruitment: Under the direct recruitment, a notice is placed on the notice-board of the enterprise specifying the details of the jobs available. Jobseekers assemble outside the premises of the organisation on the specified date and selection is done on the spot.
(ii) Casual Callers: Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job-seekers can be a valuable source of manpower. A list of such job-seekers can be prepared and can be screened to fill the vacancies as they arise.
(iii) Advertisement: Advertisement in newspapers or trade and professional journals is generally used when a wider choice is required. Advertisement gives the management a wider range of candidates from which to choose. Advertisements may be placed in leading newspapers.
(iv) Employment Exchange:- Employment exchanges run by the Government are regarded as a good source of recruitment for unskilled and skilled operative jobs.
(v) Placement Agencies and Management Consultants: In technical and professional areas, private agencies and professional bodies appear to be doing substantive work. Placement agencies provide a nationwide service in matching personnel demand and supply.
(vi) Campus Recruitment: Colleges and institutes of management and technology have become a popular source of recruitment for technical, professional and managerial jobs. Recruitment from educational institutions is a well-established practice of businesses. This is referred to as campus recruitment.
(vii) Recommendations of Employees: Applicants introduced by present employees, or their friends and relatives may prove to be a good source of recruitment. Such applicants are likely to be good employees because their background is sufficiently known.
(viii) Labour Contractors: Labour contractors maintain close contacts with labourers and they can provide the required number of unskilled workers at short notice.
(ix) Advertising on Television: The practice of telecasting of vacant posts over Television is a popular source of recruitment. The detailed requirements of the job and the qualities required to do it are publicised along with the profile of the organisation where vacancy exists.
(x) Web Publishing: Internet is one of the common source of recruitment these days. There are certain websites specifically designed and dedicated for the purpose of providing information about both job seekers and job opening.
Selection is the process of identifying and choosing the best person out of a number of prospective candidates for a job.
Process of Selection
The important steps in the process of selection are as follows:
(i) Preliminary Screening: Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the information supplied in the application forms.
(ii) Selection Tests: An employment test is a mechanism (either a paper and pencil test or an exercise) that attempts to measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality.
Important Tests Used for Selection are:
(a) Intelligence Tests, (b) Aptitude Test, (c) Personality Tests, (d) Trade Test and (e) Interest Tests.
(iii) Employment Interview: Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job.
(iv) Reference and Background Checks:- Details, background and additional information about the candidates can be obtained from the previous employers, known persons, teachers and university professors can act as references.
(v) Selection Decision: The final decision has to be made from among the candidates who pass the tests, interviews and reference checks.
(vi) Medical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test. The job offer is given to the candidate being declared fit after the medical examination.
(vii) Job Offer: The next step in the selection process is job offer to those applicants who have passed all the previous hurdles. Job offer is made through a letter of appointment/confirm his acceptance
(viii)Contract of Employment: – It is a written document consisting of job title, duties, responsibilities, date when continuous employment starts and the basis of calculating service, rates of pay, allowances, working hours, leave rules, grievance procedures, disciplinary procedures etc. It has to be signed by the employee.
Training and Development
Meaning of Training and Development: –
Training is the process of improving the job knowledge and skills of employees so as to enable them to perform well. It is an organized activity wherein people acquire knowledge and skills for doing a specific job. Development is the process by which managers and executives acquire not only skills and competence in their present jobs but also capabilities for future tasks of increasing difficulty and scope. It refers to overall growth of the employees
There are various methods of training. These are broadly categorised into two groups: On-the-Job and Off-theJob methods. On-the-Job methods refer to the methods that are applied to the workplace, while the employee is actually working. Off-the-Job methods are used away from the work place.
On the Job Methods
(i) Apprenticeship Programmes: Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill.
(ii) Coaching: In this method, the superior guides and instructs the trainee as a coach. The coach or counsellor sets mutually agreed upon goals, suggests how to achieve these goals, periodically reviews the trainees progress and suggests changes required in behaviour and performance.
(iii) Internship Training: It is a joint programme of training in which educational institutions and business firms cooperate. Selected candidates carry on regular studies and work in some factory or office to acquire practical knowledge and skills.
(iv) Job Rotation: This kind of training involves shifting the trainee from one department to another or from one job to another. This enables the trainee to gain a broader understanding of all parts of the business and how the organisation as a whole functions.
Off the Job Methods:-
(i) Class Room Lectures/Conferences: The lecture or conference approach is well adapted to conveying specific informationrules, procedures or methods.
(ii) Films: They can provide information and explicitly demonstrate skills that are not easily represented by the other techniques.
(iii) Case Study: Taken from actual experiences of organisations, cases represent attempts to describe, as accurately as possible real problems that managers have faced.
(iv) Computer Modelling: It simulates the work environment by programming a computer to imitate some of the realities of the job and allows learning to take place without the risk or high costs that would be incurred if a mistake were made in real life situation.
(v) Vestibule Training: Employees learn their jobs on the real equipment they will be using, but the training is conducted away from the actual work floor. This is usually done when employees are required to handle sophisticated machinery and equipment.
(vi) Programmed Instruction: This method incorporates a prearranged and proposed acquisition of some specific skills or general knowledge. Information is broken into meaningful units and these units are arranged in a proper way to form a logical and sequential learning package i.e. from simple to complex. The trainee goes through these units by answering questions or filling the blanks.