Chapter 11 Staffing Principles of Management, 7e 1 P C Tripathi I P N Reddy I Ashish Bajpai
2 Learning Objectives This chapter will enable the reader to: LO-1: Understand how crucial it is to plan for right kind and number of people in an organization. LO-2: Know the sources of recruitment and their respective advantages and disadvantages. LO-3: Learn the importance of selection process and enlist the steps involved in it. LO-4: Describe the activity of placement, transfer and induction in staffing function. LO-5: Develop a contextual awareness about status of manpower planning in India. LO-6: Observe the staffing philosophies used by MNCs and types of human resource employed by them.
Staffing Phase of Management Function 3 Filling and keeping the positions provided for by the organisation structure with the right human resource/people is the staffing phase of the management function. It includes several sub-functions: Recruitment, or getting applicants for the jobs as they open up. Selection of the best qualified human resource. Training those who need further instructions to perform their work effectively or to qualify for promotions. Performance appraisal. Administration of compensation plans.
Importance and Need for Proper Staffing 4 It helps in discovering talented and competent work force It ensures greater production/activity It helps to avoid a sudden disruption of an enterprise’s production/activity run It helps to prevent under-utilization of personnel It provides information to management for the internal succession of managerial personnel
Manpower Planning 5 Right Kind of People Job Analysis Job Description Job Specification Right Number of People In Short-term Manpower Planning Long-term Manpower Planning Demand and Supply Comparison and Action Plan
Recruitment Recruitment is identifying, attracting and prompting the prospective candidates to apply for vacant positions. 6 Sources of Recruitment Re-employing former employees Friends and relatives of present employees Applicants at the gate College and technical institutions Employment exchanges Advertising the vacancy Labour unions Evaluation of Alternative Sources Time lag Recruitment ratio Employee attitude studies Correlation between different sources of recruitment and factors of success on the job Data on turnover Gross cost per hire Continued…
Recruitment 7 Internal vs. External Sources of Recruitment From the point of view of its impact on motivation, recruitment from external sources is not desirable, particularly when an adequate number of qualified persons is already available inside the organisation. On the other hand, when the internal candidates are too advanced in age, it may become imperative for the management to tap outside sources for recruitment.
Selection And Its Procedure Selection is the choosing the right person for a job. 8 Application blank Initial interview of the candidate Employment tests Aptitude / Interest / Intelligence / Performance / Personality test Checking references Physical or medical examination Final interview
Placement and Induction (Orientation) 9 The process of placing the right man on the right job is called placement . In the first phase, induction is done by the HR department which provides the employee all sorts of information relating to the company. A 10-step programme is followed in the second phase (buddy system): Greeting the newcomer Displaying a personal interest Reviewing terms of appointment Showing the newcomer around Giving additional information Explaining the importance of his job Introducing the newcomer Telling the newcomer his duties Selecting a person who can assist the newcomer Following up frequently
Manpower Planning in India 10 Focus on manpower planning Widespread organisational restructuring and rapid change in production technology Shortage of talented and skilled manpower Change in the profile of the work force Demand for change in recruitment procedures Enactment of new laws Enormous increase in the number of applicants per vacant post Number of misfits who unable to adjust Greater demand for internal promotions and career planning Incompetent employees cannot be easily dismissed Reducing employee costs/growth of contingent workforce Continued…
Manpower Planning in India 11 Sources of Recruitment in India Internal Sources: In many organisations in India, at the time of new vacancies, preference is given to people from within the organization External Sources Badli workers Employment exchanges Advertisement in newspapers Labour contractors and outsourcing Technical and other institutes Relations of existing employees Walk-in interviews Employee referrals Bureau of public enterprises Poaching or head-hunting Advertisement on the net Continued…
Manpower planning in India 12 Use of Trade and Psychological Tests by Indian Companies: Psychological tests which are extensively used in the United States are rarely applied in India. Few tests in use in the Indian industry which are standardised by Indian psychologists. Tests are sometimes devised by persons who have inadequate knowledge of psychology. There being an unusually high number of applicants for every vacancy, the main problem facing an employer in India is how to reject a majority of them without opening himself to the charge of favouritism. The rise of trade unions.
Staffing from a Global Perspective 13 An MNE can draw its rank and file employees either from the country in which it is headquartered, or from the country where its overseas operation is located, or from a third country. Most employees of MNEs are HCNs or foreign employees because they: Are most widely available Know more about the local environment Are cheaper than home country nationals Satisfy the local laws Expatriates Selection: Among the attributes that MNEs look for in an expatriate are cultural empathy, adaptability and flexibility, language skills, education, leadership, maturity and motivation.