CBSE Class XII Business Studies Fundamental Concepts

Chapter 6

(Staffing)

Discuss the meaning and importance of staffing function 4 marks

Meaning of staffing function: The term staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in an organization. This function involves the determination of the size and categories of staff requirement. It is also concerned with employing the right type of people and developing their skills through training. The staffing function focuses on maintaining and improving the manpower in an organization.

Nature of Staffing: The managerial function of staffing is of continuous nature. The managers have to give attention to the staffing needs of the organization. The staffing policy of the organization has to be developed on the basis of long term requirement of the organization.

Importance of Staffing

1. Key to other managerial functions. Staffing function is very closely related to other managerial areas of the business. It greatly influences the direction and control in the organization. The effectiveness of other managerial functions depends on the effectiveness of the staffing function.

2. Building healthy human relationships. Staffing function helps to build proper human relationships in the organization. Smooth human relations is the key to better communication and co-ordination of managerial efforts in an organization.

3. Human resources development: Skilled and experienced staff is the best asset of a business concern. The staffing function helps developing this asset for the business. It inculcates the corporate culture into the staff which in turn ensures smooth functioning of all the managerial aspects of the business.

4. Long Term effect: Staffing decisions have long term effect on the efficiency of an organization. Qualified, efficient and well motivated staff is an asset of the organization. Staffing function assumes special significance in the context of globalization which demands high degree of efficiency in maintaining competitiveness.

5. Potential contribution

Staff selection should be based on the ability of the prospective employees to meet the future challenges that the organization need to address. Therefore the potential contribution of the staff in their anticipated future roles should also be taken into account in staff selection.

What are the activities involved in staffing process? 6

Staffing process

The staffing process involves various activities such as manpower planning, recruitment, selection, training and placement of employees. The following are the major steps in the staffing process:

1. Manpower planning: This is the primary stage in the staffing process. The requirement of each area of business and the skill level required at each stage has to be carefully considered in planning the manpower requirement. The process of manpower planning involves two parts. First is the estimate of the quantitative requirement of staff for the organization. This is the estimation of the number of employees required. The second is the qualitative analysis. This is the assessment of qualifications and skill level requirement of the employees for performing the jobs. The volume of work involved and the capacity of the worker are to be assessed for determining the accurate requirement of each department.