Everything you need to know about the process of staffing. An enterprise without the human resource cannot perform any functional activity. Every activity of an organization is centred on the employees of an organisation.

Staffing is concerned with procurement of people and placement and managing them to achieve the goals of an enterprise. Staffing is a continuous process of repetitive nature. Many employees may leave the organisation and may join other and vice versa.

The staffing process is a systematic attempt to implement die human resource plan by recruiting, evaluating and selecting qualified candidates for the job-positions in the organization. Thus, like planning and organization, staffing is also an important function of management.

The steps involved in the process of staffing are as follows:-


1. Manpower Planning 2. Employment of Personnel 3. Recruitment 4. Selection 5. Placement 6. Training 7. Training

8. Development 9. Promotion and Career Planning  10. Transfer 11. Performance Appraisal 12. Compensation 13. Determination of Remuneration.

Staffing Process: 7 Important Step in the Staffing Process

Staffing Process – 7 Step Involved in the Process of Staffing: Manpower Planning, Employment of Personnel, Placement, Induction, Training and a Few Others

In the process of organising, a manager establishes positions and decides which duties and responsibilities to be entrusted to different individuals. In staffing, he attempts to place the right person for the right job.

According to Koontz and O’Donnell, staffing involves manning the organisational structure through proper and effective selection, appraisal and development of personnel to assign the roles so designed.


An enterprise without the human resource cannot perform any functional activity. Every activity of an organization is centred on the employees of an organisation. Staffing is concerned with procurement of people and placement and managing them to achieve the goals of an enterprise.

Staffing is a continuous process of repetitive nature. Many employees may leave the organisation and may join other and vice versa.

Employee’s turnover process is affected due to various reasons like voluntary retirement, discharge, dismissal, transfer, retrenchment, etc. This ratio of employee’s turnover has to be constantly monitored by the management to have a clear picture of incoming and outgoing employees. This would enable the management to maintain an optimum level of staffing at all times.

Efficient staffing involves the following activities or steps:


1. Manpower Planning – This is the first step in the process of staffing. It is concerned with determining the number and types of staff required for the organisation.

2. Employment of Personnel – It involves recruitment and selection of personnel as needed in the organisation. Recruitment refers to identification of the sources of manpower availability and making of efforts to secure applicants for the various job positions in the organisation.

Selection is the process of choosing and appointing the right candidates for various jobs in the organisation. It includes receiving and screening of applications, employment tests, interview and medical examination of candidates.

3. Placement – When a new employee reports for duty, he is to be placed on the job for which he is best suited. Placement is a very important process as it can ensure ‘right person doing the right job’. If a new employee is not able to adjust on his job, he may be given some training or transferred to some other job.

4. Induction – Induction is concerned with the process of introducing or orienting a new employee to the organisation. The new employees are familiarised with their units, supervisors and fellow employees. They are also to be informed about the working hours, tea or coffee breaks, lunch period, procedure for availing leaves, safety precautions, medical facilities, transport facilities, etc.

5. Training – Systematic training helps in increasing the skills and knowledge of employees in doing their job. Various methods of training can be used to enhance the knowledge and skills of the employees. On-the-job methods are more useful for the operative employees and off-the-job methods can also be employed for the supervisory personnel.

6. Compensation – Remuneration of workers involves fixation of their wages and salaries depending upon their level, nature of work, degree of risk involved, etc.

7. Performance Appraisal – It is concerned with the rating or evaluation of the performance of the employees. Transfer and promotion of the staff are based on performance appraisal.

Staffing Process

The managerial function of staffing is defined as filling, and keeping filled, positions in the organisation structure. This is done by identifying the work-force requirements, inventorying the people available, and recruiting, selecting, placing, promoting, appraising, planning the careers of, compensating, and training or otherwise developing both candidates and current jobholders so that they can accomplish their tasks effectively and efficiently.


In a new enterprise, the staffing function follows the planning and organising function. In the case of running an enterprise, staffing is continuous process. So, the manager should perform this function at all times. The staffing function includes recruitment, selection, training, development, transfer, promotion and compensation of personnel.

It is obvious that the management must ensure a constant availability of sufficient number of efficient executives in an enterprise for the efficient functioning of the enterprise. The selected personnel should be physically, mentally and temperamentally fit for the job.

According to Koontz and O’Donnell, “The managerial function of staffing involves managing the organisation structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure.”

The staffing of personnel involves the following processes.


They are briefly discussed below:

1. Planning:

The term planning of staff members includes estimation of the number of staff members required to the company in various grades. It is based upon the size of the company and the policy followed by the company.

2. Recruitment and Selection:

It deals with the selection of qualified applicants to fill the jobs in the organisation. A standard procedure may be followed while selecting the staff members. The procedure may be valid for different types of personnel.

3. Training and Developments:

It is concerned with providing training to new staff members as well as the existing staff members. The working efficiency of the staff members may be developed through the training programmes.

4. Performance Operation:


It deals with assessment of the work performed by the staff members in an organisation. A standard may be fixed in order to evaluate the efficiency of the staff members.

Staffing Process – Top 10 Stages: Manpower Planning, Recruitment, Selection, Placement, Training, Development, Promotion, Transfer, Appraisal and Remuneration

Once the goals are laid down and a suitable organization structure is developed, the next function in the process of management is staffing. Though the term ‘human resource management’ is frequently used for the managerial function of staffing- staffing is just a part of the HRM process and plays an important role. This involves die set of activities aimed at attracting and selecting individuals for suitable positions in a way that will enable the organization to achieve its goals.

The staffing process is a systematic attempt to implement die human resource plan by recruiting, evaluating and selecting qualified candidates for the job-positions in the organization. Thus, like planning and organization, staffing is also an important function of management.

The process of staffing consists of the following stages:

Process # 1. Manpower Planning:

It may be regarded as the quantitative and qualitative measurement of labour force required in an organization. It is concerned with creating and evaluating the manpower inventory and to develop required talents among the employees selected for promotion advancement.

Process # 2. Recruitment:

It is a positive process of searching for prospective employees and stimulating them to apply for the jobs in the organization. The scientific recruitment leads to greater productivity, better wages, higher morale, reduction in labour turnover and better reputation on the concern.

Process # 3. Selection:


It is the process of eliminating those who appear unpromising. The purpose of this process is to determine whether a candidate is suitable for employment in the organization or not. The main aim of this process is to choose right candidate for the right position in the organization.

Process # 4. Placement:

It means putting the person on the job for which he is selected. It includes the introduction of the employee to the job.

Process # 5. Training:

Aker selection of an employee, the most important function of the personnel programme is to impart training to the new comer. With the rapid technological changes, the need for training employees is being increasingly recognized so as to keep the employees in touch with the new developments. Thus, every concern must have a systematic training programme.

Process # 6. Development:

A sound staffing policy calls for the introduction of a system of planned promotion in every organization. If employees are not having suitable opportunities for their development and promotion, they get frustrated.

Process # 7. Promotion:

It implies upgrading of an employee to a higher post involving increase in rank, prestige or status and responsibilities. Generally increase in pay accompanies promotion but it is not essential ingredient and there can be a dry promotion also.

Process # 8. Transfer:

It implies movement of an employee from one job to another without any increase in pay, status or responsibilities. Usually transfer takes place between the jobs having approxi­mately the same salaries.

Process # 9. Appraisal:


It reveals as to how efficiently a sub-ordinate is performing his job and also to know his aptitude and other qualities necessary for performing the job assigned to him. The main aim of this performance appraisal is to improve the efficiency of a concern by mobilizing the best efforts from individuals employed in it.

Process # 10. Determination of Remuneration:

Fixation of remuneration is a difficult and complex because there are no definite or exact means to determine the correct wages, job evaluation is the only systematic technique to determine the worth of the job.

Staffing Process – Top 7 Steps: Manpower Requirements, Recruitment, Selection, Placement and Orientation, Training and Development and a Few Others

Staffing is the process of determining the manpower requirements of a company which are necessary to achieve its objectives. This includes appraising and selecting candidates to fill these requirements and orienting, training and developing new and existing staff.

It includes the following functions:

(i) Estimating the requirements of manpower.

(ii) Identifying, and selecting the sources of recruitment.


(iii) Selection, placement and training of employees.

(iv) Evaluation, compensation, integration and maintenance of personnel.

The staffing process of the management is concerned with acquiring, developing, employing, remunerating and retaining people. In short, we can say that it is the timely fulfillment of the manpower requirements within an organisation.

The following steps are involved in staffing process:

(i) Estimating the manpower requirements – The first and foremost step in the process of staffing is estimating the manpower requirements. Understanding manpower requirements is not merely a matter of knowing how many people we need but also of what type. Estimation of manpower requirements involves workload analysis and workforce analysis.

(ii) Recruitment – Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.


(iii) Selection – Selection is the process of choosing from among the pool of the prospective job candidates that is developed at the stage of recruitment.

(iv) Placement and Orientation – Placement refers to the employee occupying the position or post for which the person has been selected. Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.

(v) Training and Development- Training and development of employees is very important in order to improve their skills and to give them an opportunity for their career advancement.

(vi) Performance Appraisal – It refers to rating or evaluating the current performance of employees according to certain predetermined standards. Transfers and promotions of the staff are based on performance appraisal.

(vii) Promotion and Career Planning – It is necessary for every organisation to keep promotion and career plans of an employee into consideration so as to ensure job satisfaction.

(viii) Compensation – Organisations pay wages and salaries to their employees for which they need to establish wages and salary plans. There are various ways to prepare different pay plans depending upon the worth of the jobs.

Staffing Process – Staffing Procedure for Managers – Managerial Recruitment Selection & Induction, Manager Performance Appraisal, Management Inventory & Development

The various steps involved in the procedure of staffing managers in an organisations are as follows:

1. Managerial Recruitment Selection and Induction:

i. Recruitment:

The major sources- sources most frequently used are:

i. Internal people (promotion from within on merits),

ii. Direct applications from deserving candidates,

iii. Recommen­dations from relatives and friends,

iv. Educational institutions,

v. University Employment Bureau,

vi. Defence Services,

vii. Other companies,

viii. Employee recommendations,

ix. Manage­ment professors, Management consultants,

x. Employment exchanges, and

xi. Government institutions.

ii. Scientific Selection Process:

The scientific selection process covers four main elements:

(1) Employment policy statement at all levels of management,

(2) Selection procedure,

(3) Induction and

(4) Follow up.

(1) Employment Policy:

There should be centralised hiring policy. The policy should provide equal opportunities of ad­vancement to internal people. Promotion from within for higher offices should be prevalent. There should be a well-defined policy to inject fresh young talented persons through trainee schemes, graduate engineers scheme, probationary officer’s scheme, etc.

We should have a recruitment policy of 75 per cent from within and 25 per cent from without. Recruit­ment of high-caliber managers should be on an all-India basis preferably through press publicity. There should be a special selection committee including top executives, personnel man­ager, department head, psychologist and a few other experts. The policy must ensure hiring of the most suitable talent.

(2) Selection Procedure:

A sound selection procedure would cover:

i. Preliminary interview,

ii. Application forms,

iii. References,

iv. Interviews,

v. Tests,

vi. Medical check-up,

vii. Selection and placement,

viii. Induction, and

ix. Follow-up.

In selection, interviewing is the most universally used tool and interviews may be informal and oral or they may be highly planned and carefully conducted.

An interview rating is the seven point plan providing a framework for listing and examin­ing important aspects of personality under seven main headings:

i. Physical make-up,

ii. Attainment,

iii. Intellig­ence,

iv. Special aptitudes,

v. Interests,

vi. Disposition, and

vii. Circumstances i.e. domestic and social background and experience.


Psychological selection tests such as aptitudes, atti­tude, personality, interest, character, achievement and various tailor-made tests are used in selection procedure. We have triple screening of applicants.

i. Application form,

ii. Interview, and

iii. Employment tests.

(3) Induction:

A new manager must be provided opera­tional knowledge that is specific to the position and location. The immediate boss is responsible for training and induction. Certain items are unique to your own position and location.

You must know:

i. The people who work for you,

ii. The work you are responsible for,

iii. The results you accomplish,

iv. The current status of the work,

v. Your relationships in the organisation,

vi. Reports and records you must understand and maintain,

vii. Operating policies, procedures and rules, and

viii. Service group available to help you.

The primary responsibility for orientation of a new man­ager is with the immediate boss of the new entrant. He is the source of relevant induction information. Induction training may be spread over a month, if necessary. Manager’s manuals also provide fund of practical information during the orienta­tion.

(4) Follow-Up:

Follow-up is the last step in selection pro­cedure. It enables us to see whether the right man has been placed on the right position or there has been a mistake. If the new executive faces any problem, he must be helped. If he is functioning well, we have the pleasure of having placed the right man on the right job at the right time.

Selection Policy:

The selection policy for managers at higher levels stresses certain special aspects:

i. Higher vacancies are filled in through internal promotion as far as possible.

ii. Highly speci­alised personnel may be recruited from the open market, when promotion from within is not possible.

iii. Trainee schemes are used for recruitment of highly talented young graduates and the trained managers are groomed for higher responsibilities over a period of time.

iv. Highly talented graduates with good managerial potential are recruited initially at the lower level and quick promotions are given to secure their optimum use.

The chief objective is to bring in fresh blood through recruit­ment of bright young graduates and to provide a career oppor­tunity to the young deserving employees and not just to fill a job. Fresh blood can be injected through several trainee schemes.

2. Manager Performance Appraisal:

Manager appraisal is important to management develop­ment because it reveals strengths and weaknesses of a manager and a development plan (tailor-made) can be prepared for each manager. Development of a manager based on appraisal of his performance leads to improved job performance. The appraised manager can qualify himself for higher responsibilities, more rewarding assignment and promotion.

Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. The immediate superior is in charge of such performance appraisal. Thus, each manager is apprais­ed in turn by his superior in the management hierarchy.

The managerial appraisal should measure both performance in achieving goals and plans as well as performance as a manager in all managerial functions such as planning, organising, lead­ing and controlling. The appraisal programme should be direct­ed toward the actual performance of a manager on his present job as well as the potential for promotion to a higher-level position.

Individual plan for development is based primarily on the managerial potential revealed by appraisal reports. Ap­praisal of managerial ability on performance against predeter­mined verifiable objectives is a big step in the right direction.

Management development programme should be tied into management by objectives with particular emphasis on learn­ing, knowledge and skill. Under management by objectives, subordinates and superiors jointly set goals and periodically evaluate the subordinate’s performance with regard to those goals. MBO helps in the development of managers.

I. Counselling:

Counselling follows performance appraisal of a manager. It covers two aspects. The boss tells his subordinate where he stands. He adopts the method of ‘tell and sell’, i.e., criticism and persuasion, both are employed in counselling.

The boss should also discuss future development by encourag­ing his subordinate to appraise himself. Here, give-and-take problem solving approach will be used throughout the coun­selling meeting. The aim of counselling is not just to tell the subordinate what he has done wrong. Instead, the boss should reveal the root cause of the problem and secure constructive change.

The boss should avoid making his subordinate defen­sive, avoid criticizing him, and emphasize clearly the goals of development. The boss should avoid open criticism, offer objective and constructive criticism. Appraisal studies include counselling and coaching.

Counselling and coaching should be often preferably on a day-to-day basis, rather than just once or twice a year. Coaching, or face-to-face counselling is the best, follow-up training technique. Many Management development programmes emphasize counselling and coaching as important aspects of the development programme.

II. New Approach to Performance Appraisal (MBO):

Management by objectives or results was introduced by P. Drucker in 1954. Drucker in The Practice of Management used this term and recognised the need of self-set goals. Since then it has become very popular as a method of planning, setting standards, motivating and appraising performance of employees.

The concept of MBO incorporates the better parts of the different theories of motivation. It recognises Maslow’s Self- fulfilment need. It is based on McGregor’s Theory Y. It also honours Herzberg’s motivational factors of achievement, re­cognition, challenging work and responsibility. It also accepts the concept that people prefer to be assessed according to criteria or standards which they feel as realistic and reasonable.


Management by objectives is an Organisation Development approach.

It rests on the four basic elements:

(1) Setting of measurable, concrete performance elements,

(2) Subordinate participating in goal setting,

(3) Periodic performance review sessions to discuss goal accomplishments, and

(4) Organisa­tional commitment to the programme.

MBO is a method of two-way communication between a manager and an employee aimed at establishing mutually de­sirable and acceptable performance goals. Both jointly define major areas of responsibility, identify common goals, and establish plans so that understanding and acceptance will form a basis for future activities.

Key Features of MBO:

(1) Superior-Subordinate Interaction:

The superior and the subordinate (the management pair) get together and jointly agree upon and prepare the list of duties and areas of respon­sibility of the individual’s job.

(2) Superior and Subordinate Mutually Set Goals:

The sub­ordinate sets his own short-term goals or targets in consulta­tion with his boss who guides him in the process of goal-setting. The goals set are measurable, important, challenging, but rea­listic and reasonable and they satisfy also the needs of the organisation.

(3) Superior and Subordinate Mutualy Set Performance Criteria:

The superior and his subordinate ascertain the me­thods to be used in achieving the objectives as well as receiving any training needed. They agree upon standards or norms for measuring and evaluating performance.

(4) Progress Evaluation:

From time to time, usually three or four times a year, they get together to evaluate progress to­ward the predetermined goals. At these face-to-face meetings- new or modified goals are set for the next period.

(5) Superior’s Supportive Role:

The superior plays a sup­portive role. He helps subordinate constantly in achieving the pre-set objectives. He acts as a coach and offers valuable ad­vice and guidance.

(6) Focus of MBO:

The process of MBO emphasizes the result and not the means or personal traits. The superior does not act as a judge to pass his verdict on the performance of his subordinate. In fact, the superior helps through continuous guidance the subordinate to reach his goals.

It is concerned with assessing performance and not with evaluating or rating qua­lities and potentials of the subordinate staff. It is interested only in work-related and career-oriented goals. Primary em­phasis is on self-supervision and self-regulation by the subor­dinates with frequent feedback of information for effective control and communication.

The modern human resource manager usually prefers MBO as it provides ample scope for employee participation in goal setting and in planning and organising the work through mutual inter-action between the superior and his subordinates.

MBO is a good solution to the problem of motivation. It permits greater or lesser supervision as per needs of the subordinates. Greater freedom and challenge are possible over time. This will de­pend on the employee’s performance, willingness to take more responsibility and the job potential for enlargement.

Personnel Development Programme:

A successful appraisal interview will provide time for a joint determination by the subordinate and his superior of just what steps the subordinate so appraised should take to capi­talise on his strengths and overcome his weaknesses. The joint aspect of this determination needs special emphasis. In the final analysis, only the subordinate himself can bring about the desired changes in his job behaviour, skills and attitudes.

Benefits of MBO:

i. Efforts directed toward right objec­tives;

ii. Data to reward managers objectively;

iii. Pinpointing human development needs;

iv. Can identify promotable mana­gers;

v. Can co-ordinate organisation’s efforts;

vi. Increases the organisation’s ability to change;

vii. Improves the potential for achieving key area objectives, e.g.. R.O.I., market share, etc.

viii. Offers rising job satisfaction;

ix. Best motivator;

x. Faci­litates coaching, counselling and management development;

xi. Best form of democratic management.

3. Management Inventory:

Management development programme prepares an intelli­gent forecast of future managerial needs on the basis of long- range comprehensive business plans. In fact, business planning and personnel planning should go hand in hand.

Business plans should guide MDP, and then only we can execute effectively our plans with right quantity and quality of managers. First we have the present managerial resources inventory and then we prepare the managerial resources forecasting for the next five or ten years.

Inventory of present managerial staff personnel will give us information about the number of engineers, accountants, business graduates, specialised staff personnel and line personnel that the company has in its employment. For each manager a card is prepared giving such data as name, age, length of service, education, work experience, training courses completed, health record, performance appraisal data, etc.

Managerial resources forecasting is prepared every year for the next five years just like cash forecast. It evaluates in terms of managers the needs of our business which will rise out of expansion, new projects, new products, and organisational changes under our business plans.

This need for future mana­gerial resources is then equated with our internal managerial resources- what will be generated by way of promotions from the management, the losses that are likely to occur through retirements and losses through anticipated and unexpected se­parations. The exercise throws up our real requirements, which in a growing country and an expanding business under com­prehensive business planning must happily be always on the plus side.

The management review or forecast is brought up to date every year, but it may sometimes need ad hoc study. Its preparation and follow-up, like the cash flow, keep our ma­nagement resources under constant study. Periodically once in three months a statement of the total strength of the company’s management is prepared showing staff in each category, retire­ments, promotions and recruitments, and this statement is examined by each department, its manager and Anally by the chief executive and the Board.

Forecasting of managerial needs involves estimating addi­tional employment of managers over a given period and adjust­ing it against the internal managerial inventory.

4. Management Development:

Since 1945, Management or Executive Development has been the most prominent area of personnel or human resources ma­nagement. It is also called management revolution.

Management development is a systematic process of ma­nagement training and growth by which individuals (aspiring to rise on the ladder of management) gain and apply knowledge skills, insights, and attitudes to manage managers, workers and work organisations effectively.

Management development, therefore, means any planned, guided or directed activity under­taken by a manager to help himself become more competent in his present office and or to consciously prepare himself for assuming higher and more important managerial duties and responsibilities so that he can claim promotion by merit or competence.

There are two ways to develop as managers:

i. Active and intelligent participation in the formal courses of instructions and management training programmes.

ii. Learn­ing the techniques of management through actual job experi­ences in a work environment itself.

A company should provide the training programme and opportunities for development to its present as well as potential managers and offer ample scope for talents to come forward. But it should be clearly noted that training programmes such as case studies, lectures, role playing, readings, job rotation and so on cannot automatically guarantee the accelerated output of managers.

Please note that no man can develop another. More important and vital coun­terpart of planned training programme is the individual efforts of the person himself. In the final analysis, self-development is an important component of any management development pro­gramme. The urge for advancement and development must come from within the individual and a manager has to deve­lop himself.

In other words, self-motivation is the pivot of ma­nagement development programme. Top management must create an environment in which self-development is encouraged and facilitated.

Management development programme must be based on three principles:

i. All development is self-develop­ment,

ii. Development programme should recognise individual differences, and

iii. Development programme is a long-range process and a manager cannot be produced overnight.

For effective management development programme:

i. Top managers must give active support.

ii. Top managers must be trained first.

iii. Training activities should be tailor- made to the individual managers at all levels.

iv. Development programmes must provide actual practice in applying manage­ment knowledge and actual use of management skills on the job.

Otherwise, a man might learn all about managing without ever learning really to manage. Hence, theory and practice must go hand-in-hand.

With proper organisation planning and programme we can develop favourable organisational climate and the organisation can attract and retain, develop and train or retrain the manage­rial personnel and utilise managerial talents to meet the present and future needs of the organisation as well as the needs of individual managers.