CBSE Class 12 Business Studies - Staffing 


  • It is a managerial function filling and keeping filled the positions in the organisation structure. Staffing is identifying the requirement of the workforce followed by recruitment, selection, placement, promotion, appraisal and development of personnel, to fill the roles designed into the organisation structure.
  • Staffing is a continuous process because new jobs may be created and some of the existing employees may leave the organisation. It is a process which recognises the importance of every single person employed by an organisation as it is the individual worker, who is the ultimate performer.
  • In any organisation, there is a need for people to perform work. The staffing function management fulfils this requirement and finds the right people to find the right job. The staffing function has assumed greater importance these days because of rapid advancement of technology, increasing size of organisation and complicated behaviour of human beings . The ability of an organisation to achieve its goals depends upon quality of its human resources.


  1. Obtaining competent personnel-proper staffing helps in discovering and obtaining competent personnel for various jobs.
  2. Higher performance- proper staffing ensures higher performance by putting the right person the right job.
  3. Continuous survival and growth- proper staffing ensure continuous survival and growth of the enterprise through succession planning for managers.
  4. Optimum utilisation of human resources- staffing helps to e sure optimum utilisation of human resources. By avoiding over-staffing, it prevents underutilisation, of personnel and high labour costs.
  5. Improves job satisfaction and morale of employees- proper staffing improves job satisfaction and morale of employees through objective assessment and fair reward of their contribution.


Staffing is a function which all managers need to perform. It is a separate and specialised function and there are many aspects of human relations to be considered.,

Is it the responsibility of al managers to directly deal and select people to work for the organisation. When the manager performs the staffing function his role is slightly limited. In small organisation managers, may perform all duties related to employees salaries, welfare and working conditions.

But as an organisation grow and a number of person employe increases, a separate department called human resource department is formed which has specialists in the filed to manage the people. Human Resource management includes many specialised activities and duties which the human resource personnel must perform.

Human Resource management includes many specialised activities and duties which the human resource personnel must perform. These are-

  1. Recruitment I.e search for qualified people.
  2. Analysing jobs, collecting information about jobs, to prepare job descriptions.
  3. Developing compensation and incentive plans.
  4. Training and development of employees.
  5. Maintaining labour relations and union-management relations.
  6. Handling grievances and complaints.
  7. Providing for social security and welfare of employees.
  8. Defending the company in lawsuits and avoiding legal complications.

HRM is a broader concept and staffing is an inherent part of it. Staffing is referred to as both a line as well; as staff activity because of staffing ids both a function of management like planning, organising directing and controlling as well as distinct functional areas of the management.


It refers to the process of finding possible candidates for a job or function. It has been defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.

Process of recruitment:

The various activities involved in the process of recruitment include:

1. Identification of the different sources of labour supply.

2. Assessment of their validity.

3. Choosing the most suitable sources of recruitment.

4. Inviting applications from the prospective candidates for the vacancies.



Transfer - it involves shifting of an employee from one job to another Apartment to another from one sheet to another sheet doubt a substantive change in the responsibilities and status of the employees.

Promotions - promotion leads to shifting an employee to a higher position sharing higher responsibilities facilities and pay. promotion is a vertical shifting of employees.

Merits of Internal Sources:

- Employees are motivated to improve their performance.

- Simplify the process of selection and placement.

- The transfer is a tool of training the employees to prepare them for higher jobs.

- Shifting workforce from the surplus department where there is a shortage of staff.

- Cheaper as compared to getting candidates from external sources.

Limitation of Internal Sources:

- When vacancies are filled through internal promotions scope for induction of fresh talent        is reduced

- Employees may become lethargic if they are not sure of time-bound promotion.

- Enterprise cannot use internal sources of recruitment.

- Spirit of competition among the employees may be compelled.

- Frequent transfers of employees may often reduce the productivity of the organization.


  1. Direct Recruitment: the direct recruitment it is placed on the notice board of the enterprise specifying the details of the Jobs available. job seekers assemble outside the premises of the organization on the specified date and selection is done on the spot.
  2. Casual Callers: organizations keep a database of unsolicited applications in their offices. search job seekers can be a valuable source of Manpower. a list of such job seekers can be prepared and can be a screen to fill the vacancies as they arise.
  3. Advertisement: the advantage of advertising vacancies is that more information about the organization can be given in the advertisement. the advertisement gives the management of a wider range of candidates from which to choose. The disadvantage of advertisement is that it may bring in a flood of responses and many times from quite unsuitable candidates.
  4. Employment Exchange: employment exchange run by the government as a good source of recruitment and skilled unskilled operative jobs. disadvantages of it are that the data may be outdated and many of the candidates referred by them may not be found suitable.
  5. Placement Agencies and Management Consultants: these provide a nationwide service. these Agencies compile biodata of a large number of candidate and vitamins suitable names to their clients. search Agencies charge a fee for their services and they are very useful.
  6. Campus Recruitment: organizations maintain a close liaison with the universities schools and management institutes to recruit qualified personnel for various jobs.
  7. Recommendations of Employees: Applicants introduced by present employees or their friends and relatives proved to be a good source of recruitment. Such applicants are likely to be good employees because their background is sufficiently known.
  8. Labour Contractors: workers are recruited through labor contractor who is themselves employees of the organization. the disadvantages of this system are that if the contractor himself decides to leave the organization employed by him will follow the suit.
  9. Advertising on Television: generally advertised through television and newspapers the details requirement of the job and qualities required to do it as publicized along with the profile of the organization where vacancies exist.
  10. Web Publishing: there are certain websites like specifically designed and dedicated for the purpose of providing information about both job seekers and job opening.

Merits of External Sources:

- Qualified personal

- Wider choice

- Fresh talent

- Competitive Spirit

Limitations of External Sources

- Dissatisfaction among existing staff

- Lengthy process

- Costly process


Selection is the process of identifying and choosing the best person out of a number of prospective candidates for a job. towards this purpose the candidate are required to take a series of employment test and interviews.

Process of Selection:

1.Preliminary Screening: 

- It helps the manager eliminate unqualified or unpaid job seekers based on the information supplied in the application forms.

Selection test: unemployment test is a mechanism that attempts to measure certain characteristics of individuals these characteristics range from aptitude purchase manual dexterity to intelligence to personalities.

An important test used for selection of employees

  1. intelligence test
  2. aptitude test
  3. personality test
  4. trade test
  5. interest test

2.Employment Interview:

The role of the interviewer is to seek information and that of the interviewee is to provide the same. though, in present times the interviewee also seek information from interviewer.

3. Cancel Background Check:

Many employees required names, addresses, and telephone numbers of references for the purpose of verification information and any additional information on an applicant.

4.Selection Decision:

The Final Decision has to be made from among the candidates who passed the test, interviews and reference check.

5.Medical Examination:

After the selection decision and before the job offer is made, the candidates are required to undergo a medical fitness test.

6.Job Offer:

A job offer is made to a letter of appointment/ confirm his acceptance. search a letter generally contains a date by which be appointed must report on duty.

Basic information that should be included in a written contract of employment will marry according to the level of job, following checklist set out the typical heading: job title, duties, responsibilities, well continuous employment starts and the basis for calculating services, rate of pay, allowances, hours of work, Leave rules, sickness, grievance procedure, disciplinary procedure, work rules, termination of employment.


Training and Development is an attempt to improve the current or future employee performance by increasing an employee's ability to perform through learning usually by changing the employee's attitude or increased his or her skills and knowledge.

Importance of Training and Development:

The Rapid changes taking place during the last quarter-century in our highly sophisticated and complex society have created increased pressures for organizations to repeated the products and services produced in the manner in which products and services are produced and offered, the types of the job required and the types of skills necessary to complete these jobs.

Benefits to the Organisation:

-Efforts and money are minimized.

-Leading to higher profits.

-Increases employee morale and reduces absenteeism and employee turnover.

-It helps in obtaining an effective response to a fast changing environment.

Benefits to the Employees:

-Improve skills and knowledge

-Increased performance and help in earning more money.

-Training makes the employee more efficient.

-Training increases the satisfaction and morale of employees.


Training: training is any process by which the aptitude skills and abilities of employees to perform specific jobs are increased. it is a process of learning new skills and application of knowledge. in attempts to improve their performance on the current job or prepare them for any intended job.

Education: education is the process of increasing the knowledge and understanding of employees. it is the understanding and interpretation of knowledge. it does not provide definite answers, but rather develops a logical and rational mind that can determine relationships among pertinent variables and thereby understanding of phenomena.

Development: development refers to the learning opportunity designed to help employees grow. not only those activities which improve job performance which brings about the growth of the personality, help individuals in the progress towards maturity and actualization of their potential capacities so that they become more only Govt employees but better human beings.