Unit 4

Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Staffing
- Unit 4
1
DEFINITION OF STAFFING
Staffing is filling, and keeping filled,

positions in the organization structure.

THE SYSTEMS APPROACH TO
AN OVERVIEW OF THE STAFFING FUNCTION

HUMAN RESOURCE MANAGEMENT
FACTORS AFFECTING THE NUMBER
AND KINDS OF MANAGERS REQUIRED
• Size of the organization

• Complexity of the organization structure

• Plans for expansion
• Turnover rate of managerial personnel
Qualifications for individual positions must be identified so

that the best-suited managers can be chosen.
MANAGER INVENTORY CHART

PERSONNEL ACTIONS BASED ON MANAGER

SUPPLY AND DEMAND WITHIN THE ENTERPRISE
SITUATIONAL FACTORS
AFFECTING STAFFING
External factors include:
• the level of education,

• the prevailing attitudes in
society (such as the attitude
toward work),
• the many laws and
regulations that directly
affect staffing,
• the economic conditions,
• and the supply of and
demand for managers
outside the enterprise.
SITUATIONAL FACTORS
AFFECTING STAFFING
Internal factors include:
• organizational goals,
• tasks,
• technology,
• organization structure,
• the kinds of people employed by the enterprise,
• the demand for and the supply of managers within
the enterprise,
• the reward system,
• and various kinds of policies
THE EXTERNAL ENVIRONMENT
• Equal Employment Opportunity

• Women in Management
• Diversity in the Workplace
• Staffing in the International Environment
WIPRO’S DEVELOPMENT CENTER
IN ATLANTA
• Wipro, chose Atlanta • The plan is to start
for its software small, but expand

development center. later.
• Around Atlanta are • The idea is to use

12 universities from local people who
which the center will know local business
draw local talents. needs.
THE INTERNAL ENVIRONMENT
• Promotion from within

• Promotion from Within in Large

Companies
• The Policy of Open Competition
• Responsibility for Staffing
MANAGING HUMAN RESOURCES
AT WAL-MART
• Wal-Mart is the largest • Walmart’s handbook
U.S. private employer. states: “The

Sam Walton is the undeniable
founder of the cornerstone of Wal-
company, Mart’s success can be
traced back to our
• He initiated a policy of strong belief in the
paying a time and a dignity of each
half for working on individual.”
Sundays.
DEFINITION OF MANAGERIAL
SELECTION
• Selection is the process of choosing from

among candidates, from within the
organization or from the outside, the most
suitable person for the current or future
positions.
SYSTEMS APPROACH TO SELECTION

WHAT DO YOU DO AFTER YOU
RETIRE OR GET FIRED?
• Companies such as Dow Chemical encourage
former employees to stay in contact with the firm.

• The idea is to develop an alumni social network
by using networks such as Twitter, LinkedIn, or
Facebook.
• This may benefit the company as well as the
employee.
• There is, however, a potential downside. A fired
or laid-off employee may use the social network
for venting grievances against the company.
POSITION REQUIREMENTS AND
JOB DESIGN
• Selecting a manager effectively requires a clear
understanding of the nature and purpose of the position
that is to be filled.
• An objective analysis of position requirements must be
made, and the job must be designed to meet organizational
and individual needs.
• Positions must be evaluated and compared so that the
incumbents can be treated equitably.
• Among other factors to consider are the skills required—
technical, human, conceptual, and design—since these vary
with the level in the organizational hierarchy and the
personal characteristics desired in managers.
IDENTIFYING
JOB REQUIREMENTS
• Appropriate Scope of the Job

• Meeting Managerial Skills Required by
Job Design
JOB DESIGN
• Design of Jobs for Individuals and
Work Teams
• Factors Influencing Job Design

SKILLS AND PERSONAL CHARACTERISTICS
NEEDED IN MANAGERS
• Analytical and Problem-solving Abilities

• Personal Characteristics Needed in

Managers
• Desire to Manage
• Communication Skills and Empathy
• Integrity and Honesty
• Past Performance as Manager
INTRAGROUP AND INTERGROUP
COMMUNICATION
• Intragroup • Intergroup
communication is communication is
communication communication
with people in the not only with other
same departments but
organizational also with groups
unit. outside the
enterprise.
RECRUITING
in the organization structure.

Attracting candidates to fill positions
WHERE DO CHINESE
COMPANIES RECRUIT?
• As Chinese companies become more
globally oriented, many now hire Western

managers.
• A number of Chinese companies are also
hiring Chinese executives with Western
experience who have the advantage of
being familiar with the Chinese
environment.
SELECTION, PLACEMENT, AND
PROMOTION
• In the selection approach, applicants are sought
to fill a position with rather specific

requirements.
• In the placement approach, the strengths and
weaknesses of the individual are evaluated, and a
suitable position is found or even designed.
• Promotion is a move within the organization to
a higher position that has greater responsibilities
and requires more advanced skills.
THE PETER PRINCIPLE
• Managers tend to be promoted to the level

of their incompetence.
• Specifically, if a manager succeeds in a
position, this very success may lead to a
promotion to a higher position, often one
requiring skills that the person does not
possess.
THE SELECTION PROCESS
• The selection criteria are established

• A screening interview is followed

• Formal interviews are conducted
• A candidate is selected or rejected
INTERVIEWS
Several techniques can be used to improve the
interviewing process:
• Interviewers should be trained so that they know what
to look for.
• Interviewers should be prepared to ask the right
questions.
– Structured interviews
– Semi structured
– Unstructured interviews.
• Multiple interviews should be conducted utilizing
different interviewers.
• Interviews must be supplemented by different other
sources.
COMMONLY-USED TESTS ON
MANAGERIAL CANDIDATES
• Intelligence tests
• Proficiency and aptitude tests
• Vocational tests
• Personality tests
WHAT IS AN
ASSESSMENT CENTER?
The assessment center is a technique for

selecting and promoting managers.
THE SELECTION PROCESS
LIMITATIONS
• Selection techniques and instruments are not

a sure way to predict what people will do,

even though they may have the ability to do
it.
• Testing itself, especially psychological testing,
has limitations.
• Other concerns in selection and hiring are
the time and costs involved.
HRM IN INDIA
AND OTHER COUNTRIES
• Developments in outsourcing and information
technology have important implications on

staffing and leading.
• Training and performance evaluation may
have to be adapted to the local environment.
• Compensation, motivation, local needs, and
requirements, as well as expectations differ
among countries.
• Companies need to adapt to the local situation.
ORIENTATION OF NEW EMPLOYEES
Orientation involves the introduction of

new employees to the enterprise—its

functions, tasks, and people.
ORGANIZATIONAL SOCIALIZATION
A global view includes three aspects:

• Acquisition of work skills and abilities

• Adoption of appropriate role behaviors
• Adjustment to the norms and values of
the work group
MANAGING HUMAN RESOURCES
WHILE MOVING TOWARD 2020
• The Economist Intelligence Unit Survey
– Managing knowledge
– Providing services & support for customers
– Improving operation & production processes
– Developing businesses & strategies
– Managing marketing & sales
– Managing human resources & training
– Other areas
• The contribution of the knowledge workers
critical for gaining a competitive advantage
MANAGER DEVELOPMENT PROCESS AND TRAINING

ANALYSIS OF TRAINING NEEDS

MANAGING CHANGE
• The forces for change may come from
the environment external to the firm,

from within the organization, or from
the individuals themselves.
CHANGES THAT AFFECT MANAGER AND
ORGANIZATION DEVELOPMENT
• The increasing use of computers.

• Education extends into the adult life.
• The proportion of knowledge workers will

increase and the need for skill workers will
decrease.
• The shift from manufacturing to service

industries requires retraining in preparation
for new positions.
CHANGES THAT AFFECT MANAGER AND
ORGANIZATION DEVELOPMENT
• The choice of educational opportunities will

expand.
• There may be greater cooperation and

interdependence between the private and the
public sector, at least in some countries.
• Companies need to train with a global

perspective.
INITIATING CHANGE
• The field force theory suggests that an

equilibrium is maintained by driving forces

and restraining forces.
• The change process involves three steps:
1. Unfreezing
2. Moving or changing
3. Refreezing
MOVING AN ORGANIZATIONAL EQUILIBRIUM

RESISTANCE TO CHANGE
• What is not known causes fear and induces

resistance.
• Not knowing the reason for the change also
causes resistance.
• Change may also result in a reduction of
benefits or a loss of power.
CHOOSING APPRAISAL CRITERIA
• Appraising against verifiable preselected

goals has extraordinary value.

• The system of measuring performance
against preestablished objectives should
be supplemented by an appraisal of a
manager as a manager.
APPRAISING MANAGERS AGAINST
VERIFIABLE OBJECTIVES
• A network of meaningful and attainable

objectives is basic to effective managing.

• Management by objectives must be a way
of managing, a way of planning, as well as
the key to organizing, staffing, leading,
and controlling.
THE APPRAISAL PROCESS

SUBJECTIVE VS.
OBJECTIVE EVALUATION
Appraisal should focus on results. But one

must be careful to avoid the “numbers

game”.
JUDGING VS.
SELF-APPRAISAL
The MBO philosophy places emphasis on

self-control and self-direction.
ASSESSING PAST PERFORMANCE
VERSUS FUTURE DEVELOPMENT
One should learn from past mistakes, and

translate these insights into development
plans for the future.
THREE KINDS OF REVIEWS
• Formal comprehensive review

• Progress or periodic reviews

• Continuous monitoring
STRENGTHS OF APPRAISAL
AGAINST VERIFIABLE OBJECTIVES
• Appraising on the basis of performance

against verifiable objectives has the great
advantage of being operational.
• It furnishes strong presumptions of
objectivity and reduces the element of pure
judgment in appraisal.
WEAKNESSES OF APPRAISAL
AGAINST VERIFIABLE OBJECTIVES
• It only appraises operating performance

but not individual’s managerial abilities.
• It is entirely possible for persons to meet
or miss goals through no effort or fault of
their own.
HOW ABOUT A TWITTER
PERFORMANCE EVALUATION
• Accenture has developed a Facebook-type

program “Performance Multiplier.” People post

two- or three weekly goals, project status
updates, and even include photos.
• Another program, called “Ripple” lets people

post up to 140 words questions requesting
anonymous feedback.
APPRAISING MANAGERS AS
MANAGERS
The most appropriate standards to use for

appraising managers as managers are the
fundamentals of management.
ADVANTAGES OF THE PROGRAM
• Gives operational meaning to what management
really is.
• Removes many of the semantic and communication

difficulties so commonly encountered.
• Has proved to be a tool for management development.
• Has been found useful in pinpointing areas in which
weaknesses exist and to which development should be
directed.
• Acts as a supplement to, and a check on, appraisal of
managers’ effectiveness in setting and achieving goals.
WEAKNESSES OF THE PROGRAM
• It applies only to managerial aspects of a given

position and not to technical qualifications.
• Perhaps the major shortcoming in appraising

managers as managers is the subjectivity
involved.
A TEAM
EVALUATION APPROACH
• Selection of job-related criteria
• Development of examples of observable behavior

• Selection of four to eight raters
• Preparation of the rating forms applicable to the
job
• Completion of the forms by the raters
• Integration of the various ratings
• Analysis of the results and preparation of the
report
APPLICATION OF PERFORMANCE
REVIEW SOFTWARE
• The paper-based evaluation may be
replaced or complemented with web-based

appraisal.
• A manager may complete electronically the
evaluation form that can be reviewed by
other managers who can provide additional
inputs and by the employee himself or
herself before it is submitted to the human
resource department.
APPLICATION OF PERFORMANCE
REVIEW SOFTWARE
• The data base can then be used for
identifying training needs, management

development, and for identifying those
individuals who are ready for promotions to
a position within the total organization.
• Managers who do not submit the
evaluations of their employees in time, can
be reminded automatically through the
software program.
PAY FOR PERFORMANCE
• At General Electric (GE), workers get paid

for performance: they are paid bonuses

when they achieve challenging goals
instead of according to a person’s title or
the length of service.
• The reward should be timely.
PAY FOR PERFORMANCE
• Cultural differences should be taken into

account when using variable

compensation.
• While pay-for-performance is generally
accepted in companies, the concept may be
more difficult to apply in certain fields
such as medical care.

Unit 4

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Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

Staffing is filling, and keeping filled,

positions in the organization structure.

THE SYSTEMS APPROACH TO

AN OVERVIEW OF THE STAFFING FUNCTION

• Size of the organization

• Complexity of the organization structure

Qualifications for individual positions must be identified so

MANAGER INVENTORY CHART

PERSONNEL ACTIONS BASED ON MANAGER

• the level of education,

• Equal Employment Opportunity

for its software small, but expand

• Around Atlanta are • The idea is to use

• Promotion from within

• Promotion from Within in Large

U.S. private employer. states: “The

• Selection is the process of choosing from

SYSTEMS APPROACH TO SELECTION

former employees to stay in contact with the firm.

• Appropriate Scope of the Job

• Factors Influencing Job Design

• Analytical and Problem-solving Abilities

• Personal Characteristics Needed in

in the organization structure.

globally oriented, many now hire Western

to fill a position with rather specific

• Managers tend to be promoted to the level

• The selection criteria are established

• A screening interview is followed

The assessment center is a technique for

• Selection techniques and instruments are not

a sure way to predict what people will do,

technology have important implications on

Orientation involves the introduction of

new employees to the enterprise—its

A global view includes three aspects:

• Acquisition of work skills and abilities

MANAGER DEVELOPMENT PROCESS AND TRAINING

ANALYSIS OF TRAINING NEEDS

the environment external to the firm,

• The increasing use of computers.

• Education extends into the adult life.

• The proportion of knowledge workers will

• The shift from manufacturing to service

• The choice of educational opportunities will

• There may be greater cooperation and

• Companies need to train with a global

• The field force theory suggests that an

equilibrium is maintained by driving forces

MOVING AN ORGANIZATIONAL EQUILIBRIUM

• What is not known causes fear and induces

• Appraising against verifiable preselected

goals has extraordinary value.

• A network of meaningful and attainable

objectives is basic to effective managing.

THE APPRAISAL PROCESS

Appraisal should focus on results. But one

must be careful to avoid the “numbers

The MBO philosophy places emphasis on

One should learn from past mistakes, and

• Formal comprehensive review

• Progress or periodic reviews