Staffing Class 12 Notes Business Studies Chapter 6 - CBSE

Chapter: 6

What Are Staffing ?

Staffing is ‘putting people to jobs’. It starts with workforce planning and followed by recruitment, selection, training, development, promotion, and compensation and performance appraisal of work force.

Staffing Process

  • Estimating the Manpower Requirements
  • Recruitment
  • Selection
  • Placement and Orientation
  • Training and Development
  • Performance Appraisal
  • Promotion and Career Planning
  • Compensation

Importance of Staffing

  • Helps in discovering and obtaining competent personnel
  • Makes for higher performance
  • Ensures the continuous survival and growth of the enterprise
  • Optimum utilisation of the human resources.
  • Improves job satisfaction and morale of employees

Staffing As Part Of Human Resource Management

Managing the human component of an organization is the most important task because the success of an organisation depends on a competence, motivation and performance of its human resource to the great extent.


It is the process of finding possible candidates for a job or a function.

Sources of Recruitment

  • Internal Sources
  • External Sources

Internal Sources

In this source of recruitment, the job position is fulfilled by the candidate who is already working in an organisation. The sources of internal recruitment are: Transfers & Promotions


  • Employees are motivated
  • Simplifies the selection process
  • Transfer is a tool of training the employees
  • Transfer shifts the workforce from the surplus departments to those departments where there is shortage of staff
  • Cheaper Source
  • The scope for induction of fresh talent is reduced


  • The scope for induction of fresh talent is reduced
  • The employees may become lethargic
  • A new enterprise cannot use internal sources of recruitment
  • The spirit of competition among the employees may be hampered
  • Reduction in productivity due to frequent transfers

External Sources

When the job positions are being fulfilled from the persons who are from outside the company.

External Sources Of Recruitment

  • Direct Recruitment
  • Casual Callers
  • Advertisement
  • Employment Exchange
  • Placement Agencies and Management Consultants
  • Campus Recruitment
  • Recommendation of Employees
  • Labor Contractors
  • Advertising on Television
  • Web Publishing


  • Qualified Personnel
  • Wider Choice
  • Fresh Talent
  • Competitive Spirit


  • Dissatisfaction among existing staff
  • Lengthy process
  • Costly Affair


Selection is the process of identifying and choosing the best person out of a number of prospective candidates for a job.

Selection Procedure

  • Preliminary Screening
  • Selection Tests
  • Employment Interview
  • Reference and Background Check
  • Selection Decision
  • Medical Examination
  • Job offer
  • Contract of Employment

Important tests used for the selection of employees

  • Intelligence Test: It measures a candidate's ability to learn.
  • Aptitude Test: It measures the candidate’s ability to learn new skills.
  • Personality Test: It measures the overall personality of the candidate in terms of emotions, reactions, maturity, value systems etc.
  • Trade Test: It measures the candidate's existing level of knowledge and proficiency.
  • Interest Test: It identifies the candidate's areas of interest.

Training And Development

Training is the process of improving an employee's skills and competence required to perform a specific job. Development is the process of an employee's overall growth

Benefits of Training to the Organisation

  • Reduces the wastage of efforts and money
  • Improves employee productivity
  • Trains equips the future manager
  • Boosts employee morale
  • Adaptation of fast changing environment

Benefits of Training to the Employee

  • Improved skills and knowledge
  • Increased performance of employees.
  • Employees can handle machines efficiently
  • Improve the satisfaction and morale of employees

Training Methods


Those methods which are applied to the workplace.

Types of On-the-Job Method

  • Apprenticeship Programmes
  • Internship Training
  • Job Rotation


Those methods which are used away from the work place. For example : Vestibule Training, Classroom Lectures/Conferences, Films, Case Study, Computer Modelling, Programmed Instructions.