Chapter 6 Staffing class 12th Commerce

Sn

Heads

Details

1

Naryan murti statement

“Our assets walk out of the door each evening. We have to make sure that they come back the next morning” (as stated by Narayana Murthy former, CEO of INFOSYS).

2

Human resources in the balance sheet as an asset

At a time when organisations are debating the strategic importance of their human resources, Infosys, a consulting and software services organisation, includes its human resources on its balance sheet to affirm their asset value. The rationale for this is as follows

3

Human resources are among these new non- financial parameters

“The long term success of a company is usually examined on certain financial and non-financial parameters. Human resources are among these new non- financial parameters that challenge the usefulness of evaluating corporate success solely on traditional measures. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organisation.”

4

Retention of employee

As a knowledge intensive company, Infosys recognises the value of its human assets in maintaining its competitive position. It realises that these assets can easily walk away, as competitors in India and abroad covet its IT talent. Consequently, the challenge facing Infosys is how to attract, retain and develop its human assets in a highly competitive and dynamic environment?

5

Sharing wealth with employee

Most of the current human resource practices at Infosys result from the vision of the leaders and the culture that they have created. Narayana Murthy, known for his leadership and vision is the public image of Infosys. His leadership style is humble and straight-forward, quite uncommon in the world of Indian business. He believes in sharing wealth with his employees and in leading by example.

6

Creating strong culture

In a knowledge-based business like Infosys, he sees the importance of consistency in rhetoric and action in empowering employees. He is credited with creating a culture of closeness and empowerment at Infosys. His management style, rare among Indian business leaders, is based on western management

1

Right competent personnel

Helps in discovering and obtaining competent personnel for various jobs;

2

Right person on the right job;

Makes for higher performance, by putting right person on the right job;

3

Optimum utilization of the human resources

Helps to ensure optimum utilization of the human resources. By avoiding overmanning, it prevents under - utilization of personnel and high labor costs. At the same time it avoids disruption of work by indicating in advance the shortages of personnel; and

4

Succession planning for managers;

Ensures the continuous survival and growth of the enterprise through the succession planning for managers;

5

Job satisfaction and moral of employees

Improves job satisfaction and morale of employees through objective assessment and fair reward for their contribution.

1

Estimating the Manpower Requirements:

2

Recruitment:

3

Selection:

4

Placement and Orientation

5

Training and Development

6

Performance Appraisal

7

Promotion and career planning

8

Compensation

1

Estimating the Manpower Requirements:

Staffing function is the management process for the timely fulfilment of the manpower requirements within an organisation. These requirements may arise in case of starting a new business or expanding the existing one or they may arise as a matter of the need for replacing those who quit retire or or transferred or promoted from or are fired from the job.

Estimating manpower requirement means knowing how many persons are needed end of what type (i.e, educational qualification, skills, prior experience, personality characteristic etc) in the organisation to fill the various job positions created by designing and organisational structure.

Thus, various job positions are created. Clearly, performance of each job necessitates the appointment of a person with a specific set of educational qualifications, skills, prior experience and so on.

Thus, understanding manpower requirements is not merely a matter of knowing how many persons we need but also of what type.

Workload analysis would enable an assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives.

Workforce analysis is an assessment of the number and type of human resources available in the organization.

A situation of understaffing would necessitate the starting of the recruitment process.

Operationally, understanding the manpower requirements would necessitate workload analysis on the one hand and workforce analysis on the other.

2

Recruitment:

The information generated in the job description and the candidate profile may be used for developing the “situation vacant” advertisement. Advertising is commonly part of recruitment process and can occur through several means, through newspapers, through professional publication, through a job center, through campus interview etc.

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

The advertisement may be displayed on the factory/ office gate or else it may be got published in print media or flashed in electronic media.

Recruitment process

The various activities or steps involved with the process of recruitment.

Identification of the different sources of labour supply.

Assessment of their validity

Choosing the most suitable sources inviting application from the prospective candidates for the vacancies.

The objective of recruitment is to identify and attract potential employees with the necessary characteristics or qualification in the adequate number for the jobs available it locates available people for the job and invite them to apply for the job in the organization.

In other words essential objective of recruitment is to create a pool of the prospective job candidates.

3

Selection:

Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment.

it involves test and interviews. Thus who are able to successfully negotiate the test and the interviews are offered an employment contract.

It is a negative process because the candidates are required to take a series of employment tests and interviews. At every stage, many are eliminated and few move on to the next day until the right time is found.

Those who are able to successfully negotiate the test and the interviews are offered an employment contract, a written document containing the offer of employment, the terms and conditions and the date of joining.

Even in case of highly specialized jobs where the choice space is very narrow the rigour of the selection process so as to important purposes:

-It ensures that the organization gets the best among the available

-It enhances the self esteem and prestige of those selected and conveys to them the seriousness with which the things are done in the organization.

4

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 familiarizing him with the rules and policies of the organization.

5

Training and Development:

Training and development is an attempt to improve the current or future in increasing and employs ability to perform through learning usually by changing the employs attitude or increasing his or her skills and knowledge.

Organizations have either inhouse training centers or have forged alliances with training and educational institutes to ensure continuing learning of their employees

The organizations too benefit in turn. If employee motivation is high, their competencies are strengthened; they perform better and thus, contribute more to organizational effectiveness and efficiency. By offering the opportunities for career advancement to their members, organizations are not only able to attract but also retain its talented people.

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

Development refers to the learning opportunities designed to help employees grow it means growth of an individual in all respects.

6

Performance Appraisal

After the employees have undergone a period of training and they have been on the job for some time, there is a need to evaluate their performance.

Performance appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. The employee is expected to know what the standards are and the superior is to provide the employee feedback on his/her performance.

7

Promotion and career planning

Managers need to design activities to serve employees’ long-term interests also. They must encourage employees to grow and realize their full potential.

Promotions are an integral part of people’s career. They refer to being placed in positions of increased responsibility. They usually mean more pay, responsibility and job satisfaction.

8

Compensation

All organizations need to establish wage and salary plans for their employees. There are various ways to prepare different pay plans depending on the worth of the job.

Basically the price of the job needs to be determined.

Compensation, therefore, refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions and bonuses and indirect payments like employer paid insurance and vacations.

Direct financial payments

Direct financial payments are of two types :

a

Time based

A time based plan means salary and wages are paid either daily, weekly or monthly or annually.

b

Performance based

It means salary/wages are paid according to piecework. For example, a worker may be paid according to the number of units produced by him/her.

There are many methods to calculate the compensation under various incentive plans to reward performance.

Certain pay plans can be created which are a combination of time based pay plus incentives for higher performance.

Various plans may be formulated for paying employees time based wage or salary as well as performance based financial incentives and bonuses, and employee benefits.

Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes.

Reliance Industries, Marico  (Parachute, Saffola, hair & Care, Parachute Advanced, Nihar Naturals)  and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail.

A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to  a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates  in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%.

Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, “Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR,” said Dabur India HR chief.

Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc

1

Transfer

2

Promotion

1

Transfers:

It involves shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee.

It may lead to changes in duties and responsibilities, working condition etc., but not necessarily salary.

Transfer is a good source of filling the vacancies with employees from over-staffed departments.

It is practically a horizontal movement of employees. Shortage of suitable personnel in one branch may be filled through transfer from other branch or department.

2

Promotions:

Higher Position

Vertical shifting

Business enterprises generally follow the practice of filling higher jobs by promoting employees from lower jobs. Promotion leads to shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay.

Promotion is a vertical shifting of employees. This practice helps to improve the motivation, loyalty and satisfaction level of employees.

i

Cheaper

Filling of jobs internally is cheaper as compared to getting candidates from external sources.

ii

performance improvement

Employees are motivated to improve their performance. A promotion at a higher level may lead to a chain of promotion at lower levels in the organisation.

iii

economically

Internal recruitment also simplifies the process of selection and placement. The candidates that are already working in the enterprise can be evaluated more accurately and economically.

iv

Transfer is a tool of training

Transfer is a tool of training the employees to prepare them for higher jobs.

v

surplus departments to those where there is shortage of staff;

Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff;

i

Scope for induction of fresh talent is reduced.

When vacancies are filled through internal promotions, the scope for induction of fresh talent is reduced.

ii

Spirit hampered;

The spirit of competition among the employees may be hampered; and

iii

Reduce the productivity

Frequent transfers of employees may often reduce the productivity of the organisation.

iv

Lethargic

The employees may become lethargic if they are sure of timebound promotions;

v

recruitmentment-New enterprise cannot use internal sources of recruitment

A new enterprise cannot use internal sources of recruitment. No organisation can fill all its vacancies from internal sources;

1

Web Publishing:

2

Advertisement:

3

Recommendations of Employees:

4

Placement Agencies and Management Consultants:

5

Labour Contractors

6

Advertising on Television:

7

Campus Recruitment:

8

Casual callers

9

Employment Exchange:

10

Direct Recruitment:

1

Web Publishing:

Internet is becoming a common source of recruitment these days. There are certain websites specifically designed and dedicated for the purpose of providing information about both job seekers and job opening. These website are as www.naukri.com,  www.jobstract.com.

2

Advertisement

Advertisement in newspapers or trade and professional journals is generally used when a wider choice is required. Most of the senior positions of industry as well as commerce are filled by this method.

The advantage of advertising vacancies is that more information about the organisation and job can be given in the advertisement. Advertisement gives the management a wider range of candidates from which to choose.

3

Recommendations of Employees:

Applicants introduced by present employees, or their friends and relatives may prove to be a good source of recruitment. Such applicants are likely to be good employees because their background is sufficiently known.

A type of preliminary screening takes place because the present employees know both the company and the candidates and they would try to satisfy both.

4

Placement Agencies and Management Consultants:

In technical and professional areas, private agencies and professional bodies appear to be doing substantive work.

Placement agencies provide a nationwide service in matching personnel demand and supply.

These agencies compile bio-data of a large number of candidates and recommend suitable names to their clients. Such agencies charge fee for their services and they are useful where extensive screening is required.

5

Labour Contractors:

Labour contractors maintain close contacts with labourers and they can provide the required number of unskilled workers at short notice.

Workers are recruited through labour contractors who are themselves employees of the organisation.

6

Advertising on Television:

The practice of telecasting of vacant posts over Television is gaining importance these days.

The detailed requirements of the job and the qualities required to do it are publicised alongwith the profile of the organisation where vacancy exists.

7

Campus Recruitment:

Colleges and institutes of management and technology have become a popular source of recruitment for technical, professional and managerial jobs.

Many big organisations maintain a close liaison with the universities, vocational schools and management institutes to recruit qualified personnel for various jobs.

8

Casual Callers:

Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job-seekers can be a valuable source of manpower. A list of such job-seekers can be prepared and can be screened to fill the vacancies as they arise.

The major merit of this source of recruitment is that it reduces the cost of recruiting workforce in comparison to other sources.

9

Employment Exchange:

Employment exchanges run by the Government are regarded as a good source of recruitment for unskilled and skilled operative jobs.

In some cases, compulsory notification of vacancies to employment exchange is required by law. Thus, employment exchanges help to match personnel demand and supply by serving as link between job-seekers and employers.

the records of employment exchange are often not up to date and many of the candidates referred by them may not be found suitable.

10

Direct Recruitment:

Under the direct recruitment, a notice is placed on the notice-board of the enterprise specifying the details of the jobs available.

Jobseekers assemble outside the premises of the rganization on the specified date and selection is done on the spot.

The practice of direct recruitment is followed usually for casual vacancies of unskilled or semi-skilled jobs. Such workers are known as casual or ‘badli’ workers and they are paid remuneration on daily wage basis.

1

Qualified  Personnel:

2

Advertised widely: Wider Choice:

3

Competitive Spirit:

4

Fresh Talent:

1

Qualified Personnel:

By using external sources of recruitment, the management can attract qualified and trained people to apply for vacant jobs in the organisation.

2

Advertised widely :

Wider Choice:

When vacancies are advertised widely, a large number of applicants from outside the organisation apply. The management has a wider choice while selecting the people for employment.

3

Competitive Spirit:

If a company taps external sources, the extisting staff will have to compete with the outsiders. They will work harder to show better performance.

4

Fresh Talent:

The present employees may be insufficient or they may not fulfill the specifications of the jobs to be filled. External recruitment provide wider choice and brings new blood in the organisation. However, it is expensive and time consuming.

1

Lengthy process:

2

Costly process:

3

Dissatisfaction among existing staff:

1

Lengthy process:

Recruitment from external sources takes a long time. The business has to notify the vacancies and wait for applications to initiate the selection process.

2

Costly process:

It is very costly to recruit staff from external sources. A lot of money has to be spent on advertisement and processing of applications.

3

Dissatisfaction among existing staff:

External recruitment may lead to dissatisfaction and frustration among existing employees. They may feel that their chances of promotion are reduced.

1

Preliminary Screening:

2

Selection Tests:

3

Employment Interview:

4

Reference and Background Checks:

5

Selection Decision:

6

Medical Examination:

7

Job Offer:

8

Contract of Employment:

1

Preliminary Screening:

Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the information supplied in the application forms.

Preliminary interviews help reject misfits for reasons, which did not appear in the application forms.

2

Selection Tests:

An employment test is a mechanism (either a paper and pencil test or an exercise) that attempts to measure certain characteristics of individuals.

These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality.

Important Tests Used for Selection of Employees:

(i)

Intelligence Tests:( IQ)

This is one of the important psychological tests used to measure the level of intelligence quotient of an individual. It is an indicator of a person’s learning ability or the ability to make decisions and judgments.

(ii)

Aptitude (योग्यता)

 Test:

It is a measure of individuals potential for learning new skills. It indicates the person’s capacity to develop. Such tests are good indices of a person’s future success score.

(iii)

Personality Tests:

Personality tests provide clues to a person’s emotions, her reactions, maturity and value system etc. These tests probe the overall personality. Hence, these are difficult to design and implement.

(iv)

Trade Test:

These tests measure the existing skills of the individual. They measure the level of knowledge and proficiency in the area of professions or technical training. The difference between aptitude test and trade test is that the former measures the potential to acquire skills and the later the actual skills possessed.

(v)

Interest Tests:

Every individual has fascination for some job than the other. Interest tests are used to know the pattern of interests or involvement of a person.

3

Employment Interview:

(साक्षात्कार)

Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job.

The role of the interviewer is to seek information and that of the interviewee is to provide the same.

4

Reference and Background Checks:

Many employers request names, addresses, and telephone numbers of references for the purpose of verifying information and, gaining additional information on an applicant. Previous employers, known persons, teachers and university professors can act as references.

5

Selection Decision:

The final decision has to be made from among the candidates who pass the tests, interviews and reference checks. The views of the concerned manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee.

6

Medical Examination:

After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test. The job offer is given to the candidate being declared fit after the medical examination.

7

Job Offer:

The next step in the selection process is job offer to those applicants who have passed all the previous hurdles.

Job offer is made through a letter of appointment/confirm his acceptance. Such a letter generally contains a date by which the appointee must report on duty. The appointee must be given reasonable time for reporting

8

Contract of Employment:

There is also a need for preparing a contract of employment. Basic information that should be included in a written contract of employment will vary according to the level of the job, but the following checklists sets out the typical headings: Job Title, Duties, Responsibilities.

Date when continuous employment starts and the basis for calculating service, rates of pay, allowances, hours of work, leave rules, sickness, grievance procedure, disciplinary procedure, work rules, termination of employment.

Training

Development

i

It is a process of increasing knowledge and skills.

i

It is a process of learning and growth.

ii

It is to enable the employee to do the job better.

ii

It is to enable the overall growth of the employee.

iii

It is a job oriented process

iii

It is a career oriented process.

1

Better than hit and trial methods

2

Morale of employes- increases

3

Employee productivity

4

Equips the future manager

5

Effective response

i

Better than hit and trial methods

Training is a systematic learning, always better than hit and trial methods which lead to wastage of efforts and money.

ii

Morale of employes- increases

Training increases employee morale and reduces absenteeism and employee turnover.

iii

Employee productivity

It enhances employee productivity both in terms of quantity and quality, leading to higher profits.

iv

Equips the future manager

Training equips the future manager who can take over in case of emergency.

v

effective response

It helps in obtaining effective response to fast changing environment – technological and economic.

1

skills and knowledge

2

Increased performance

3

increases the satisfaction

4

more efficient

1

skills and knowledge

Improved skills and knowledge due to training lead to better career of the individual.

2

Increased performance

Increased performance by the individual help him to earn more.

3

increases the satisfaction

Training increases the satisfaction and morale of employees.

4

More efficient

Training makes the employee more efficient to handle machines. Thus, less prone to accidents.

Sn

Name of methods

Explanation

1

Apprenticeship Programmes:

APRENTICESHIP ACT – STIPEND .AFTER COLLEGE IN INDUSTRY .FOR COLLEGE PASS OUT JOB. AFTER PASS OU . THROUGH APPRENTICE BOARD.

Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill.

ITI COURCES :

People seeking to enter skilled jobs, to become, for example, plumbers, electricians or iron-workers, are often required to undergo apprenticeship training.

2

Internship Training:

On the job training

NO STIPEND – ENGEENEING AND MBA, INTERNSHIP BOARD . AFTER SECOND YEAR FOR TWO MONTHS. MBBS

PART OF PROGRAM. JOB EXPERINCEHIP .MARKS JUD JATA HAIN

It is a joint programme of training in which educational institutions and business firms cooperate.

Selected candidates carry on regular studies for the prescribed period. They also work in some factory or office to acquire practical knowledge and skills.

3

Vestibule Training:

Off the job training

Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a class room and employees use the same materials, files and equipment.

Example – Pilot training , Ashol leylands ,

Doctors dissection , MUNNA BHAI MBBS ,

Vestibule training Under this method, employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. ... Vestibule training is suitable where a large number of persons are to be trained at the same time for the same kind of work.

The vestibule training can be conducted in classrooms or the workstations; that can be within the main production plant or in close proximity to it. Under this training, the emphasis is on learning rather than production.

Advantages of Vestibule Training: Following are the main advantages of Vestibule Training: (i) Training is provided by experienced and expert trainers. (ii) It does not hinder the production process. (iii) Both theoretical and practical training is provided. (iv) Many people can be trained at a time.

4

Induction Training

Off the job training

Induction training is given to new employee to help them to settle down in the new environment. Induction training helps new employee in settling down quickly into the job becoming familiar with the people , the surrounding ,the job and the business

The duration of this may be from few hours to few days.