Business Studies 6 Marks Question

The process of staffing has the following steps:

1. Estimating the Manpower Requirements: You are aware that while designing the organizational structure, we undertake an analysis of the decisions and the decision-making levels, activities as well as relationship among them with a view to evolving the horizontal and vertical dimensions of the structure. Thus, various job positions are created.
2. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The information generated in the process of writing the job description and the candidate profile may be used for developing the ‘situations vacant’ advertisement. 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. This step involves locating the potential candidate or determining the sources of potential candidates.
3. Selection: Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. Even in case of highly specialised jobs where the choice space is very narrow, the rigour of the selection process serves two important purposes:

1. It ensures that the organization gets the best among the available.
2. It enhances the self-esteem and prestige of those selected and conveys to them theSeriousness with which the things are done in the organisation.

4. Placement and Orientation: Joining a job marks the beginning of socialisation of the employee at the workplace. The employee is given a brief presentation about the company and is introduced to his superiors, subordinates and the colleagues. He is taken around the workplace and given the charge of the job for which he has been selected. This process of familiarisation is very crucial and may have a lasting impact on his decision to stay and on his job performance.
5. Training and Development: What people seek is not simply a job but a career. Every one must have the opportunity to rise to the top. The best way to provide such an opportunity is to facilitate employee learning. Organisations have either inhouse training centers or have forged alliances with training and educational institutes to ensure continuing learning of their employees. 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.
6. Promotion and career planning: It becomes necessary for all organisations to address career related issues and promotional avenues for their employees. Managers need to design activities to serve employees’ long-term interests also. They must encourage employees to grow and realise their full potential.
7. Compensation: All organisations 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.

Staffing has been described as the management function of filling and keeping filled the positions in the organisation structure. Staffing is that part of the process of management which is concerned with making available, utilising and maintaining a satisfactory and satisfied work force.Proper staffing is required in an organisation because:

1. It helps in discovering and selecting competent work force.
2. It ensures higher performance by placing the right person on the right job,
3. It ensures survival and growth of the enterprise through succession planning for managers.
4. It helps to ensure optimum utilisation of human resources.
5. It improves job satisfaction and morale of employees through objective assessment and fair rewarding of their contribution.

Process of Selection:The important steps in the process of selection are as follows:
Step - 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.
Step - 2 Selection Tests: An employment test is a mechanism (either a paper and pencil test or an exercise) thatattempts to measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality.
Step - 3 Employment Interview: 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. Though, in present times, the interviewee also seeks information from interviewer.
Step – 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.
Step – 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.
Step – 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.
Step – 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.
Step – 8 Contract of Employment: After the job offer has been made and candidate accepts the offer, certain documents need to be executed by the employer and the candidate.

Internal source of recruitment refers to recruiting personnel from within the organization. Filling vacancies in higher jobs from within the organisation or through internal transfers has the following merits:

1. 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. This motivates the employees to improve their performance through learning and practice. Employees work with commitment and loyalty and remain satisfied with their jobs.
2. 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. This is a more reliable way of recruitment since the candidates are already known to the organisation;
3. Transfer is a tool of training the employees to prepare them for higher jobs. Also people recruited from within the organisation do not need induction training;
4. Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff.

Therefore Filling of jobs internally is cheaper as compared to getting candidates from external sources and that’s why organizations prefer internal sources over external sources.

Benefits to the organization The benefits of training and development to an organisation are as follows:

1. Training is a systematic learning, always better than hit and trial methods which lead to wastage of efforts and money.
2. It enhances employee productivity both in terms of quantity and quality, leading to higher profits.
3. Training equips the future manager who can take over in case of emergency

Benefits to the Employee: The benefits of training and development activity to the employees are as follows:

1. Improved skills and knowledge due to training lead to better career of the individual.
2. Increased performance by the individual help him to earn more.
3. Training makes the employee more efficient to handle machines. Thus, less prone to accidents.

External recruitment provides wide choice and brings new blood in the organisation.Advantages

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. 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. 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.

Limitations of External Sources

1. 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.
2. 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.

Vestibule 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. This is usually done when employees are required to handle sophisticated machinery and equipment.
Job Rotation: This kind of training involves shifting the trainee from one department to another or from one job to another. This enables the trainee to gain a broader understanding of all parts of the business and how the organisation as a whole functions. The trainee gets fully involved in the departments operations and also gets a chance to test her own aptitude and ability. Job rotation allows trainees to interact with other employees facilitating future cooperation among departments. When employees are trained by this method, the organisation finds it easier at the time of promotions, replacements or transfers.
Internship Training: 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.

1. Personnel Consultants: These personnel consultancy agencies have developed a lot in India. They recruit personnel on behalf of employers. This method of external recruitment is a costly affair. Although this method is very popular in western countries, it is not so popular in India.
2. 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. Unfortunately, the records of employment exchange are often not uptodate and many of the candidates referred by them may not be found suitable
3. 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 organization and job can be given in the advertisement. Advertisement gives the management a wider range of candidates from which to choose. Advertisements may be placed in leading newspapers. Its disadvantage is that it may bring in a flood of response, and many times, from quite unsuitable candidates.

1. The next three steps for choosing the best candidate are:

1. Employment Interview which is conducted to evaluate the applicant’s suitability for the job. Interview is formal, face to face conversation between the interviewer (s) and the applicant with a view to finalise the suitability or the candidate (s) keeping in view the job requirements.
2. Reference and background checks for the purpose of verifying the information and gaining additional information, about an applicant.
3. Selection decision from among the candidates who pass the tests, interviews and reference checks.

2. Values which Nishant wants to communicate to the society are:

1. Development of backward areas.
2. Providing job opportunities in rural areas.
3. Equality.
4. Optimum utilisation of resources.

Filling vacancies in higher jobs from within the organisation or through internal transfers has the following merits over external recruitment:

1. 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. This motivates the employees to improve their performance through learning and practice.
2. 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.
3. Transfer is a tool of training the employees to prepare them for higher jobs. Also people recruited from within the organisation do not need induction training;
4. Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff.
5. Filling of jobs internally is cheaper as compared to getting candidates from external sources.

The process of staffing has the following steps:

1. Estimating the Manpower Requirements: You are aware that while designing the organizational structure, we undertake an analysis of the decisions and the decision-making levels, activities as well as relationship among them with a view to evolving the horizontal and vertical dimensions of the structure. Thus, various job positions are created.
2. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The information generated in the process of writing the job description and the candidate profile may be used for developing the ‘situations vacant’ advertisement. 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. This step involves locating the potential candidate or determining the sources of potential candidates.
3. Selection: Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. Even in case of highly specialised jobs where the choice space is very narrow, the rigour of the selection process serves two important purposes:

1. it ensures that the organization gets the best among the available.
2. it enhances the self-esteem and prestige of those selected and conveys to them theSeriousness with which the things are done in the organisation

4. Placement and Orientation: Joining a job marks the beginning of socialisation of the employee at the workplace. The employee is given a brief presentation about the company and is introduced to his superiors, subordinates and the colleagues. He is taken around the workplace and given the charge of the job for which he has been selected. This process of familiarisation is very crucial and may have a lasting impact on his decision to stay and on his job performance.
5. Training and Development: What people seek is not simply a job but a career. Every one must have the opportunity to rise to the top. The best way to provide such an opportunity is to facilitate employee learning. Organisations have either inhouse training centers or have forged alliances with training and educational institutes to ensure continuing learning of their employees. 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.
6. Promotion and career planning: It becomes necessary for all organisations to address career related issues and promotional avenues for their employees. Managers need to design activities to serve employees’ long-term interests also. They must encourage employees to grow and realise their full potential.
7. Compensation: All organisations 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.

The process of selection has the following steps:Process of Selection:
The important steps in the process of selection are as follows:
Step - 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.
Step – 2 Selection Tests: An employment test is a mechanism (either a paper and pencil test or an exercise) thatattempts to measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality.
Step- 3 Employment Interview: 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. Though, in present times, the interviewee also seeks information from interviewer.
Step – 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.
Step – 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.
Step – 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.
Step – 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.
Step – 8 Contract of Employment: After the job offer has been made and candidate accepts the offer, certain documents need to be executed by the employer and the candidate.

Recruitment can be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The information generated in the process of writing the job description and the candidate profile may be used for developing the ‘situations vacant’ advertisement.

1. 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 organisation 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.
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 organization and job can be given in the advertisement.
3. 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.
4. 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 staffing function of managementfulfills this requirement and finds the right people for the right job. Basically, staffing fills the positions as shown in the organisation structure. staffing is a very important managerial function. No organization can be successful unless it can fill and keep filled the various positions provided for in the structure with the right kind of people.Proper staffing ensures the following benefits to the organisation:

1. Helps in discovering and obtaining competent personnel for various jobs.
2. Makes for higher performance, by putting right person on the right job.
3. Ensures the continuous survival and growth of the enterprise through the succession planning for managers.
4. Helps to ensure optimum utilization of the human resources. By avoiding overmanning, it prevents under-utilisation of personnel and high labour costs. At the same time it avoids disruption of work by indicating in advance the shortages of personnel.
5. Improves job satisfaction and morale of employees through objective assessment and fair reward for their contribution.

Filling vacancies in higher jobs from within the organisation or through internal transfers has the followingMerits of internal sources:

1. 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. This motivates the employees to improve their performance through learning and practice.
2. Internal ecruitment also simplifies the process of selection and placement. The candidates that are already working in the enterprise

Limitations of Internal Sources The limitations of using internal sources of recruitment are as follows:

1. When vacancies are filled through internal promotions, the scope for induction of fresh talent is reduced. Hence, complete reliance on internal recruitment involves danger of ‘inbreeding’ by stopping ‘infusion of new blood’ into the organisation;
2. The employees may become lethargic if they are sure of timebound promotions;
3. A new enterprise cannot use internal sources of recruitment. No organisation can fill all its vacancies from internal sources; can be evaluated more accurately and economically. This is a more reliable way of recruitment since the candidates are already known to the organisation;
4. Transfer is a tool of training the employees to prepare them for higher jobs. Also people recruited from within the organisation do not need induction training.

Staffing function The staffing function of management fulfills this requirement and finds the right people for the right job. Basically, staffing fills the positions as shown in the organisation structureImportance of Staffing:

1. Helps in discovering and obtaining competent personnel for various jobs;
2. Makes for higher performance, by putting right person on the right job;
3. Ensures the continuous survival and growth of the enterprise through the succession planning for managers;
4. Helps to ensure optimum utilization of the human resources. By avoiding overmanning, it prevents under-utilisation of personnel and high labour costs. At the same time it avoids disruption of work by indicating in advance the shortages of personnel; and
5. Improves job satisfaction and morale of employees through objective assessment and fair reward for their contribution.

Recruitment can be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The information generated in the process of writing the job description and the candidate profile may be used for developing the 'situations vacant' advertisement.

1. 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 organisation 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.
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 organization and job can be given in the advertisement.
3. 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.
4. 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.
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.

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 candidates are required to take a series of employment tests and interviews. At every stage many are eliminated and a few move on to the next stage until the right type is found.Process of Selection
The important steps in the process of selection are as follows: Step - 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. Step - 2 Selection Tests: An employment test is a mechanism (either a paper and pencil test or an exercise) thatattempts to measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality. Step - 3 Employment Interview: 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. Though, in present times, the interviewee also seeks information from interviewer. Step - 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. Step - 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. Step - 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. Step - 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. Step - 8 Contract of Employment: After the job offer has been made and candidate accepts the offer, certain documents need to be executed by the employer and the candidate.

1. Internship Training: 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.
2. Vestibule 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. This is usually done when employees are required to handle sophisticated machinery and equipment.
3. Job Rotation: This kind of training involves shifting the trainee from one department to another or from one job to another. This enables the trainee to gain a broader understanding of all parts of the business and how the organisation as a whole functions. The trainee gets fully involved in the departments operations and also gets a chance to test her own aptitude and ability. Job rotation allows trainees to interact with other employees facilitating future cooperation among departments. When employees are trained by this method, the organisation finds it easier at the time of promotions, replacements or transfers.

1. Profit Sharing: Profit sharing is meant to provide a share to employees in the profits of the organisation. This serves to motivate the employees to improve their performance and contribute to increase in profits.
2. Co-partnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in line of various incentives payable in cash. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation. In Infosys the scheme of stock option has been implemented as a part of managerial compensation
3. Suggestion scheme: The organization should look forward to taking suggestions and inviting suggestion schemes from the subordinates. This inculcates a spirit of participation in the employees. This can be done by publishing various articles written by employees to improve the work environment which can be published in various magazines of the company. This also is helpful to motivate the employees to feel important and they can also be in search for innovative methods which can be applied for better work methods. This ultimately helps in growing a concern and adapting new methods of operations.

Benefits of training to the organisation:

1. It avoids wastage of efforts and money as training is systematic learning, better than hit and trial methods.
2. It enhances employee productivity both in terms of quantity and quality leading to higher profits.
3. It equips the future manager to take over in an emergency.
4. It reduces employees’ turnover as it increases employee morale and reduces absenteeism.
5. It helps in obtaining effective response in a fast changing environment.

Meaning: Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.
External Sources of Recruitment: Following are the external sources of recruitment:

1. Direct Recruitment: Sometimes information about the vacant posts is pasted on boards placed at important places by the organisations. Such information is usually displayed at the Workshop, Office or the Factory Gate. People who are interested in these jobs apply for them. This method of recruitment is meant only for the recruitment of unskilled workers.
2. Campus Recruitment: It refers to recruitment from educational institutions. Some big organisations remain in touch with the educational institutions with the purpose of recruiting young talented people. These persons come from colleges, universities, management institutes, technical institutes, etc. These institutions have a placement cell each with the purpose of helping their young students to find suitable jobs. The human resource managers of various companies get in touch with these placement cells and obtain the suitable persons for appointment.
3. Recommendations: With a view to establishing good employer-employee relations, sometimes managers recruit people on the recommendation of their existing employees. In this way, present employees feel encouraged and there is a complete control over new employees. This source is mostly used for appointing lower level employees.
4. Labour Contractors: They are the link between labourers and managers. They remain in contact with both the labourers and the managers. As and when managers put up demand for labourers, these contractors make available their supply in no time. This system of labour recruitment is very much popular in road construction, building construction and plantation industry.

1. Labour Welfare Stage.
2. Personnel Management Stage.

S.No.	Basis of Distinction	Internal Sources	External Sources
1.	Familiarity	Employees are familiar to the organisation.	Outsiders are not familiar to the organisation.
2.	Choice	The management has a limited choice in choosing the most suitable candidates for the vacancies.	The management has a wide choice in choosing the most suitable candidates for the vacancies.
3.	Infusion of new blood	These sources prevent the infusion of new and new ideas into the organization.	These sources permit the infusion of new blood and new ideas into the organisation.
4.	Competition	Internal employees may lose the drive for proving their worth since they expect automatic promotion by seniority and sure prospects.	Internal employees do not lose the drive for proving their worth since they have to compete with outside candidates.
5.	Economy	The process of internal recruitment is less expensive as it does not involve expenses in the form of advertisement for vacancies etc.	The process of external recruitment is more expensive as it involves considerable expenses in the form of advertising for vacancies etc.
6.	Motivation vs. conflict	Internal recruitment acts as a source of motivation since opportunity for promotion is inherent in internal recruitments.	External recruitment acts as a source of conflict, dissatisfaction and frustration for those who aspire promotion but are not selected.
7.	Time consuming	It is less time consuming.	It is more time consuming.
8.	Quality	It may not involve quality of recruitment since it restricts the option and freedom in choosing the candidates.	It may involve quality of recruitment since large number applicants are available.

S.No.	Basis of Distinction	On the Job Training	Off the Job Training
1.	Principal adopted	On-the-Job methods refer to the methods that are applied to the workplace, while the employee is actually working. It means, learning while doing.5	Off-the-Job methods are used away from the work place. It means learning before doing.
2.	Place of training	The employees are trained on the job at their workplace.	The employees are trained away from their actual workplaces.
3.	Techniques of training	The Techniques of on the job training include: Apprenticeship programme. Internship. Induction training.	The techniques of off the job training include: Classroom lectures. Conferences. Seminars.
4.	Trainers	Experienced workers, first line supervisors and specially qualified instructors serve as trainers in on the job training.	Usually, the academicians, Professionals and technicians from outside agencies serve as trainers in off the job training.
5.	Merit	It helps trainees to learn things by doing and quickens the process of self-learning and self-correction.	It helps trainees to learn things in a steady and systematic manner without any job pressure.
6.	Demerit	It requires trainees to learn under job pressure.	It does not quicken the process of self-learning and self-correction.

External sources of recruitment are needed to bring fresh talent in the organisation.Advantages of external sources of recruitment:

1. Fresh talent: The entry of fresh talent into the organisation is encouraged. New employees bring new ideas to the organisation.
2. Wider choice: External sources provide a wider choice of personnel to choose from.
3. Qualified personnel: Requisite type of personnel having the required qualifications, training and skills are available for the external sources.
4. Competitive spirit: The internal employees aspiring for higher positions prepare themselves for improving their performance to compete with the outsiders for higher jobs.

Limitations of external sources recruitment are:

1. The present employee lose their sense of security and tend to develop indifference towards the organisation.
2. It is more expensive and time consuming to recruit people from outside.
3. Deterioration in employer-employee relationship which may cause industrial strife and unrest, strikes and lockouts.
4. Personnel selected from outside may suffer from danger of adjustment to the new work environment.

Staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in the organisation. This function involves determination of the size and categorisation of required personnel. It is also concerned with employing the right type of people and developing their skills through training. The staffing function focuses on maintaining and improving the competence and performance of the personnel in the organisation. Importance of staffing function is as follows:

1. Key to other managerial functions: Staffing injects life into the organisation which is otherwise an empty shell of job positions. The staffing function affects not only planning but also the functions of direction and control of the efforts of people. In fact the effectiveness of other managerial function depends on the effectiveness of the staffing function. It identifies people who possess the right combination of skill, attitude and interest. An organisation which employs the right persons for the right jobs will be more dynamic and efficient in the complex external environment.
2. Human resources as assets: All other physical assets like plant and machinery buildings, materials and technology are of no use and remain inactive unless there are competent people willing and able to operate them. The quality of the human assets of an organisation is its major source of advantage over other competing organisations.
3. Effective use of technology and other resources: It is the human factor that is instrumental in the effective utilization of latest technology, capital, materials, etc. The management can ensure right kind of personnel by performing the staffing function.
4. Growth of the enterprise: Ensures the continuous survival and growth of the enterprise through the succession planning for managers.
5. Job satisfaction: Through objective assessment of employees and fair reward for their contribution, it improves job satisfaction and morale of employees.

It refers to filling and keeping filled the posts with people. Process.
The staffing process includes the following steps:

1. Estimating the Manpower Requirements: At the first step of staffing the need for required number of employees is estimated. At the time of determining the number of persons required, the possibilities regarding internal promotions, retirements, resignations and dismissals, etc. are also taken into consideration.
2. Recruitment: The process of recruitment includes the search of the various sources of employees, and encouraging them to send their applications to the enterprise.
3. Selection: Under the process of selection, competent applicants are selected out of a large number of them. It is important to keep in mind that the ability of the applicant and the nature of work must match.
4. Placement and Orientation: Placement means to join the post for which he/ she has been selected. Under orientation the employee is given a brief presentation about the company and is introduced to his superiors. Subordinates and colleagues.
5. Training and Development: At this step of process of staffing,training and development are imparted to the employees so that their efficiency and effectiveness is increased.
6. Performance Appraisal: At this step the capability of every employee is judged. To judge his capability his actual work performance is compared with the work assigned to him.
7. Promotion and Career Planning: Under this step, in the process of staffing, employees get promoted to higher posts on the basis of their capability.
8. Compensation: This step of staffing process involves fixing the compensation of an employee for his contribution to the organisation. Compensation refers to all forms of pay and rewards going to employees. Basically, it is the price for the job.

Merits: External recruitment source has the following merits:

1. Qualified Personnel: The external source of recruitment gives an opportunity to the qualified people from outside the organisation to enter it. This benefits both the organisation and the applicants from outside.
2. Wider Choice: By using the external source of recruitment, the number of applicants increase manifold which in turn increase the area of choice. The managers can appoint the most talented persons after examining the capabilities and talents of all the applicants.
3. Fresh Talent: The external source of recruitment helps the people with new and modern ideas to enter an organisation which certainly helps the organisation.

Limitations: Even if there are many advantages of the external recruitment, it is not without disadvantages.
Following are its major demerits:

1. Dissatisfaction among Existing Staff: When the external system of recruitment is adopted, it puts an end to the chances of promotion of the existing staff. This naturally affects their morale and they do not work with complete dedication.
2. Lengthy Process: The external system of recruitment is a lengthy process involving advertisement for the posts, wait for the application's selection, etc. which consumes a lot of time. Since it is a lengthy process, sometimes it is not considered appropriate.
3. Costly Process: The external process of recruitment involves advertisement and a long selection process and above all training the selected candidates involves a lot of expenditure. Therefore, it is an expensive process.

The need of training can be clarified with the help of its advantages. They are given below:

1. Benefits to the Organisation: Main advantages of training to the organisation are as follows:

1. Most Economical and the best use of Material and Equipments: Each employee working at any level makes use of machine and material. For instance, at lower level machine and material are used, at middle and higher level, computers, typing machines and writing material are used. Trained employees use these machines and material properly and minimise wastage.
2. Improvement in Quality and Quantity of Output: Training makes it possible to improve the quality and quantity of output. Consequently, cost of production per unit falls. It is important to note here that output does not mean goods manufactured by machines alone but it refers to all jobs performed at all managerial levels. It is, therefore, evident that training improves knowledge and skill of all levels of employees and their performance turns excellent.
3. Less Requirement of Supervision: Trained employees are skilled in their jobs, so their work does not require much supervision. They can utilise the time thus saved in some other creative works.

2. Benefits to the Employees: Alongwith organisation, the employees are also benefitted by training. The advantages to them are cited below:

1. Increase in Capacity and Efficiency: Through training one learns the art of doing a special job methodically. It increases the skill and efficiency of the employee.
2. Increase in Market Value: Trained employees have a better market value. Increased market value means that other organisations are always willing to employ trained personnel at higher remuneration. Consequently, if any employee is feeling uneasy in an organisation because of low remuneration, he can very easily join another organisation at higher remuneration.
3. Fewer Accidents: Reduction of accidents is not only beneficial to the organisation it also protects the life of the worker. By learning the art of operating the machine, the rate of accidents can be minimised. This art can be learnt by training alone.

Training: A process designed to maintain and improve current job performance is called training.
Development: A process designed to develop skills necessary for future work activities is called development.
Distinction: Difference between Training and Development:

S. No.	Basis of Difference	Training	Development
1.	Meaning	It is a process to increase bothknowledge and skill.	It is a learning process.
2.	Purpose	Its purpose is to develop special skill related to the job.	Its purpose is to develop totalpersonality of a person.
3.	Job or Career	It is a job-oriented process.	It is a career-oriented process.
4.	Scope	The scope of training is limited. It is just a subset of development. Scope of learning is less in training.	The scope of development is broad. Training is just a subset of it.

Staffing refers to the function of finding the right people for the right job. It is an important aspect of management as it ensures that the right people with the needed qualifications are chosen for the work.
It ensures that the vacancies are filled and always remain occupied. Staffing involves various stages including recruitment through various sources, right selection out of the applicants, placement and orientation, training of the employees, etc. Managing the human element is a requisite function of any organisation as it serves the basis of the level of efficiency of the organisation. Thus, success of any organisation depends on how effectively this function can be performed and to what extent the productivity can be increased with efficient staffing. Nowadays, it is seen that organisations that are large in size, maintain a separate department for dealing with this function. This department is generally known as 'Human Resource Department'. Under this department, the various tasks of staffing are performed by specialised managers. Along with staffing they also take care of the labour grievances. Human resource management thus act as a link between the workers and the managers.
However, staffing does not necessarily require a separate department and rather, is a function to be performed by every manager himself. Staffing forms an essential part of management. Managers here play an important role as they make sure about the optimum utilisation of the manpower. It is their task to watch if there is any vacancy and also, if any extra manpower is needed. Subsequently, they should work on how the recruitment has to be done, what qualifications are necessary for the applicants to apply for the job, and to what extent, training is necessary for that particular job. As managers are more closely related to the workers, they can work on the staffing process more efficiently. They can set the required qualifications for a particular job according to their need and work. For example, if a manager needs two subordinates to work under him then he'll be able to mention the requirements more clearly. Similarly, they can perform the task of recruiting the personnel more smoothly as they would know what kind of personnel he would require and through what source he can gather an efficient pool of applicants, may it be internal or external sources, depending on his needs. As the main seekers of the employees, they can carry out the selection process of the right candidate in the best possible manner. Along with this, managers can also perform other important aspects of staffing namely, appraisal, promotions and career planning.
Thus, it can be said that staffing function is performed by every manager and not necessarily by a separate department.

Human resource management is a wider term as compared to staffing. It includes staffing, record keeping, personnel policies formulation, conducting personnel research, providing expert’s services, etc. Hence, staffing is a part of the human resource management and not all of it. The areas of human resource management can be divided into following categories:

1. Recruitment: The primary function of the human resource manager is to find out the number of employees required by the organisation and make provision for their recruitment. To discharge this function he indulges himself in activities like recruitment, selection, placement, training, promotion, transfer, etc.
2. Providing Expert Services: Human resource manager renders certain services which require special knowledge, e.g., job evaluation, performance appraisal and negotiating with trade unions.
3. Developing Compensation and Incentive Plans: Human resource manager conducts research from time to time with the aim of improving upon the policies concerning personnel. On the basis of his research, he brings to the notice of top-level management new techniques in different fields of human resource management, such as suggesting new compensation and incentive plans.
4. Handling Grievances and Complaints: It is the responsibility of the human resource manager to establish cordial relations between the employers and the employees. To do this, he informs both the parties about the expectations of each other. In the event of disputes arising between them occasionally, he serves as a pacifier.
5. Providing for Social Security and Welfare of Employees: It is a responsibility of the human resource management to formulate policies to provide social security and welfare of employees. These policies cover different aspects of employees, e.g., recruitment policy, selection policy, promotion policy, retirement policy, etc. While formulating these policies, human resource manager keeps in mind the interests of both of the organisation and the employees. Moreover, he also ensures proper implementation of these policies.
6. Defending the Company in Law Suits: In India, government has passed several legislative measures relating to the employees, such as, Workmen’s Compensation Act, Employees State Insurance Act, etc. It is the function of the human resource manager to enforce the provisions of such acts in his organisation.

Staffing process refers to the procedure of filling the vacancies and keeping them filled. It focuses on timely fulfillment of the human resource required within the organisation. According to 'Theo Haimann', 'staffing pertains to recruitment, selection, development, training and compensation of subordinate managers. This definition includes the steps involved in the staffing process. Following is a brief description of various steps involved in staffing.

1. Estimation of the Required Manpower: The process of estimating manpower requirement is the basic step in the process of staffing. It refers to knowing the number and the kind of persons that are required in the organisation. Estimation process involves two steps-workload analysis and workforce analysis. Work load analysis implies an estimation of the number and the kind of persons required for various jobs. On the other hand, workforce analysis implies an estimation of the existing persons. The two-step analysis reveals whether there is any overstaffing or understaffing in the organisation and thereby, forms the basis of the staffing process. For example, a situation of understaffing would imply that more personnel are required to be appointed and a situation of overstaffing would imply that some of the existing personnel need to be removed.
2. Recruitment/ Searching: It refers to enlisting and searching the suitable candidates for the job. It is the process of searching the appropriate people for the job and influencing them to apply for the job. Recruitment creates a pool of prospective candidates for a job. It involves searching through various sources that includes internal sources (transfers and promotions) and external sources (advertising and placement agencies). It forms the basis for the selection process by attracting the aspirants towards the organisation.
3. Selection: Selection involves choosing the right candidate out of the gathered pool of aspirants which is created after recruitment process. It is a rigorous procedure and comprises of series of tests, interviews, etc. The candidates who are not able to negotiate the selection process are rejected. It ensures that only the competent and the best ones are selected for the job. It is a highly important process as it forms the basis for working efficiency of the organisation.
4. Induction and Placement: Once the selection is done it becomes important to make the selected employees familiar with the working environment of the organisation. Induction involves giving a brief overview about the workplace, introducing them to other employees and the managers and making them comfortable with the work environment. Placement refers to occupying the position by the employee for which he has been selected.
5. Training and Development: Next step in the staffing process is training and development of the employee. Both the process emphasise on improving the employee competence. Training is a process of increasing the employee's capabilities and skills required for performing the job. Development, on the other hand, focuses on the overall growth of the employee by enhancing his thinking and understanding capabilities. They help the workers to upgrade their knowledge and increase their efficiency. Moreover, training and development motivates the workers and provides them opportunities for growth and career development.
6. Appraisal: Performance appraisal is an important aspect of any organisation as it helps in evaluating the work of the individuals. Appraisal implies assessing the performance of the employee against certain predetermined standards. In addition, under performance appraisal the superior provides proper feedback to the employee so that right measures can be taken for increasing the working efficiency.
7. Promotions: Every employee needs encouragement and motivation for continuing the work with right efficiency. Promotion of the employee in terms of position, pay, etc. helps in providing job satisfaction to the employee and encourages them to realise their potential. Promotions serve the long term interests of the employees.
8. Compensation: Worth of the job is an important aspect to determine. All organisations need to establish the right pay or salary for each job. Compensation entails the price of a job along with the rewards that the employee deserves. Compensation provided to the employee can be in direct terms (that is, wages and salaries) as well as in indirect terms (such as insurance, bonus, etc.).

Merits: Merits of internal sources of recruitment are as under:

1. Increase in Motivation: Motivation of the employees of the organisation is boosted when recruitment is made by internal sources, particularly by promotion. If they know before hand that their promotion is possible, they will feel inspired. Ambition to occupy post of higher rank will add to their morale and they will perform their existing duty with utmost care and efficiency.
2. Industrial Peace: Because of promotional avenues employees get satisfied and hence, industrial peace is established. The promotion process continues from top to bottom in the whole organisation. This motivates the employees to enhance their performance through learning and practice.
3. Easy Selection: Organisation has full information about the employees working there. As such, their selection for the higher post involves no risk.

Limitations: Following are the limitations of internal sources of recruitment:

1. Stops the entry of Young Blood: The greatest defect in the system of internal recruitment is that the young and technically sound people do not get a chance to enter the company. Consequently, old people run the organisation with the help of their out-dated ideas and no new idea can develop.
2. Employees become Lethargic: Internal source of recruitment creates a definite feeling of promotion among the employees. This feeling makes them lethargic and it affects their performance.
3. Not Available in New Organisations: Recruitment through this source is possible only in the previously established organisations. The new organisations have to make use of the external source. Moreover, it is not essential that the entire recruitment need of the old organisations may be fulfilled through this source.

1. Management Consultants or Head Hunters: These days management consultants are available in the market. These firms are experts in the recruitment of managerial staff. In case of a vacant managerial post in an organisation their help can be sought. These firms are already in contact with suitable candidates for the managerial posts. Whenever, a demand is placed before them, they offer their candidates for such posts. For rendering this services they get their fees or commission. These firms also perform the job of advertisement for recruitment when the request is made to them.
2. Employment Exchanges: Employment exchanges are set up by the government in almost all districts. Name and other particulars of a job-seeker are recorded in the employment register. Under this system, personnel managers forward information regarding vacant jobs to the concerned employment exchange. Employment officer, in turn, forwards the names of applicants with requisite qualifications, from among those entered in his register, to the organisation. Manager of the organisation, interviews them and makes selection as per his requirement. This method of recruitment is mostly followed to select typists, clerks, peons, etc.
3. Media Advertising: Media is an effective way of finding out employees from outside the organisation. Through it people are attracted towards the organisation for higher and medium level jobs in large number. Advertisement is made with the help of newspapers, employment news, television, magazines, etc. The advertisement gives information about the number of vacant posts, nature of the job, required qualifications, remuneration, etc. This enlarges the area of selection for the organisation and as a result of it the appointment of good employees becomes possible. However, under this system sometimes a large number of unqualified applicants send their applications which results in a loss of time and money.

Selection is a procedure to choose the appropriate candidates out of the numerous aspirants. It is a rigorous process as it involves various stages of tests and interviews. Selection process aims at getting the best out of the recruited pool so that work efficiency can be maximised. Following are the steps involved in the selection process.

1. Screening: To begin with, it is necessary to eliminate those candidates who do not fulfill the basic criteria and qualification required for the job. This is done through preliminary screening by examining the information provided in the application forms. These forms may be in the form of online application or paper applications. Along with this, preliminary interviews can also be conducted to bring out the facts which are not written in the application forms and thereby, help in rejecting the misfits.
2. Test: Test is a mechanism that helps in judging certain characteristics of the aspirants. These characteristics can be regarding skills, knowledge, intelligence, etc. Various forms of testing are Intelligence test, Aptitude test, Personality test, Trade test and Interest test. They assess the individuals on different platforms and find out the suitable candidates for further selection process. For example, personality tests judge the candidate for characteristics such as maturity level, emotional control, etc. Similarly, trade test examine the skill and knowledge of the individual.
3. Personal Interview: Personal interviews are an integral part of selection process that includes conversation of the candidates with the managers. Herein, in-depth conversations are conducted to judge the suitability of the individual for the job. Sometimes, the individual may also seek information regarding the organisation in such interviews.
4. Background Checks: Once the individuals pass through the interviews, some organisations ask for references of other persons such as previous employers, other known persons. From these references the organisation aims at verifying the information provided by the candidate. Moreover, these references also act as a source of additional information of the candidate.
5. Selection Decision: After the tests and interviews are completed, the final selection is done. The appropriate candidates are chosen by the concerned managers.
6. Medical Examination: Few organisations emphasise on conducting a medical examination to check the health of the candidates. The job offer is given after they are declared fit by a medical practitioner.
7. Job Offer: Next step is offering the job letter to the selected applicants. It refers to an appointment letter given by the organisation to confirm that the individual has been selected. Such letter generally comprises of such information as date of joining and the time of reporting.
8. Employment Contract: Once the job letter is given, the candidates have to fill-up some forms that are necessary for the future references. One such form is attestation form that holds information about the candidates which are attested by him/her. Another document is the contract of employment. It comprises of details such as salary, date and terms of joining, leave rules, working hours, allowances, etc.

Training is an important aspect of any organisation. It aims at building the skills and abilities of the individuals to perform a job. Training is an essential part of the job which attempts at improving the aptitude and knowledge of a person as per the job requirement. With the ever changing business environment, the complexity of the jobs has increased. Thereby, training has become all the more essential. The following are the highlighted benefits of training to the employee and the organisation.
Benefits to the Employee:

1. Better Career Opportunities: Training enhances the skill and knowledge of the employees and thereby, helps in improving their career prospects.
2. Earn More: By helping the individual to learn more it assist them to earn more. Training enhances the individuals understanding and knowledge. Thereby, it improves their efficiency and performance. As a result, it gives them a chance to earn more.
3. Less Accident Prone: Training attempts to make the employees more adept and efficient in handling the machines. Jobs that require the employees to work with complex machines and in more accident-prone areas need to emphasise strongly on training and development, as it helps them in taking precautionary actions. Thus, it makes the employee less prone to accidents.
4. Self-Confidence: Development and training direct the individuals to work more efficiently that in turn builds up required morale within the individuals. It increases their self-confidence and self-reliance thereby, contributing to higher job-satisfaction.

Benefits to the Organisation:

1. Less Wastage: Training is a concept that involves systematic learning of work. It is a more efficient way of learning than any hit and trial method. This leads to less wastage of time and money. Thereby, it helps in optimum utilisation of resources.
2. Higher Profits: By developing the individuals and making them more efficient, training enhances their productivity in work. Due to increase in both qualitative and quantitative productivity, the profits of the company rise.
3. Managerial Efficiency: Training prepares the employees to face new challenges in different situations. This helps them in building effective responses to various situations. Training also equips the future managers to take precautionary step in case of emergency.
4. Reduced Absenteeism: Effective training helps in boosting the morale of the employees. Thereby, it helps in reducing the rate of absenteeism and employee turnover.