CBSE Class 12th Business Studies Notes - N6

Free Business Studies - Class 12th (CBSE) - Notes - N6 - Staffing

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This is a platform where you will find revision notes for your CBSE Class 12th for Business Studies.

On this page, you can read the quick revision notes for Chapter 6 (Staffing) to score better in your exams.

Learn The Topics

1. Staffing
2. Recruitment
3. Selection
4. Training and Development

A Learning for You

• Core definition and importance of staffing in management.
• Eight-step staffing process: from manpower planning to compensation.
• Distinction between internal vs. external recruitment sources.
• Detailed selection procedure and key employment tests.
• Training vs. development concepts with on-the-job and off-the-job methods.
• Clear comparisons: recruitment vs selection, internal vs external recruitment, training vs development.

Let's start the revision notes.

Revision Notes for Class 12th Business Studies

1. Staffing

Definition of Staffing

• Staffing consists of manpower planning, recruitment, selection, training, compensation, promotion, and maintenance of managerial personnel.
• It is the managerial function of filling and keeping filled positions in the organisation's structure. 
• The staffing function of management recognises the importance of every single person employed by an organisation.

Importance of Staffing

• Filling the roles by obtaining competent personnel
• Placing the right person in the right job
• Growth of enterprise
• Optimum utilisation of human resources
• Improves job satisfaction and morale of employees

Staffing Process

1. Estimating the manpower requirements:
• Workload Analysis: It involves determining the number of types of human resources required to perform various jobs and to accomplish organisational objectives.
• Workforce Analysis: It estimates the number of types of human resources or employees available so that it may be known whether the organisation is understaffed, overstaffed, or optimally staffed.
2. Recruitment
3. Selection
4. Placement and Orientation
5. Training and development
6. Performance Appraisal
7. Promotion and Career planning
8. Compensation

The staffing content ends here. Now, let's focus on the recruitment part.

2. Recruitment

Definition of Recruitment

• Recruitment is defined as the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.
• Recruitment brings together the job giver (employer) and the job seekers (applicants).
• Recruitment can be done either from inside or from outside the organisation.

Sources of Recruitment

There are two sources of recruitment:

1. Internal Sources
2. External Sources

Let's discuss both of them below:

1. Internal Sources: This includes the vacant job positions that are filled by promoting the existing employees of the organisation.

• Transfer means the shifting of an employee from one job to another or from one department to another or from one branch to another, without any change in the responsibilities, salary, and status of the employee. 
• It is the horizontal shifting of an employee. 
• Shortage of suitable employees in one department or branch may be fulfilled through transfer from an over-staffed department or branch.
• Promotion refers to shifting an employee from a lower job position to a higher job position. 
• It includes higher status, responsibilities, facilities, and pay. It is a vertical shift of an employee. 
• It helps in improving the motivation, loyalty, and satisfaction level of employees. 
• It has a psychological impact on employees because a promotion to a higher level may lead to a chain of promotions at lower levels in an organisation.

2. External Sources: When the candidates from outside the organisation are invited to fill the vacant job position. Below are its types:

• Direct recruitment
• Casual callers
• Advertisement (Newspapers)
• Employment Exchange
• Placement agencies and management consultants
• Campus recruitment
• Recommendations of employees
• Labour contractors
• Advertising on television
• Web publishing

The recruitment revision notes end here. Now, let's concentrate on the selection part.

3. Selection

Definition of Selection

• Selection can be defined as discovering the most promising and suitable candidate to fill the vacant job position in the organisation.
• It is called a negative process because the number of candidates rejected is much greater than the number selected.

Process of Selection

1. Preliminary screening
2. Selection tests
• Intelligence test
• Aptitude test
• Personality test
• Trade test
• Interest test
3. Employment interview
4. Reference and background checks
5. Selection decision
6. Medical examination
7. Job offer
8. Contract of employment

The selection revision notes end here. Now, let's concentrate on the training and development part.

4. Training and Development

Definition of Training and Development

• Training means equipping the employees with the required skills to perform the job.
• Development refers to the overall growth of the employee. It focuses on personal growth and the successful employees’ development.

Different Types of Training Methods

1. On the Job Methods
• Apprenticeship programmes
• Internship training
• Induction or Orientation Training
2. Off the Job Methods  
• Vestibule training

Difference between Internal and External Source of Recruitment

S. No.	Point of difference	Internal recruitment	External recruitment
1.	Meaning	Internal recruitment means making use of existing staff to fill up the vacant job positions in the organisation.	External recruitment means making use of new personnel or outsiders to fill up the vacant job positions in the organisation.
2.	Time	It is less time-consuming.	It is more time-consuming.
3.	Economy	This process is more economical as it does not involve any cost of searching external sources.	This process is costly as vacancies have to be notified in newspapers, magazines, etc.
4.	Quality	There is a limited choice so better quality may not be assumed.	It provides a wider choice and the best quality is assumed.
5.	Morale of the employees	This method boosts up the morale of the employees because existing staff gets chance of promotion.	This method brings down the morale of the employees as they do not get chance of growth and development.

Difference between Recruitment & Selection

S.No.	Point of difference or basis	Recruitment	Selection
1.	Meaning	It is a process of searching suitable candidates to fill up vacant job positions.	It is a process of screening and selecting the most eligible candidates and offering them jobs.
2.	Stage	Recruitment precedes the staffing function.	Staffing always starts where recruitment ends.
3.	Nature	It is a positive process as more and more candidates are induced to apply for the job.	It is a negative process and more candidates are rejected than the number of selected candidates.
4.	Contract of service	There is no contractual relation created.	Selection involves a contract of service between employer and employee.

Difference between Training & Development

S.No.	Point of difference	Training	Development
1.	Concept / depth of knowledge	Training is concerned with teaching technical skill only.	Development is concerned with teaching technical, human and conceptual skill.
2.	Suitability	Training is more suitable for technical staff.	Development is more suitable for managerial staff.
3.	Nature	Training concentrates on developing the skill already possessed by the employees.	Development concentrates on development of hidden qualities of the employees.
4.	Methods used	In training, on-the-job methods are preferred.	In development, off-the-job methods are preferred.
5.	Focus / purpose	Training focuses on present requirements of the organisation.	Development focuses on present as well as future requirements of the organisation.
6.	Time	It is a short-term process.	It is a long-term process.
7.	Initiative	The boss or superior takes initiatives for imparting training to subordinates.	The individual takes initiatives himself for his growth and development.
8.	Duration	Training is short-term; its duration is fixed and certain.	Development is a never-ending procedure; its duration is never defined.
9.	Levels of trainees involved	Useful for non-managerial (operative) employees or lower-level managers.	Useful for managerial personnel, i.e., middle- and top-level managers.
10.	Centered	It is work-centered.	It is person-centered.

The End