BM Chap 8

Staffing

may be defined as the management function that determines human resource needs, recruits, selects, trains, and develops human resources for jobs created by an
organization.

Types of Staffing

• Effective
• Ineffective

Effective staffing

Make the company competitive

Ineffective staffing

Growth and survival is compromised

The Staffing Procedure

➢ Human Resource Planning
➢ Recruitment
➢ Selection
➢ Induction and Orientation
➢ Training and Development
➢ Performance Appraisal
➢Employment Decisions
➢ Separation

Human Resource Planning

○ Forecasting
○ Programming
○ Evaluation and Control

Forecasting

This is an assessment of future human resource needs of the
organization in relation to its current capabilities.

Methods of Forecasting

● Time series methods
● Explanatory, or casual models

Time series methods

use historical data to develop forecasts of the
future.

Explanatory, or casual models

attempts to identify the major variables that are
related to or have caused particular past conditions
and then use current measures of these variables
to predict future conditions.

Explanatory, or casual models
(Types)

● Regression models
● Econometric models
● Leading indicators
● Monitoring Methods

Econometric models

This is a system of regression equations estimated from past time-series data and used to show the effect of various
independent variables on various
dependent variables.

Leading indicators

This refers to time series that anticipate business cycle turns.

Monitoring Methods

are those that provide early warning signals
of significant changes in established
patterns and relationships so that the
manager can assess the likely impact and
plan responses if required.

Programming

This means translating the forecasted human resource needs to
personnel objectives and goals.

Evaluation and Control

This refers to monitoring human resource action plans and
evaluating their success.

Recruitment

refers to attracting qualified persons to apply for vacant
positions in the company so that those who are best suited to serve the
company may be selected.

Sources of Applicants

○ The organization’s current employees
○ Schools
○ Newspaper advertising
○ Referrals from employees
○ Recruitment firms
○ Competitors
● For entry-level personnel, the manager will likely rely on newspaper
advertising,schools,and referrals. When recruiting managers, the reliable
sources are current employees, recruitment firms, and competitors.

Selection

- Selection refers to the act of choosing from those that are available the
individual most likely to succeed on the job.
- A requisite for effective selection is the preparation of a list indicating that
an adequate pool of candidates is available.

Ways of Determining the Qualifications of a Job Candidate

○ Application Blanks
○ References
○ Interviews
○ Testing

Application Blanks

The application blank provides information about a
person’s characteristics such as age, marital status,
address, educational background, experience, and special
interests.

References

Those written by previous employers, coworkers, teachers,
club officers, and the like about a person.

Interviews

Information may be gathered in an interview by asking a
series of relevant questions to the job candidate.

Testing

This involves an evaluation of the future behavior or
performance of an individual.

Types of Tests

● Psychological Test
● Physical Examination

Psychological Test

This is an objective, standard measure of a sample
behavior of the individual.

Physical Examination

This is a type of test given to assess the physical
health of an applicant. It is administered to assure
that the health of the applicant is adequate to meet
the job requirements.

Types of psychological test

● Aptitude test
● Performance test
● Personality test
● Interest test

Aptitude test

This is used to measure a person’s capacity or potential ability to learn.

Performance test

This test is used to measure a person’s current knowledge of a subject.

Personality test

This is used to measure personality traits as dominance, sociability, and conformity.

Interest test

This is a test used to measure a person’s interest in
various fields of work.

Induction and Orientation

• Induction
• Orientation

induction

the new employee is provided with the necessary
information about the company.

orientation

the new employee is introduced to the immediate working
environment and coworkers.

Training and Development

Training refers to the learning that is provided in order to improve
performance on the present job.

Training programs clasifications:

● Training Program for Non-managers
● Training Programs for Managers

Training Program for Non-managers

This type of training is directed to non-managers for specific increases in skill and knowledge to perform a
particular job.

Four methods of Training Program for Non-managers

○ On-the-job Training
○ Vestibule School
○ Apprenticeship Program
○ Special Courses

On-the-job Training

where the trainee is placed in an actual work situation under the direction
of his immediate supervisor, who acts as trainer.

Vestibule School

where the trainee is placed in a situation almost exactly the same as the workplace where machines, materials, and time constraints are present.

Apprenticeship Program

Where a combination of on-the-job training and experiences with
classroom instruction in particular subjects are provided to trainees.

Special Courses

are those which provide more emphasis on education rather than training.

Training Programs for Managers

The training needs of managers may be classified into four areas:
decision-making skills, interpersonal skills, job knowledge, and organizational
knowledge.

The decision-making skills of the manager may be enhanced through:

○ In-basket
○ Management games
○ Case studies

In-basket

where the trainee is provided with a set of notes, messages, telephone
calls, letters, and reports, all pertaining to a given company situation.

Management games

is a training method where trainees are placed in a simulated situation
and are required to make an on-going series of decisions about the
situation.

Case studies

method that presents actual situations in organizations and enables one
to examine successful and unsuccessful operations.

The interpersonal competence of the manager may be developed through:

○ Role Playing
○ Behavior Modeling
○ Sensitivity Training
○ Transactional Analysis

Role Playing

This is a method by which the trainees are assigned roles to play in a
given case incident.

Behavior Modeling

This method attempts to influence the trainee by showing model persons
behaving effectively in a problem situation.

Sensitivity Training

Under this method, awareness and sensitivity to behavioral patterns of
oneself and others are developed

Transactional Analysis

This is a training method intended to help individuals not only understand
themselves and others but also improve their interpersonal
communication skills.

In acquiring knowledge about the actual job the manager is currently
holding, the following methods are useful:

○ On-the-job experience
○ Coaching
○ Understudy

On-the-job experience

This method provides valuable opportunities for the trainee to
learn various skills while actually engaged in the performance of a
job.

Coaching

This method requires a senior manager to assist a lower-level
manager by teaching him the needed skills and generally
providing direction, advice, and helpful criticism.

Understudy

Under this method, a manager works as assistant to a higher-level
manager and participates in planning and other managerial
functions until he is ready to assume such position himself.

● In the attempt to increase the trainee’s knowledge of the total organization,
exposure to information and events outside of his immediate job is made.

○ Position Rotation
○ Multiple Management

Position Rotation

Manager is given assignments in a variety of departments. The
purpose is to expose him to different functions of the organization.

Multiple Management

This method is premised on the idea that junior executives must
be provided with means to prepare them for higher management
positions.

Performance Appraisal

is the measurement of employee performance

The purposes for which performance appraisal is made areas follows:

○ To influence, in a positive manner, employee performance
○ Development
○ To determine merit pay increases
○ To plan for future performance goals
○ To determine training and development needs
○ To assess the promotion potential of employees

Ways of Appraising Performance

○ Rating scale method
○ Essay method
○ Management by objectives method
○ Assessment center method
○ Checklist method
○ Work standards method
○ Ranking method
○ Critical-incident method

Rating scale method

This is the method where each trait or characteristic to be rated is
represented by a line on which the rater indicates the degree to
which the individual possesses the trait or characteristics.

Essay method

The evaluator in this method composes statements that best
describe the person evaluated.

Management by objectives method

This method is one where specific goals are set collaboratively for
the organization as a whole, for various subunits, and for each
individual member.

Assessment center method

This is the method where one is evaluated by persons other than
the immediate superior. This method is used for evaluating
managers.

Checklist method

This method is one where the evaluator checks statements on a
list that are deemed to characterize an employee’s behavior or
performance.

Work standards method

Under this method, standards are set for a realistic worker output
and later on used in evaluating the performance of non managerial
employees.

Ranking method (Ways of Appraising Performace)

This is the method where each evaluator arranges employee’s
names in rank order from the best to the poorest.

Critical-incident method

This method is one where the evaluator recalls and writes down
specific (but critical) incidents that indicate the employee’s
performance.

Employment Decisions

○ Monetary rewards
○ Promotion
○ Transfer
○ Demotion

Monetary rewards

These are given to employees whose performance is at par or
above standard requirements.

Promotion

This refers to the movement by a person into a position of higher
pay and greater responsibilities and which is given as a reward for
competence and ambition.

Transfer

This is the movement of a person to a different job at the same or
similar level of responsibility in the organization.

Demotion

This is a movement from one position to another which has less
pay or responsibility attached to it

Separation

- This is a movement from one position to another which has less pay or
responsibility attached to it
- When made voluntarily, the organization's management must find out the
real reason.
- If the presence of a defect in the organization is determined, corrective
action is necessary.
- involuntary separation (or termination) is the last option that the
management exercises when an employee’s performance is poor.
- This is usually made after training efforts fail to produce positive results.

Compensating Employees

Certain factors determine the salary or wages paid to employees.

Compensating Employees (classification)

● Performance
● The Relative Worth of Each Job
● Methods of Job Evaluation
● Labor Market Conditions and Prevailing Wage Rates
● Type of Pay System Used

Performance

- The achievement of the objectives of the organization will depend on the
individual and collective performance of its employees.
- Hence, it is only right to compensate them according to their ability to
contribute to the attainment of goals.
- When an individual’s output is better than the others, this should be
recognized and he should be provided a higher pay rate.

The Relative Worth of Each Job

- The compensation of the individual employee may also be determined
according to the relative worth of each job.
- To determine a job’s relative worth, job evaluation is undertaken. This
activity allows the organization to rank jobs and determine their hierarchy
of importance across all jobs in the organization.
- Up-to-date job descriptions and job specifications are useful tools of job
evaluation.

Job description

represents the written summary of a job as an identifiable organizational unit.

Job specification

is a written explanation of the knowledge, skills, abilities, traits, and other characteristics necessary for effective performance on a given job.

Methods of Job Evaluation

● Point method
● Comparison method
● Classification or grading method
● Ranking method

Point method

is one that requires the evaluators to quantify the value of the elements of a job.

Comparison method

is one that uses a factor-by-factor comparison and as a result, a factor comparison scale is used.

Classification or grading method

is one where jobs are grouped together in sets grades or
classification such as clerical or managerial.

Ranking method

is one where the evaluator assigns ranks to jobs from the
simplest to the most challenging.

Labor Market Conditions and Prevailing Wage Rates

- Some jobs may be similar with jobs in terms of difficulty, responsibility,and
other factors.
- Some of them, however, will be paid higher rates because of bigger
demand for them.
- Companies in dire need of certain skills will pay premium rates if these
skills are not readily available.

Type of Pay System Used

- Wages may vary because of seniority, company productivity, and
profit-sharing considerations.
- Seniority reflects loyalty to the company as well as experience.
- Improvements in company productivity makes production more efficient
and, therefore, less expensive.
- When the company makes profits, employees are sometimes provided
opportunities for sharing.

Employee Health and Safety

- A requisite to organizational productivity is the maintenance of employee health and
safety.
- Employees who are healthy and who feel safe in their places of work can contribute
immensely in the achievement of the organization's objectives.

This is made possible when management is concerned with the following:
(Employee Health and Safety)

● organizational work environment, including air, water, and noise pollution
● other health hazards like poor diet, alcohol, and drugs
● the safety of the work area
● the safety of the equipment used

To address such concerns, the following are usually undertaken: (Employee Health and Safety)

● installation of accident prevention programs
● elimination of health hazards in the work areas.

Employee Relation

- Peace and harmony in the workplace is a requisite for efficiency in production.
- This happens when employees consider relationships with the organization as
worthwhile.
- The organization must be able to manage employee relations which is sometimes made
in cooperation with unions.
- This is not to downgrade the importance of managing employee relations in a
non-unionized situation.
- Employee relations are characterized by concerns on managing and administering the
union contract (in unionized organizations), grievances, compensation, work rules, and
other issues