Notes Chapter 6 Staffing

Class 12 students can refer to Chapter 6 Staffing notes given below which is an important chapter in the class 12 Business Studies book. These notes and important questions and answers have been prepared based on the latest CBSE and NCERT syllabus and books issued for the current academic year. Our team of Business Studies teachers has prepared these notes for class 12 Business Studies for the benefit of students so that you can read these revision notes and understand each topic carefully.

Staffing Notes Class 12 Business Studies

Refer to the notes and important questions given below for Staffing which is really useful and has been recommended by Class 12 Business Studies teachers. Understanding the concepts in detail and then solving questions by yourself will help you to learn all topics given in your NCERT Books.

Notes Chapter 6 Staffing


Staffing is concerned with the recruitment, selection, placement, training, growth and development of all the members of the organization
“Placing the right person on the right job at the right time is called staffing”

Importance of Staffing

1.Competent personnel: Staffing helps to find out competent persons for various jobs.
2.Higher performance: Higher performance by placing the right person on the right job.
3.Survival and growth: Survival and growth of the business by providing proper training and development to the future managers
4.Optimum utilisation of human resources: It is possible by ensuring the right number of persons on each job positions
5.Job satisfaction: Job satisfaction and morale of employees can be improved through proper assessment and remuneration policies

Features of Staffing

1.Important managerial function: All other managerial functions such as planning, organising etc. depend on manpower, hence itis very important
2.Pervasive: Managers at all levels and in all organisations perform staffing function
3.Continuous: It continues throughout the life of the organisation
4.Placement: Placing the right person on the right job is the motto of staffing

Steps in Staffing Process

1. Estimating manpower requirement: Planning the number of employees required and their qualifications
2. Recruitment: It is a process of searching for prospective employees and stimulating them to apply for jobs in the organisation
3. Selection: It is a process of choosing and appointing the right persons for various jobs
4. Placement and orientation: These refer to the process of familiarizing the selected candidates with their work units work groups, jobs and the organization and placing the right one on the right job.
5. Training and development: Training intended to improve knowledge, skills and attitudes of the employees regularly so as to enable them to perform better
6.Performanceappraisal: It is the periodic assessment of the performance of the employees to ensure that whether they are in conformity with standards
7.Promotion: It means movement of an employee to a higher position.
8.Compensation: It involves the determination of wages or salary and other benefits to the employees on the basis of nature of job, risk factors, responsibility, qualification, experience etc.

Recruitment: Recruitment is the process of searching for perspective employees and stimulating them to apply for jobs in the organisation.

1 Internal sources of recruitment
2 External sources of recruitment

Internal Sources of Recruitment: Under the source of recruitment , the vacant job positions are filled by including the existing employee of the organisation.


1. it is economical
2. it motivates the existing employee
3. less amount is spent on training
4. through transfer of employee


1. no fresh or new ideas will come in the organising
2. there will be limited choice
3. not suitable for new organisation
4. frequent transfer may reduce the productive of employee


When the candidates from outside the organisation are invited to fill the vacant job position then it is known as external recruitment.

External Sources of Recruitment
1. Direct recruitment
2. Casual callers from waiting list
3. Advertisement
4. Employment Exchanges
5. Placement Agencies and Personnel Consultants
6. Campus interviews
7. Recommendations of Present Employees
8. Labour Contractors
9. Advertising on Television
10. Web Publishing


• 1 fresh talent
• 2 wider choice
• 3 latest technological knowledge
• 4 Competitive spirit

• 1 the morale of existing employee goes down or falls
• 2 lengthy process
• 3 the new employee may not adjust in the rules and regulation
• 4 it is expensive as to invite the outsider to apply for a job .

Differences: Internal and External Sources

Internal Source                                                     External Sources
Quick Process                                                         Lengthy Process
Less expensive                                                      Costly
Motivating staff members                                      Existing workers dissatisfied
Limited choice                                                        Wide choice of candidates

Selection begins where recruitment ends It is the process of identifying the most suitable and promising candidates from the list of recruited persons.

Selection Process

1.Preliminary screening: A careful screening of applications is done bya screening committee to eliminate the under qualified candidates
2.Selection Test: Tests are conducted to know the level of ability, knowledge, interest, aptitude etc. of a particular candidate.
a. Intelligence test
b. Trade test
c. Aptitude test
d. Interest test
e. Personality test
3.Interview: Detailed interviews are undertaken to seek more information from the candidate
4.Checking References: Reference is a source from which useful information on the candidate can besought
5.Selection decision: Final decision is made by the concerned manager based on the performance of the candidates in all the above steps
6.Medical Examination: The physical fitness of the candidates is checked through medical examination
7.Job offer: After a candidate has cleared all the above hurdles will be appointed through an appointment letter to join the organisation before a specific date
8.Contract of employment: After the appointment is accepted by the candidate, certain documents are to be executed by the employer and the candidate, in which all the terms and conditions regarding the employment will be specified such as job title, duties and responsibilities, pay scale, allowances, work rules, termination method etc.

Training & Development:

“Training is the art of increasing the knowledge and skill of an employee for doing a particular job.”
Its purpose is to enable them to do their jobs better.


It involves the growth of an employee in all respects, like personality development, motivation for growth, career planning etc.
Thus employee development is more future oriented and concerned with education than employee training


1. Reduced learning time
2. better performance
3. attitude formation
4. aids in or help in solving operational problems
5. managing manpower need
6. helps to adapt changes



Training Methods

1.On the Job Training
2.Off the Job Training

On the Job Training: Under this method training is imparted among the employees while they are engaged in their work. Here the employees learn by doing.
It includes job rotation, apprenticeship, coaching, committee assignments etc.

a. ApprenticeshipProgrammes: Under this, both knowledge and skills in doing a job are imparted. Here the trainee is put under the supervision of an experienced person in this field .
This method is more suitable in electrical work, mining etc.
b. Internship Training: A vocational institute enters into an arrangement with a business enterprise to provide practical knowledge to its students It is intended for providing practical experience to the students in their fields
Eg: MBA students undertake project work in business enterprises, engineering students to industrial enterprises, Medical students to hospitalsetc.

Off the Job Training: This is concerned with imparting training to employees outside the actual work place .The employees can concentrate on training alone since they are away from the workplace.
Eg: Class room lectures, conferences, case study methods, films, TV shows, etc.
Vestibule Training: In this case an actual work situation is created in a class room. Employees use the same dummy materials and equipment for training.

Notes Chapter 6 Staffing

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