According to Wehrich and Koontz, “The managerial function of Staffing involves the filling and keeping filled, positions in the organisational structure”.

Process: The staffing process includes the following steps:

(i) 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.

(ii) Recruitment: The process of recruitment includes the search of the various sources of employees, and encouraging them to send their applications to the enterprise.

(iii) 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.

(iv) 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.

(v) 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.

(vi) 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.

(vii) Promotion and Career Planning: Under this step, in the process of staffing, employees get promoted to higher posts on the basis of their capability.

(viii) 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. It may be of the following two types:

(i) Direct Financial Payments: It includes wages, salaries, incentives, commissions and bonuses. It may be paid on the following two bases:

(a) Time Based Payment: Under this method, salary and wages are paid either daily, weekly, monthly or annually.

(b) Performance Based Payment: Under this method, salary or wages are paid on the basis of number of units produced by an employee.

(ii) Indirect Payments: It includes facilities like insurance, medical, vacations, etc. are provided free of cost by the employer.

Note: 1. Combined Pay Plan: A combined pay plan can also be created in the form of time based pay plus incentives for higher performance.

2. Factors Influencing Compensation Plan: The following factors must be considered while fixing compensation:

– Minimum Wage Payment Act

– Labour Laws

– Union’s Policies

– Competitor’s Policies