It refers to filling and keeping filled posts with people.

Importance:

(i) Helpful in Discovering and Obtaining Competent Personnel : Under staffing latest techniques are used for recruiting and selecting the employees. As a result, it becomes possible to search for and to select able employees for different posts. Under the recruitment process, search for employees is conducted and through selection they are selected.

(ii) Helpful in Better Performance: Through the medium of staffing, right people are posted at right places. Thus, suitable people are selected, keeping in mind the importance of organisational posts. As a result, it increases the efficiency and effectiveness of employees.

(iii) Helpful in Continuous Survival and Growth of the Enterprise: Every enterprise aspires for its continuous survival and growth. This is possible only when it has human asset of supreme quality. This, aspiration of an enterprise can be fulfilled through staffing.

(iv) Helpful in Optimum utilization of the Human Resource: Under staffing all the activities related to human resource are performed systematically. By doing this the situation of overmanning never arises. As a result, optimum utilization of employees takes place and subsequently, labour cost is reduced.

(v) Helpful in Improving Job Satisfaction and Morale of Employees: Under staffing, by studying human behaviour, their preference for the type of environment, promotion policy, training and remuneration policy is known for. The effort is made to provide them with all the desired facilities. Special care is taken for, that in no way the pay package of employees is reduced. In this situation, they get total job satisfaction and their morale is boosted.