• Staffing is the process of filling positions/posts in the organization with adequate and qualified personnel .
  • Staffing is the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness


According to McFarland,
“Staffing is the function by which managers build an organization through the recruitment, selection, and development of individuals as capable employees.”
According to Koontz, O’Donnell and Heinz Weihrich,
  “The management function of staffing is defined as filling position in the organization structure through identifying workforce requirements, inventorying the people available, recruitment, selection, placement, promotion, appraisal, compensation, and training of needed people.”

Features of staffing function

  • All pervasive function of management.
  • Dynamic function.
  • vast scope.

Main Objective Of Staffing

  • To understand all function of in an organization.
  • To understand manpower planning so that people are available at right time and at a right place.
  • To understand issues related to job analysis and to overcome the problem.

Importance of Staffing Function

  • Optimum Use of Resource.
  • Enhances Corporate Image.
  • Job Satisfaction.

Steps involved in Staffing Process

Steps involved in the process of staffing of an organization are: 1. Estimating Manpower Requirements 2. Recruitment 3. Selection 4. Placement and orientation 5. Training and Development 6. Performance Appraisal 7. Promotion 8. Compensation 9. Separation!
  • Estimating Manpower Requirements:
            Before starting the work, the manpower requirement of the organisation is assessed. Here, two aspects need to be taken into account while determining the requirement of manpower i.e. Type of Employees & Number of Employees. Also the job requirement, desired qualification, relationship between different jobs etc. is clearly drawn out.
            Manpower planning involves two techniques in estimation viz. (a) Workload analysis and (b) Workforce analysis.
(a) Workload analysis would enable an assessment of the number of an types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives. Workload analysis ensures that there is no burden and wastage of resources and work is completed on time.
(b) Workforce analysis would reveal the number and type available to fact such an exercise would reveal whether organisation is understaffed, overstaffed or optimally staffed. Workforce analysis is for the existing employees. It sees manpower employed and number of manpower to be employed.
  • Recruitment:
            Recruitment is the process of searching and motivating a large number of prospective employees for a particular job in an organisation.
It includes the following activities:
(i) Determining the various sources of supply.
(ii) Evaluation of the validity of these sources.
(iii) Selecting the most suitable source or sources.
(iv) Inviting applications from the candidates for the vacancies.
  • Selection:
            Under the process of selection, better applicants are selected out of a large number of them. It must be kept in mind that the ability of the applicant & the nature of work must match. It means that right man should be selected for the right job. This will lead to better performance on all fronts i.e. quality, quantity, time, cost etc.
It includes the following steps:
1. Preliminary Screening
2. Selection Test
3. Employment interview
4. Reference & Background checks
5. Selection Decision
6. Medical Examination
7. Job Offer
8. Contract of Employment
  • Placement and orientation:
            Placement involves putting the selected man at the right place considering his aptitude and ability. It is the actual posting of an employee to a particular job for which he/she has been chosen.
            Orientation is also known as induction. It means introducing the newly selected employee i.e. to various facets of the company his job, other jobs, nature of products, policies, rules and existing employees etc. It aims at inducting new employees into the organisation smoothly
  • Training and Development:
            The term training implies a systematic procedure of imparting knowledge and skills for a specific job. It benefits both the enterprise & the employee. Training increases the skills and abilities of employees to perform specific jobs.
            Training can be given for improving the current job or to prepare the employees for some intended jobs. The enterprise also gets the advantage of training in the form of reduction in the production cost, best usage of tools & machine and improvement in the quality etc.
  • Performance Appraisal:
            At this step, the capability of the employee is judged and for that, his actual work performance is compared with the work assigned to him. If the results are unfavorable, he is again given training and after that also if results are again unfavorable, the employee is put on some other work.
  • Promotion:
            It is a process through which employees get better salary, status, position, more responsibility etc. In this step, employees earn their promotion to higher posts on the basis of their performance.
  • Compensation:
            The organization should have fair salary or wage structure and should give incentives to those who deserve it. This means that jobs must be evaluated and ranked in a manner that contributes to that contribution.
  • Separation:
            It is the last step in the process of staffing. It means separating the employees from their job. This take place in four ways i.e. through retirement, termination, retrenchment or death.

Knowledge worker

A knowledge worker is anyone who works for a living at the tasks of developing or using knowledge. For example, a knowledge worker might be someone who works at any of the tasks of planning, acquiring, searching, analyzing, organizing, storing, programming, distributing, marketing, or otherwise contributing to the transformation and commerce of information and those (often the same people) who work at using the knowledge so produced. A term first used by Peter Drucker in his 1959 book, Landmarks of Tomorrow, the knowledge worker includes those in the information technology fields, such as programmers, systems analysts, technical writers, academic professionals, researchers, and so forth. The term is also frequently used to include people outside of information technology, such as lawyers, teachers, scientists of all kinds, and also students of all kinds.


Every decision taken must be properly implemented, otherwise it is of no use. Direction is required for effective implementation of a decision. Every manager in an organization gives direction to his subordinates as a supervisor and every manager receives direction as subordinate from his superior.


Direction is a managerial function performed by all the managers at all levels of the organisation. Direction is a continuous function of every manager. Direction is a function of management which is related with instructing, guiding and inspiring human factor in the organisation to achieve the objectives of the organisation. The three important elements in direction are communication, leadership and supervision and motivation. Direction is an action initiating function of management.


According to Koontz and O’Donnel :
    “Directing is a complex function that includes all those activities which are designed to encourage subordinates to work effectively and efficiently in both the short and long-run.”


  • Initiates action
  • Superior – Subordinate Relationship
  • Continuous Function
  • Initiates at the Top Level
  • Kills two birds

Steps in direction

  • Setting and Defining the Objectives
  • Organizing the Efforts
  • Measuring the work
  • Developing the people


  • Initiates Action
  • Integrates Employees Efforts
  • Gets maximum out of individuals
  • Facilitates Organisation Changes
  • Provides Stability and Balance in the organisation



Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions


According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.”
Controlling has got two basic purposes
  • It facilitates co-ordination
  • It helps in planning

Features of Controlling Function

Following are the characteristics of controlling function of management-

  • Controlling is an end function- A function which comes once the performances are made in confirmities with plans.
  • Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns.
  • Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
  • Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible.
  • Controlling is related with planning- Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.

Process of Controlling

Controlling as a management function involves following steps:
  • Establishment of standards- Standards are the plans or the targets which have to be achieved in the course of business function. They can also be called as the criterions for judging the performance. Standards generally are classified into two-
            Measurable or tangible – Those standards which can be measured and expressed are called as measurable standards. They can be in form of cost, output, expenditure, time, profit, etc.
Non-measurable or intangible- There are standards which cannot be measured monetarily. For example- performance of a manager, deviation of workers, their attitudes towards a concern. These are called as intangible standards.
Controlling becomes easy through establishment of these standards because controlling is exercised on the basis of these standards.
  • Measurement of performance- The second major step in controlling is to measure the performance. Finding out deviations becomes easy through measuring the actual performance. Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as it can be expressed in units, cost, money terms, etc. Quantitative measurement becomes difficult when performance of manager has to be measured. Performance of a manager cannot be measured in quantities. It can be measured only by-
                  a.Attitude of the workers,
                  b.Their morale to work,
                  c.The development in the attitudes regarding the physical environment, and
                  d.Their communication with the superiors.
           It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports.
  • Comparison of actual and standard performance- Comparison of actual performance with the planned targets is very important. Deviation can be defined as the gap between actual performance and the planned targets. The manager has to find out two things here- extent of deviation and cause of deviation. Extent of deviation means that the manager has to find out whether the deviation is positive or negative or whether the actual performance is in conformity with the planned performance. The managers have to exercise control by exception. He has to find out those deviations which are critical and important for business. Minor deviations have to be ignored. Major deviations like replacement of machinery, appointment of workers, quality of raw material, rate of profits, etc. should be looked upon consciously. Therefore it is said, “ If a manager controls everything, he ends up controlling nothing.” For example, if stationery charges increase by a minor 5 to 10%, it can be called as a minor deviation. On the other hand, if monthly production decreases continuously, it is called as major deviation.
Once the deviation is identified, a manager has to think about various cause which has led to deviation. The causes can be-
                a.Erroneous planning,
                b.Co-ordination loosens,
                c.Implementation of plans is defective, and
                d.Supervision and communication is ineffective, etc.
  • Taking remedial actions- Once the causes and extent of deviations are known, the manager has to detect those errors and take remedial measures for it. There are two alternatives here-
                a.Taking corrective measures for deviations which have occurred; and
                b.After taking the corrective measures, if the actual performance is not in conformity with plans, the manager can revise the targets. It is here the controlling process comes to an end. Follow up is an important step because it is only through taking corrective measures, a manager can exercise controlling.

Control techniques

Budget and Budgetary control

  • Budget
Formal financial expression of a manager’s plans.
  • Sales Budget
A planning document that shows the estimated number of units to be sold in each period (usually per month) or the expected sales activity to be achieved and the sales revenue expected from the sales.
  • Operating Budget
Shows the expected sales and/or expenses for each of the company’s departments for the planning period in question.
  • Cash budget
  • Production budget
  • Materials purchase/usage budget
  • Human resource budget
Financial Ratios
  • Gross profit margin
  • Profit margin
  • Return on equity
  • Revenue per employee
Non budgetary techniques
  • Qualitative control techniques
  • Quantitative control techniques
Qualitative control techniques
  • External audit
  • Internal audit
  • Management audit
  • Personal observation
  • Performance appraisal
Quantitative control techniques
  • Gantt chart
  • PERT
  • Break Even Analysis
  • Economic order Quantity
Gantt chart
  • Graphically depicts the planned and actual progress of work over the period of time encompassed by a project
  • Useful for scheduling one time activity such as construction of building etc
  • Also called as time and activity charts
  • Valuable and widely used control chart
Management by Exception
  • Principle of Exception
  • Employees should be left to pursue the standards set by management, and only significant deviations from the standard should be brought to a manager’s attention.
Balanced score card
  • Evaluate organizational performance from more than just a financial perspective
  • Looks at four areas that contribute to a company’s performance
  • Finance, Customer, Internal process and People/innovation
  • Managers develop goals in these areas and then measure whether goals are being met
Balanced score card
  • Evaluate organizational performance from more than just a financial perspective
  • Looks at four areas that contribute to a company’s performance
  • Finance, Customer, Internal process and People/innovation
  • Managers develop goals in these areas and then measure whether goals are being met
  • Search for best practices among competitors or non competitors that lead to their superior performance
  • These benchmarks will be the standards of excellence against which to measure and compare
  • Internal bench marking can also be done


The ability to influence a group toward the achievement of goals.

Leadership Versus Management

Leader Qualities

  • Visionary
  • Passionate
  • Creative
  • Flexible
  • Inspiring
  • Courageous
  • Experimental
  • Initiates changes
  • Personal power

Manager Qualities

  • Rational
  • Consulting
  • Problem solving
  • Tough minded
  • Analytical
  • Authoritative
  • Stabilizing
  • Position power


  • what needs to be done
  • what is right for the enterprise
  • action plans
  • responsibility for decisions
  • responsibilty of communicating
  • focused on opportunities rather than problem
  • productive meetings
  • thought and said “we” rather than “i”