Unit 5: Sta ng

Lesson 5.1
Nature of Sta ng
Contents
Introduction 1
Learning Objectives 2
Let’s Connect 2
Discover 4
Job Analysis 5
Recruitment and Selection 5
Training and Development 7
Employee Training vs. Employee Development 7
The Need for Employee Training 7
Management Employee Development Approaches 8
Performance Evaluation/Appraisal 8
Methods of Employee Evaluation 9
Compensation/Wages 9
Bases of Compensation 10
Employee Benefits 10
Employee Relations 11
Types of Employees 11
Importance of Employee Relations 12
Barriers to Employee Relations 12
Overcoming Barriers 12
Employee Movement 13
Promotion 13
Employee Transfer 14
Demotion 14
Separation and Termination 14
Rewards Systems 16
Types of Rewards 16
Wrap-Up 18
Try This! 19
Challenge Yourself 20
Bibliography 23
Unit 5: Management Functions: Sta ng

Lesson 5.1

Nature of Sta ng

Introduction
As an organization carries out its plans, it goes from answering the question “What should
we do?” to “What needs to be done?”. Once the answers to those questions are established,
managers then have to answer the question, “Who’s going to do each job?”. This can be
answered by one of the functions of management called staffing. Staffing is the process of
filling the job positions needed by the organization in order to achieve its goals and
objectives. But what makes staffing so important?

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To grow, thrive, and succeed in today’s competitive environment, companies must deal with
diverse changes. Traditionally, the concept of value has been considered a function of
finance, accounting, and marketing. Nowadays, our definition of value includes not only
profits but also employee growth, development, and satisfaction. An organization is made
up of people, and its main goal is to provide goods and services. These people are vital to an
effective organization, which is why the proper selection, development, utilization,
rewarding, and maintaining of capable people is important. This can only be achieved
through effective staffing.

Learning Objectives DepEd Learning Competency

At the end of this lesson, you should be able to discuss
At the end of this lesson, you should be the nature of staffing (ABM_AOM11-IIa-b20).
able to do the following:
● Explain the nature of staffing.

● Understand the purpose of

staffing.
● Discuss the phases of staffing.

Let’s Connect

Who’s Job is This? 10 minutes

In this activity, your teacher will be enumerating household chores. You will decide who
should be doing them in your house.

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Instructions
1. Your teacher will be giving different household chores such as, but not limited to, the
following:
● Washing the dishes ● Wiping the windows
● Doing the laundry ● Feeding the pets
● Cleaning the garage
2. Your job is to assign each chore to a member of your household.
3. Raise your hand to be recognized by your teacher and share your answer with the
class.
4. Note that the person you choose for each job is not limited to your immediate family.
Other individuals who live with you can be included.
5. Once the activity is done, answer the guide questions below.

Guide Questions
1. What did you consider when deciding which individual will be assigned to each
household chore?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

2. Do you think they are capable of doing the job efficiently? Why or why not?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

3. Based on your task assignment for each individual, what is the most important factor
in considering an individual for a given task?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

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Discover
Staffing is the filling of all organizational job positions through identifying job position
vacancies and workforce requirements.

It includes, but is not limited to, the following:

● checking the internal environment of an organization for the available human
resources
● recruiting, selecting, placing, promoting, and evaluating possible employees
● career path planning, employee development and training
● compensating and providing benefits to employees

How can an effective and e cient sta ng process

benefit a firm?

Fig. 1. Phases of Staffing

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Job Analysis
Before we recruit and select potential employees that will add value to the organization, we
must carefully make a systematic plan. Reviewing human resource requirements and
determining what the company needs are both vital in determining the total manpower
component needed to execute any planned strategic activities.

In this phase, our responsibility is to determine the context of the jobs to be filled, their
human requirements (e.g., human qualifications, skills needed, and knowledge that the
employee should possess), what tasks need to be performed, and how they are carried out.

Recruitment and Selection

Recruitment involves activities related to the evaluation of a pool of applicants for jobs in
the organization. Selection is making the decision of whom to hire from the pool of qualified
applicants.

How does management conduct the recruitment and selection process? The process map
below will show you how managers practice this in reality.

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Fig. 2. Recruitment and selection process

Check Your Progress

As a hiring manager, what characteristics should employees that
deserve to be hired in your organization have?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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Training and Development

The practice of training can be traced to the Stone Age when people started transferring
knowledge to others through signs and deeds. Afterward, vocational training started during
the Industrial Revolution. Now, training and development are increasingly recognized as the
most important key to gaining knowledge and skill in many areas. Training has to be
continuously offered to enable employees to stay skilled, effective, and efficient.

Employee Training vs. Employee Development

Training refers to the process where employees of the organization acquire knowledge and
capabilities, usually from senior employees or seminars, to use in aiding the achievement of
the organizational goals. It is an effort of the company to facilitate learning job-related
competencies. These competencies include not just the knowledge and skills but also the
behavior that is critical for successful job performance.

Employee development refers to the formal education, relationships, job experiences, and
assessments of the employees’ personalities and abilities. Ideally, these are cultivated by
potential employees in order to prepare themselves for the future. Development goes
beyond the requirements of the current job. It helps the employees prepare for jobs beyond
the ones they currently have and enables them to be prepared for changes in their current
jobs due to changes in technology, work design, and customers, or even new products and
types of markets.

The Need for Employee Training

The need for training is usually indicated in the following instances:
● When required skills are not possessed by anyone in the workforce
● When an employee’s performance is below standard but has the potential to
improve
● When employee morale is low
● When the productivity of employees is low
● When there is high employee attrition or turnover rate
● When the rate of absenteeism, tardiness, or accident is high

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● When supervision is lax

● When new technology is introduced

Management Employee Development Approaches

In-House (company site):
1. Management Coaching (Supervisor coaches the employees)
2. Committee Assignments (Assigning employees to important company
committees)
3. Job Rotation (Shifting employees from one job to another)
4. Assistant-to-the Position (Assigning an employee as an assistant to the
manager)
5. Job Enlargement (Adding challenges or new responsibilities to employees)
6. Mentoring (Making employees learn knowledge and skills from experienced
organization members, which are agreed upon by both parties)
Off-Site (outside development interventions):
1. Formal Education (Company sends employees to seminars, workshops, and
training programs)
2. Team Building (Employees are organized into teams and solve common
problems related to team relationships)
3. Case Studies (Classroom type of training technique wherein employees are
tasked to use management concepts to solve problems)
4. Role-playing (A developmental technique that will require a trainee to assume
a role in a given situation and act out the behavior associated with it)
5. Simulations (Involves business games developed by Human Resource Experts
that requires employees to analyze situations and decide on the best course
of action based on the available data)

Performance Evaluation/Appraisal
It is said by most experienced managers that performance appraisal or evaluation is one of
the major keys to effective management, as it is the basis for determining who should be
promoted to a higher position. It is a process of evaluating an employee in order to arrive at
an objective managerial decision.

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The methods of evaluating workers have undergone developments in order to adapt to new
legal employment requirements and technical changes. Different performance appraisal
methods are used depending on the information an evaluator aims to discern.

Methods of Employee Evaluation

Some of these methods used by managers today in evaluating their subordinates are the
following:
● The trait method is designed to find out if the employee possesses important work
characteristics, such as conscientiousness, creativity, emotional stability, and others.
● Graphic rating is accomplished by evaluating employee performance based on a
scale of measurement. This requires the evaluator to indicate a specific degree by
which an employee possesses/attains a particular characteristic/organization
requirement.
● The forced-choice method requires the evaluator to choose from two statements
purposely designed to distinguish between positive or negative performances. For
example, “works seriously – works fast,” “shows leadership – has initiative.”
● Behaviorally anchored rating scale (BARS) includes 5 to 10 vertical scales, one for
each important strategy for doing the job and numbered according to importance.
● Behavior observation scale (BOS) measures the frequency of observed behavior.

Compensation/Wages
Compensation/wages and performance evaluation/appraisal are related to each other
because an employee’s performance, whether excellent or poor, determines the
compensation given to him or her. Compensation is given after considering other internal
and external factors, such as the difficulty level of the job, the compensation strategy of the
organization, the conditions of the labor market, the average cost of living, and area wage
rates.

Compensation can be in the form of direct compensation, which includes worker’s salaries,
incentive pays, bonuses, and commissions. It can also be in the form of indirect
compensation, which includes benefits given by employers aside from financial
remunerations. Some examples of indirect compensation include travel, educational

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programs, health benefits, and other fringe benefits. It also includes nonfinancial
compensation, such as recognition programs, being assigned to do rewarding jobs, or
enjoying management support, an ideal work environment, and convenient work hours.

Bases of Compensation
Employees may be compensated on the following bases:

Table 1. Bases of compensation and how it is computed

Compensation Bases How is it computed?

Piecework basis Pay is computed according to the number of units produced.

Hourly basis Pay is computed according to the number of work hours

rendered.

Daily basis Pay is computed according to the number of workdays rendered.

Weekly basis Pay is computed according to the number of workweeks

rendered.

Monthly basis Pay is computed according to the number of work months

rendered.

Employee Benefits
Some organizations provide employee benefits that are not covered by regular salaries and
wages. This refers to benefits that contribute to the improvement of the conditions of work,
and that motivates the employees to perform well. These benefits are additional
compensations that the employee regularly receives at a stipulated interval and as
mandated in the company policies and guidelines.

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Table 2. Classification of benefits and examples

Classification of Description Examples

Benefits

Statutory Benefits These are benefits 13th-month pay, 5-day incentive leave,
mandated by law. birthday leave, maternity leave, paternity
leave, PAG-IBIG Fund, Medicare fund,
social security benefits, cost of living
allowance

Company Benefits These are benefits Vacation leave with pay, sick leave with
granted by the pay, bereavement leave, hospitalization
company, outside plan, insurance plan, Christmas and
those mandated by mid-year bonus, educational plan, legal
law. aid, car plan, company service and
transportation, emergency leave,
profit-sharing, recreational and physical
fitness facilities, housing equity assistance

Employee Relations
In an organization, efforts to manage relationships between employers and employees have
to be observed. It is important for organizations to have good employee relations programs
that provide fair and consistent treatment to all employees so they will be committed to
their jobs, stay loyal to the company, and be motivated to perform as best as they can.

Types of Employees
There are different types of employees in an organization, and they are as follows:
1. Engaged employees are motivated people who work with passion and are able to
establish a deep connection with their company. This level of engagement often
results in innovation, which reflects on the organizational performance of employees
within a company.

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2. Not engaged employees are those who accomplish tasks for the sake of compliance
but are unable or unmotivated to demonstrate energetic or passionate behavior at
work.
3. Actively disengaged employees are those who are unhappy with their jobs and
subsequently undermine what their engaged co-workers accomplish.

Importance of Employee Relations

● Provides counsel and advice to supervisors and employees regarding
employment-related inquiries
● Provides confidential consultation
● Advises employees regarding their employment rights
● Facilitates dialogue on employee/employer issues

Barriers to Employee Relations

● Asocial/avoidant personality, refusal to share more about oneself to co-employees,
and being a loner
● Lack of trust in others
● Selfish attitude or having too many self-serving motives
● Lack of good self-esteem
● Not a team player
● Being conceited
● Cultural/subcultural differences
● Lack of cooperation
● Communication problems, such as the refusal to listen to what others seek to
communicate
● Lack of concern for others’ welfare

Overcoming Barriers
● Develop a healthy personality to overcome negative attitudes and behavior.
● Find time to socialize with coworkers.
● Develop good communication skills and be open to others’ opinions.
● Minimize cultural/subcultural tension.

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Check Your Progress

How can you maintain a good healthy relationship with your
employees?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Employee Movement
Upon entering an organization, every employee has a goal and often ends up changing his
or her employment status. In most cases, in the initial stages of his or her employment, the
employee starts as a temporary employee or part-timer, then moves up to probationary
employee upon meeting the requirements of the position where he or she is assigned. If he
or she performs well as a probationary employee, he or she will move up the ladder and
become a permanent employee with greater benefits and the possibility of promotion or
transfer, as he or she stays longer in the organization.

Promotion
Promotion is the movement of an employee from a lower level to a higher level in the
organizational hierarchy. A higher level job involves more duties and responsibilities.
Usually, it carries with it higher pay, higher status, better privileges, and better working
conditions.

An employee can be promoted if:

● He or she performed well, and there is an opportunity for a higher position
available
● He or she improved academically and professionally, making him or her
prepared for new challenges
● He or she is proficient in what they do
● He or she contributed a lot to the organization to the extent that the
employer decided to recognize his or her work.

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Employee Transfer
Employee transfer is the movement of an employee in an organization from one job to
another of equivalent rank or position at the same pay class. This may cause some
changes in the duties and responsibilities of the employee being transferred. Sometimes it
involves an increase in pay. The transferring of employees is not limited from one
department to another. It may also be assigning employees from the mother company to a
subsidiary or a sister organization.

There are different kinds of employee transfer:

1. Temporary Transfer means having an employee substitute for an absent
employee for a particular period of time. This can also refer to giving an employee a
temporary position to have them learn other duties and responsibilities in
preparation for a promotion.
2. Permanent Transfer means to fill a vacant position in another unit or department
requiring the skills and capabilities of the employee being transferred.

Demotion
Demotion is the movement of an employee from a higher level to a lower level in the
organizational ladder/hierarchy. It is one of the most difficult decisions the management of
an organization has to make as it creates tension and anxiety.

Possible reasons for demoting an employee:

● A need to reduce the manpower budget
● The inability of the employee to meet the requirements of their current position
● The failure of the employee to meet technical changes in the job
● The employee’s commitment to an infraction of the company’s rules and
regulations, but not to the extent that termination is needed.

Separation and Termination

The termination of the relationship between the employee and employer is called
separation. Termination can be caused by the resignation of the employee or a unilateral
action of the management. Resignation is a voluntary separation of the employee from

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the organization, while the unilateral action of the management to terminate the
employment or the relationship is called lay-off or discharge.

Common reasons for employee resignation:

● Better job opportunities in other companies or outside of the organization
● The desire for higher wages and better working conditions
● Misunderstandings between the employee and his or her superior or co-worker(s).
● Geographical reasons, such as travel distance from home or change of residence.
● Change in marital or parental status
● Changes in an employee’s schedule

Types of Lay-off:
1. Temporary Lay-off
The temporary removal of an employee from his or her position, with the possibility
of rehire. One possible reason for temporary lay-off may be a lack of materials or
orders that would require the services of the employee.
2. Permanent Lay-off
This refers to the total severance of the employment relationship.

Check Your Progress

As a future manager, how can you encourage your well-performing
subordinates to stay in the company longer?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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Rewards Systems
Organizations offer competitive rewards systems to attract knowledgeable and skilled
people and to motivate/satisfy workers currently employed in their organization.
Furthermore, fair rewards promote personal growth and development and inhibit employee
turnover.

Types of Rewards
Most managements offer different types of rewards, such as the following:
1. Monetary Rewards are most commonly given in the form of salary/pay increases,
bonuses, or increases in benefits such as pension or health care premiums. These
rewards can be divided into two categories: direct and indirect compensation. These
contribute to the financial betterment of the employees.
a. Direct compensation is the basic type of payment an employee receives. It
includes an employee’s base pay or salary and other government-mandated
benefits.
b. Indirect compensation includes increases to benefits such as dental and eye
care plans. It can also include paid leaves in the form of vacation leaves or sick
leaves with pay. These include days off for training, sabbatical leaves,
bereavement leaves, or childcare and eldercare leaves. There are also some
organizations that offer services as part of an indirect compensation package.
These include on-site childcare, an eldercare program, an on-site cafeteria or
free lunch canteen, a game and videoke room or gym/wellness space, and
counseling services for employees and their families. Note that indirect
compensation should be valuable to employees.

2. Non-monetary rewards are costs for the organization but do not directly improve
the financial position of the employees. Making sure that the employees have
everything they need to fully execute the tasks assigned to them. It may include a
great office location, choice of furnishings, interior layout, or special parking place
can all be non-monetary rewards. Employees may be in the dark regarding full
details of pay and other financial benefits of their coworkers, but non-monetary
rewards are often visible and can create perceptions of inequity in an organization. In

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some cases, this may be the purpose of managers who want employees to strive
more to achieve the best rewards, but it often unintentionally encourages feelings of
inequity.

Check Your Progress

Aside from giving them rewards, how do managers motivate their
employees?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

In Philippine Context
In the Philippines, the benefits that employees receive from the company where they
choose to belong is dependent on the type of their employment. There are six common
employee classifications in the Philippines, namely probationary employment, regular
employment, fixed-term or contractual employment, casual employment, project
employment, and seasonal employment. These classifications are not all-inclusive.
There are still other employee classifications in the Philippines depending on the criteria
of classification, such as level of responsibility, functions, or entitlement. These can be
separated into managerial, supervisory, and rank-and-file employees. When it comes to
employee protection and other employee-related rights and laws, the Labor Code of the
Philippines is the general labor law that regulates employment relationships in the
Philippines.

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Wrap-Up
_____________________________________________________________________________________________
● Staffing is the filling of all organizational job positions through identifying job
position vacancies and workforce requirements.
● It includes checking the internal environment of an organization for the available
human resources; recruiting, selecting, placing, promoting, and evaluating
possible employees; career path planning, employee development and training;
and compensating and providing benefits to employees.
● The Phases of Staffing are the following:
1. Recruit and carefully select potential employees of the organization
2. Train and develop hired employees
3. Give employees compensation and benefits
4. Create healthy and good relationships with the employees
5. Aid the employees’ movement in the organization
6. Evaluate employees’ performances
7. Reward employees based on their performance in the organization
_____________________________________________________________________________________________

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Try This!
A. True or False. Write true if the statement is correct. Otherwise, write false.

________________ 1. Staffing is filling organizational job positions.

________________ 2. Staffing is only focused on activities related to the recruitment and

selection of applicants.

________________ 3. Employee development refers to the formal education,

relationships, job experiences, and assessments of the employees’
personalities and abilities that are cultivated by potential
employees in order to prepare themselves for the future.

________________ 4. Compensation based on the number of units produced is referred

to as “daily basis.”

________________ 5. Training and development have the same functions.

________________ 6. Employee benefits are different from compensation and wages.

________________ 7. Staffing is not necessary for creating good relationships between

employers and employees.

________________ 8. A rewards system is just an additional cost for an organization,

which is why it is discouraged or minimized.

________________ 9. Promotion is the movement of employees from lower to higher

levels of the organizational hierarchy.

________________ 10. Compensation only comes in the form of direct compensation,

which includes worker’s salaries, incentive pays, bonuses, and
commissions.

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B. Identification. Identify the term or phrase being asked in each item.

________________ 1. It involves activities related to the development of a pool of

applicants for jobs in the organization.

________________ 2. This is a tool that organizations use to attract knowledgeable and

skilled people and to keep them motivated/satisfied once they
are employed in their firm.

________________ 3. Benefits granted by the company outside those mandated by law.

________________ 4. Pay is computed according to the number of workdays rendered.

________________ 5. It refers to the process where employees of the organization

acquire knowledge and capabilities to aid in the achievement of
the organizational goals.

Challenge Yourself
Short-Response Essay. The following are different questions and situations that involve the
use of staffing. Write your answer on the space provided. The rubric at the end of this
section will be used to grade your answers.

1. You are assigned to be the store manager of a fast-food venue and you have noticed
that the crew are obviously demotivated when performing their tasks. The rate of
absenteeism and workplace accidents in the store is high. As the manager, how will
you address this problem?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

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2. “Hire an attitude, not just experience and qualification.” With this in mind, how will
you select the potential employees of your company?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

3. The company is facing a recession due to the pandemic crisis, and it has to minimize
its operation costs to survive. If you are a manager who is part of the
decision-making process, what can you propose to the board of directors to provide
a resolution?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

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Suggested Rubric for Grading

The rubric below is a suggested one. Your teacher may modify the rubrics based on your
needs. Consult your teacher for the final rubric.

Performance Levels

1 2 3 Suggested
Criteria Score
Beginning Proficient Advanced Weight
Proficiency Proficiency

Content Less than half of the More than half of All of the answers
answers are logical the answers are are logical and ×3
and plausible. logical and plausible. plausible.

Supporting Less than half of the More than half of All of the answers
answers have clear the answers have have clear
Information ×2
supporting theoretical clear supporting supporting
evidence. theoretical evidence. theoretical evidence.

Grammar and Less than half of the More than half of All of the answers
answers are the answers are are grammatically
Structure
grammatically correct grammatically correct correct and free ×1
and free spelling and free spelling spelling errors.
errors. errors.

Total Possible Score 18

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Bibliography

Altarejos, Anthony, Cabrera, Helena, and Riaz, Benjamin. Organization and management.
Vibal Group, Inc. 2016

Frias, Solita, and Orjalo, Victoria. Organization and management: Concepts, caselets, and
exercises. Phoenix Publishing House, Inc. 2016

Pereda, Pedrito, and Pereda, Purisima. Human Resource Management. Mindshapers Co.,
Inc.. 2008

Salvador, Samuel, Bagunas, Estelito, and Geronimo, Ellinor. Principles and Practices of
Management and Organization, Second Edition. Allen Adrian Books, Inc.. 2009

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