CHAPTER FIVE

STATFING AND ORGANIZATION

5.1 The Staffing function
Staffing is the executive function of recruiting, selecting, training, developing, promoting, and
retiring subordinates. It is the responsibility of every manager. The benefits of staffing are:

ht job.

development of successive managers.

o Avoids over manning

o Avoids shortage of manpower in advance

assessmentand fair rewarding of their contributions.

Generally, the purpose of staffing function is to ensure that the right number and the right type of
people are working on the right jobs at the right time and right place.
ACTIVITIES IN STAFFING FUNCTION

The major activities in the staffing function include:

1.Manpower planning.
2.Recruitment
3.Selection
4.Placement
5.Induction/ orientation
6.Training and development
7.Performance appraisal.
8. Separation, Promotion, Transfer & Layoffs

1. Human Resource planning/Man power planning

Manpower refers to the quantity and quality of workforce. Manpower planning is the process of

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forecasting the number and type of personnel whom the organization will have to hire, train, and
promote in a particular period in order to achieve its objectives. It involves determining
objectives, policies, programs, and procedures in relation to human resources. It refers to
planning for the future personnel needs of the organization.
Why human resource planning is needed?
 To carry out the work of the organization, skilled and qualified manpower is needed. A
good human resource plan would help the management in recruiting and selecting the
best available personnel to carry out the activities of the organization effectively and
efficiently.
 People leave organizations for a number of reasons like retirement, transfer, better
opportunities in other organizations and it is the duty of the human resource department
to replace them.
 A good human Resource plan would go a long way in trying to predict when the
vacancies would be created and when the recruitment and selection should be carved
out.
 Labor turn over and absenteeism seem among workers are also factors which make
human resource planning important.
 In order to meet the requirements of expansions and diversification programs of the
organization human resource is important.
 The present situation of fast paced change in technology and changing needs of the
work force has also necessitated creation of an effective human resource plan to cope
up with future uncertainties.
 Human resource planning will help the management in identifying the areas where
there are surplus personnel. These surplus personnel can be transferred to other
departments or can be assigned some other duties.
Manpower planning process

The process of manpower planning consists of the following steps:

1. Forecasting manpower requirements: This refers to anticipation of the requirements of
manpower for a particular future period of time in terms of the number, type and quality of
people. Three stages are involved in projecting future manpower needs.
A.Determine replacement of lost manpower. Based on past experience, the human

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resource manager should calculate the rate of loss of manpower due to leave,
retirements, quits, transfers, deaths, discharges etc.
B.Determine the need for new manpower. Based on workload analysis,' the manager
needs to determine the new manpower required.
C.Determine the abilities/ skills required for the efficient performance. Job
specifications and job descriptions are prepared to determine job requirements and the
quality of needed personnel. Job description is an organized, written and factual
statement of job contents in the form of duties and responsibilities of a particular job.
Job specification is a formal statement of minimum acceptable human qualities required
for the successful performance of a job.
2. Preparing manpower inventory/manpower audit. It refers to the analysis and assessment of
the current human resources in terms of the size and quality of personnel available.
3. Identifying man power gaps: In order to identify the manpower gap, the existing number of
personnel and their skills are compared with the forecasted manpower requirement
4. Formulate manpower Plans: This involves developing appropriate and detailed policies,
programs and strategies for recruitment, selection, training, promotion, retirement, and
replacement.
Example
Production budget......................................................................................... 100,000 tons
Standard man hours / ton……………………………………………….. 50 hours
Productive hours per worker in the year........................................................ 2,000 hrs
Allowance for absenteeism and turnover...................................................... 500 workers
Existing manpower……………………………………………………..… 2,200 workers
Determine the new manpower
Solution
Total planned hours = 100,000 x 50 = 5,000,000
Number of workers required = 5,000,000/2000 = 2500 workers
Number of workers required ............................................ 2500
Add: allowance for absenteeism and turnover ................. 500
Total requirement ......................................................... ...3000
Less: existing manpower.............................................. ...2200

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New workers ................................................................ …800 workers

2. Recruitment and selection

Recruitment
It is the process of searching for prospective employees and stimulates them to apply for jobs
in the organization. the main purpose of recruitment is to identify sources of
manpower so as to satisfy the man power requirement of the organization. It
can be considered as the most important function of the personnel department.
The process of recruitment is considered to be both positive as well as negative.
Positive because, stimulates people to apply for the vacancies created in the
organization and negative because, it screens out or rejects the majority of
applicants who don’t match the broad job requirements. So, during
recruitment the potential candidates will be pooled together throu8gh the
advertisement of vacancies on mass media. The vacancy to be announced to
the candidates should incorporate at least the two statements.
1. The job description statements and
2. The job specification statement
Job description- is the written record of duties, responsibilities and
requirements of a particular job. It gives information of about the title,
locations, duties, working conditions and hazards. It is the description of job
quality characteristics.
Job Specification -It is a statement giving the requirements of personnel who
should be made responsible for a given job. It gives information regarding the
characteristics, qualities (physical, psychological and demographic),
qualifications, experience, etc, of the worker who is most suitable to carry out
the activities mentioned in the job description. So it is a statement specifying
the characteristics of the worker occupying the position.

Sources of Recruitment
The sources of recruitment are generally categorized in to two, internal and
external.

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1.Internal sources
These consist of transfers and promotions of present employees. A transfer refers to the shifting
of an employee from one job to another without a drastic change in the responsibilities and status
of the employee. On the other hand, promotion involves shifting an employee to a higher
position carrying higher responsibilities, higher status and more pay. Transfer is a horizontal
shifting while promotion is a vertical shifting.
Advantages
oImprove employees' motivation, loyalty and security and morale
oLess expensive (no induction training)
oSimplifies the process of selection and placement
oLower level employees are encouraged to look forward to higher ranks.
oDevelops better employee-employer relationships
Disadvantages
oInvolves danger of in breeding by stopping infusion of new blood into the organization
oReduces the area of choice
oLimits the pool of talents
oDoes not provide an equal opportunity to all people to compete for jobs
oEncourages favoritism and nepotism
oEncourages complacency
2. External sources
Where all vacancies cannot be filled from within, external sources are used to fill the positions.
The advantage of extern sources is that it provides wide choice and brings new blood to the
organization. However, it is not without limitation. The major limitation is that it is expensive
and time consuming. The various external sources of recruitment are:
a. Advertisements
b. Employment agencies
c. Educational institutions
d. Recommendations by other people
e. Causal callers
f. Direct recruitment
The advantages of external sources are:

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  The management need not compromise in their recruitment; they can get
the best professionals available in the market with the required
experience, skill, education etc.
 Recruitment can be done which might include all sections of the society
 Fresh blood can be pumped in to the organization personnel who are
creative and who are specialists can be attracted.
The disadvantages can be:
 Adequate time and money needs to be spent on training and induction
 Chances of brain drain or the employees being recruited by other
organizations increase
 The whole process of external recruitment is more expensive than
internal
Methods of recruitment
Direct method recruitment:- The recruiters are sent directly to the colleges, universities,
educational institutions, and contact the graduating students and select the best among them. The
recruiters also contact the prospective employees directly, the recruiters may hold conference
and seminars for the prospective employees and encourage them to apply for vacancies, and the
recruiters may participate in job exhibitions or job fairs to attract prospective employees.
Indirect method: - In this method the organization encourage prospective employees to apply
for vacancies through advertisements in newspapers, magazines, journal etc. Generally the
advertisements for top-level position are given in national newspapers and for lower level and
workers advertisements are given in regional newspapers. The advertisements could be detailed
(name of the organization, type of the job, salary and other benefits etc)or bind (only the type of
job and p.o.box number).
Third party method: - There are many private employment agencies which carry out the
recruitment process of an organization for a fee. Governments also have employment exchange
which provide organizations with man power. Placement services of colleges and universities,
trade unions etc., are also part of the third party method of recruitment.
Selection
Selection involves screening or evaluation of applicants to identify those who are best suitedto
perform the jobs. It divides the candidates in to two categories.

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 1. Those who will be employed
2. Those who will not be employed
Selection is described as a negative process. The proper selection of employees will go a long
way towards building a stable work force and eventually reducing labor costs. When selected
personnel are suitable to the job requirements, their efficiency and productivity will be high.
Such personnel will have job satisfaction and high morale. Rates of absenteeism and labor
turnover will be low.
Steps in selection procedure
In order to achieve the purpose of selection, a well-planned and suitable selection procedure is
required. This procedure involves the following steps:
1. Application Blank: It is a brief written resume of the name, age, address, education,
occupation, interests, experiences etc of the candidates. It provides basic information about the
prospective employee, which is helpful at the time of interview. It reflects the candidate's
personality and his/her desire for the job. First inference about the candidate can be made.
2. Employment test: It is designed to measure selected aspects of the candidate's personality
and to predict how well the applicant is likely to perform the job (the fitness of a person to a job)
Some of the employment tests include:
a. Intelligence test: It is used to measure the mental capacity of an applicant in terms of
his memory, reasoning ability, power of understanding, verbal comprehension, word fluency
etc.
b. Aptitude test: Aptitude refers to the latent ability or the capacity of individuals for
learning the skills required performing the job. Aptitude test is used to measure an
individual potential for development.
c. Personality test: It measures the temperament, maturity, initiative, judgment, emotional
balance and other personality traits of an individual. It helps in weeding out candidates
who may not be able to go along with other people.
d. Proficiency test: It is designed to measure the level of knowledge, proficiency or skill
already acquired by an individual in a particular job. It is also called performance, ability,
achievement, or trade test.
e. Interest test: It is designed to identify the likes and dislikes of the applicant for
different jobs.

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 3. Employment interview
4. Physical / medical examination
5. Checking references
6. Final approval
2 Preliminary interview: - This is generally done by a junior executive of the human resource
department where in the general information about the company and the job/po0sition is given
and brief information about the applicants, educational and professional qualifications and
obtained. Observation is also made of the general physical feature and physical fitness of the
applicant.
3 Final Interview: - Interview is the most widely used selection tool. It is a complex
process in which the interviewer tries to form an opinion about the interviewee’s
personality, intelligence, technical competence, interests, attitudes etc. through face-to-
face interaction. It is an attempt to secure maximum amount of information from the
candidate concerning his/her suitability for the job under consideration. This technique
can also be used for purposes other than selection like, in performance appraisal, in
grievance handling, in disciplinary action, for counseling and other general problem
solving.

The basic objectives of interviews would be as under

 To properly judge an applicant’s qualifications and characteristics
 To give the applicant important and relevant information about the job and the
organization
 To establish a good rapport with all the candidates attending the interview
 To promote the good will of an applicant towards the organization, immaterial of the
outcome to the selection process
 To help the management in grievance handling in conduction of disciplinary actions and
in interactions with the workers union
 To observe the applicants, appearance personality, confidence level etc.
 To solve the problems arising out of the various interactions seen inside the organization
Types of interviews
1. Patterned or structured interview:-

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This is a very common type of interview in which the focus is on asking structured
predetermined questions in a strict sequence. There is little or no deviation of the sequence of
questions and most of them are job/skill oriented.
2. Non-directive or free interview:-
These interviews are unstructured and unplanned. The basic aim of this type of interview is to
judge the real nature of the applicant. General, unstructured questions are asked and the
candidate is given adequate time to answer in detail. The discussions in the interview may be
regarding various subjects unrelated to the job under consideration.
3. Depth or Action interview
This interview is semi structured, where structured questions are asked in intervals of
unstructured questions or conversations. It is a combination of the patterned and free interview
styles. The aim of this interview is to obtain detailed information about both the personal as well
as the professional life of the interviewee.
4. Group or Discussion interview:-
The interview is held for more than one candidate and the role of the interviewer becomes that of
the observer, wherein he tries to identify the persons with the required qualities for the concerned
job. The group of candidates is given a topic or a problem for discussion and the observers
identify the persons who are having good leadership skills, who influence the discussion, who
are good analyzers, who have good communication skills etc. and select the ones most suitable
for the given job.
5.Panel or board interview
It is an interview in which the number of interviewer would be many and the interviewee will be
one. The panel (board) consists of expertise of different areas.
6. Stress interview
It is in which the interviewer pretends to be hostile & provokes the candidate by asking questions
rapidly by criticism & trying to annoy him. It is conducted to find out the reaction of the
candidate under pressures & also to observe the presence of the mind of the candidate when he is
angry or confused.
Physical examination
It is checking the physical fitness of the candidates

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Medical examination of the candidate before employment is a necessary step in the selection
process. To prevent the existing employees from the communicable diseases & unwarranted
claims in the form of medical & insurance expenses
Also needed to identify the disabilities/ handicaps the candidates have so as to help the
management in allocation of the jobs.
This step is necessary for 3 vital reasons: to assure that the applicant is fit to work in the
organization, to assure that the candidate is physically fit for placement in a particular job, to
provide base against which later physical examination may be compared. (- is important in the
disability claims that may occur during the job assignments).
Referenceletters/ Reference check & background investigation
Verification of information obtained from the candidates application form & selection interview.
After a candidate has passed successfully all the above stages in the process of selection, a
reference check is made where in the HR manager gets in touch with the current or previous
employer of the candidate and find out relevant details. This is done to see whether the
candidate has furnished correct details & also to cross check the suitability of the candidate for
the given position. Include: letter of recommendation; references; testimonials, etc… from the
former employers so that it is possible to know the competence of the candidates.
Final selection & communication (Job offering)
After getting a positive reference, a final list of selected candidates is made & this information is
passed on to the candidates, the concerned line managers & other people.
1. Decision making and Placement
The candidates who have been selected should be given placement letters that state their
employment and specific positions, and other employment related matters.
2. Induction & Orientation (Socialization)
When the candidate is selected and offered a job, it is necessary to introduce the new employee
to the organizations philosophy, rules, policies, etc…..then the new employee begins his work.
He should be assimilated to the job & organizational environment.
Induction & orientation have to do with familiarizing the new employee with the organization.
They can be done by oral communication and physical observation, written media like manuals,
guidelines and others.

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The employee will be given information on the organizations history, products, operations,
policies & rules, services available, opportunities & other issues.
Induction & orientation are the two important tasks to be accomplished to ensure smooth
organizational membership of a new employee. They are assimilation & socialization of a new
employee.
Induction- Refers to the process of familiarizing a new employee with the overall organizational
environment through the provision of adequate information to bring about change in new
employee’s expectation, behavior, and attitude in order to assure the best match with
organizational interest. It involves providing information about the organization’s history,
purpose, operations, products/services and his contribution to the organization and needs &
benefits for the new entry. It is done through the interaction of the employee, the immediate
supervisors & personnel.
Orientation-It is designed to enable new employee to familiarize with working environment
through the provision of adequate information. It involves discussion between a manager &
employee regarding the job assignment including specific location, rules and procedures of the
work as well as the materials, equipments needed to do the job.
The purposes of induction & orientation
 Reduce the start-up cost -enable a new employee to meet performance standards sooner.
 Reduce anxiety - employee fear of failure on the job can be avoided, and he develops self
confidence.
 Decrease turn over - provision of all kinds of information during the entry time make new
employee stable in the organization.
 Save time to supervision - reduce the time of a supervisor to supervise and observe the
performance of an employee.

5.2 Training and development

Having qualified and well trained personnel, to perform various jobs is a very basic necessity for
any organization. Training becomes necessary because of changing technology, up production of
skills and knowledge of the workers, the need to increase the productivity of the workers etc, so
as to retain the competitive edge. Training and development seem to indicate the same meaning
but a detailed examination would real some differences. Training is a process of leaving a
sequence of programmed behavior, which help the trainees in improving their job performance

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and better apply their knowledge where as development covers not only performance
improvement activities but also those, which enhance personality, gain better attitudes, values
and behavior.
The scope of development is wider than training. To understand the difference between training
and development more clearly we need to look at their impact on the learning dimensions.
Training
Training becomes necessary because of the changing technology, up-production of skills &
knowledge of workers, the need to increase the productivity of the workers, etc.
Training is any process by which the aptitudes, skills and abilities of employees to perform
specific jobs are increased. It is the act of increasing the knowledge & skills of employee for
doing a particular job; and a process of learning a sequence of programmed behavior which help
the trainees in improving their job performance and better apply their knowledge.
Training is designed to improve a person’s skills to do the current job at high level from the first
day they start working. To ensure improvement in person’s skills & knowledge to perform the
work through training, effective training system should be designed.
Objectives of Training
 To make the workers perfect in their work
 Proper training would help the worker in producing quality product
 Training will help the management in developing personnel for future expansion or
diversifications
 A good and well-planned training program will help in improved performance
 Proper training will help the worker in adopting safe work procedures
 Proper training will help the worker in adopting safe work procedures
 Training will help the worker in avoiding them from being obsolete
Importance of training

It is important that the employee be indicated into training programs to improve their knowledge,
skills and future performance. The need for proper training is increased by the following
considerations.
 Increased productivity
 Improvement in employee moral

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  Availability for the future personnel needs of the organization
 Improvement in health and safety
 Reduced supervision
 Personal growth
 Organizational stability
Steps in designing effective training
1. Need assessment-assess the needs for training based an organizational analysis, person
analysis & task analysis.
2. Assessment of employee readiness-Consider whether employees are motivated to learn.
3. Creation of learning environment -Lay a foundation for successful training by creating
the conditions under which employee will learn best.
4. Ensuring transfer of training -Ensure that employee will be able to apply what they have
learned to their jobs.
5. Selection of training methods-Consider the possible training methods & select those that
will be most appropriate.
6. Evaluation of the training program-Evaluate the outcome of the training program.
Methods of training
Organizations can use training methods that they believe appropriate to satisfy their training
needs & accomplish objectives. The commonly used training methods are classified into:
 On-the- job training
 Off- the-job training
 Vestibule/ Simulated training

On-the-job-training:- In this type of training, an employee is put on the work floor directly and
is assigned to a superior to an experienced co-worker who teaches/guides him in how to do the
work practically. These methods are parts of the every day job activity of the organization. This
is the most common method of training, because it is practical it is practical oriented, less
expensive and the focus is on the job. The various techniques used under this method are,
coaching (understudy) apprenticeship, where the super visor or an experienced worker gives
personal and in-depth guidance to an employee or subordinate.
Off the job-training- This type of training is given to the trainees away from the work floor and
is not the everyday activity of the organization. The trainees are imparted theoretical knowledge

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in a classroom or a training center and the most popular kind of off the-job training methods are
lectures, conferences, group discussions, case studied, role-play, programmed instructions, etc.
Vestibule/Simulated training: - This is a combination of on the job training methods. In this
method identical machines and equipment, which are used on the work floor, are installed in a
training center and also an effort id made to implicate work atmosphere found on the actual work
floor. This method tries to give the trainees a chance of getting trained in a situation that is as
close to the original work situation as possible. Here the work environment is almost similar to
the actual environment, but is not the rest environment. E.g.Training, given for a pilot.
3. 3 Maintenance and Utilizations
Performance Appraisal and Compensation
Performance appraisal is a process of evaluating an employee’s performance of the job assigned.
Performance appraisal is a step which tells the management how effective their processes of
recruitment, selection, and training are. It basically involves the estimation of the value,
excellence and quality of the personnel of the organization. Performance appraisal is also called
as merit ratings, employee evaluation, progress report, staff assessment etc.
Objectives of performance Appraisal
 It helps the management in maintaining the inventory of man power along with their
quality and worth for the organization
 A good performance appraisal helps the management in identifying and meeting the
training need of the employee
 It helps the management in deciding about salary increments, incentives and in deciding
who should get promotions, transfers and demotions.

Performance Appraisal Process

The steps to be followed during the evaluation of workers performance are:-
 Establishing performance standards:- performance standards are developed at the time
of developing job descriptions and job specifications. These standard should be clear,
precise, and objective oriented.
 Communication of standards to employees:- Performance standards should be
fcommunicated to all the concerned employees, because unless and until the employees
are aware of the standards, they will not be in a position to meet them.

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  Measurement of the actual performance:- In this third stage the actual performance of
the employees is noted and the information about the employees performance is collected
through personal observation, written report, oral report etc.
 Comparison of the actual performance with that of the standard:- An objective and
impartial comparison of the actual performance with the standard perfomance is carried
out short falls, if any of the employees are identified and deviations, if any, are noted
down. This comparison is also used to identify the most promising employees who have
the potential for growth and =advancement.
 Communication of the results: - These results are communicated to the concerned
employees and discussions are held with them to identify their strengths and weaknesses
and also to identify the difficulties in carrying out their activities. Objective discussions
and accurate information about the performance will help the employee in bettering his
performance.
 Corrective actions: - If there are any short falls in the performance of the employees the
management along with the concerned employees should identify the reasons of the short
falls. After the reasons are properly identified, the ways and means of overcoming these
difficulties are devised and implemented.
Compensation
People work in organizations for the sole purpose of earning enough money to live comfortably
and satisfy all their needs. Wage and salary administration is the establishment and
implementation of sound policies and practices of employee compensation. Compensation is just
the reward for the work done by an employee and it should be balanced so as to keep the parties,
the employer and the employee happy and satisfied. Compensation includes the money paid as
reimbursement.
Factors affecting compensation policies of the organization
 Organizational ability to Pay:- The organization should have enough funds to pay
enough salary or wage to the employee.
 Supply and demand of labor:- If the supply of labor is more than the requirement then
the management can pay less wages and salaries to its employee and reverse in case of
less supply

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  Prevailing market rate: - The going wage rate or salary in the industry also influences
the wage and salary policy of the organization. An organization cannot give less
salary/wage than the average salary of the industry.
 Cost of living:- The cost of living differs in different cities
 Productivity: - The level of productivity of the workers also has an impact on the kind of
wage/salaries they get; more productive workers get more salaries.
 Bargaining Power of the worker’s unions:- Powerful workers union generally have a
lot of influence on kinds of wages and salaries given by the organization
 Job requirement: - Some jobs are more hazardous and dangerous than others and the
employees understating them would get more pay than others who are in relatively safer
positions.
 Managerial attitude: - The top management has a lot of influence on the wage and
salary administration because they can choose whether to pay the industry average salary,
above or below the average salary, the kind of working conditions to be provided to the
employees, the length of work hour etc.
Types of incentives
Intrinsic rewards: - These are rewards which a worker receives for himself and are totally
dependent on the kind of work done by him. These individual incentives could be in the form of
participation in decision-making , job freedom, more responsibility, more interesting work
assignment, opportunity for personal growth etc.
Extrinsic rewards: - These incentives are meant for all the employees of the organization and
they can be follows.
 Direct compensation: - These incentives are given to all employees of the organization
and basically are monetary in nature and the payment is made immediately like salaries
or wages paid to the employees , over time earning’s, holding premiums, performance
bonus, profit-sharing, stock options etc.
 Indirect Compensation:-These incentives are realized at a later period of time, generally
once in a year or at the time of retirement like group insurance schemes, contribution for
provident fund services etc.
The time and mode to payment
There are two basic methods of payment:

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  payment by time and
 payment by output
The relative advantages of each of the two basic methods of payment; by time or by output are
summarized in terms of the circumstances or situations under which each is preferable:-
1. Payment on a time basis is more satisfactory when
 Units of output are not distinguishable and measurable
 Employees have little control over the quantity of output or there is no clear-cut relation
between effort and output, as on some machine-paced jobs.
 Work delays are frequent and beyond employees’ control
 Supervision is good, and supervisors know that constituter’s a fair day’s work
2. Payment on the basis of output is more satisfactory when:-
 Units of output are measurable
 A clear relation exists between employee effort and quantity of out put
 The job is standardized, the flow of work is regular, and break downs are few or if many
consistent
 Quality considerations are somewhat less important than quantity of out put
 Supervision is unsatisfactory, or supervisors cannot devote enough attention to individual
performance
 Competitive conditions and lost control make it imperative that labor costs per unit be
definite and fixed in advance, as in the shoe and clothing industries

5.4 Separation, Promotions, Transfers and Layoffs

Separation

Separation refers to the discontinuation of the relation between employee & the employer. It is
the final HRM function. Like other functions it requires preparation & planning.
Separation can be initiated by
 the employers like - mandatory retirement; dismissal; layoff
 the employees like - resignation; voluntary retirement; quit
 the agreement - when the contract ends; or they can also be caused by things outside the
will of both the employer & the employee (accidents, death)
Causes for separation

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Causes for separation of employee from the organization mainly are retirement; layoff;
dismissal; permanent; disability; resignation; quit; outplacement; …
Promotion
Promotion is the advancement of an employee to a better job. Characteristics of ' better job' to
which an employee seeks promotion are greater responsibilities, more prestige or status, greater
skill, and specially increased rate of pay or salary, better hours or better locations or working
conditions.
If the job doesn’t involve greater skill or responsibilities & high pay, it should not be
considered as promotion. Upgradingrefers to a practice related to promotion, but it amounts to
a small scale advance in status. It is the movement of an employee to a more responsible job
within the same occupational unit and with a corresponding increase in pay. Both upgrading &
promotionare ways of recognizing & developing the abilities of employees within the
organization instead of filling skilled and responsible positions from outside. They should be
distinguished from transfer.
Transfer
Transfer is the movement of an employee from one job to another on the same occupational level
of wage/ salary. No appreciable increase or decrease in duties and responsibilities involved but
there may be a change in their specific nature and in working conditions. Some transfers entail a
decrease in job duties and especially in pay, and called downgrading or bumping. It is more
frequently used to protect employment opportunities for employees displaced from higher rated
jobs. It is moving to less desirable jobs.
Layoff
Layoff occurs when there is lack of business or budget curtailment/ shortage. It is forced
reduction of the number of employees. It is the most frequent type of separation of employees
from the employed workforce.
Layoff is unlike quits, retirements or deaths, it doesn’t necessarily involve a permanent
separation from the payroll. Laid-off employees normally expect to be rehired by their employer
when conditions improve.
Quits-Quit refers to the voluntary movement of the worker from the organization such as health
problem resignation.

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