Chapter 4 3 min read
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Staffing

Principles of Management · BBS · Updated Apr 23, 2026

Table of Contents

Staffing

Staffing fills and keeps filled positions in the organisation. Includes HR planning, recruitment, selection, training, development, performance evaluation, and compensation. The right people in the right jobs at the right time.

HR Planning

Estimates future people needs. Steps: analyse current workforce (skills inventory), forecast future needs (business plans, expansion, retirement), identify gaps, develop action plans. Job analysis: Job description (duties, responsibilities) and Job specification (qualifications, skills, experience).

Recruitment

Internal: promotions, transfers, referrals — motivation, lower cost, known capabilities. External: advertisements (Kantipur, MeroJob, RojgarNepal), campus recruitment, agencies, social media (LinkedIn). Nepal: personal networks still play significant role alongside formal channels.

Selection

Steps: (1) Application screening. (2) Preliminary interview. (3) Selection tests (aptitude, personality, technical). (4) In-depth interview. (5) Reference checks. (6) Medical examination. (7) Final selection and offer. Nepal’s labour laws prohibit discrimination based on gender, caste, ethnicity, religion.

Training and Development

Training: current job skills. Development: future roles. On-the-job: coaching, mentoring, job rotation, apprenticeship. Off-the-job: classroom, workshops, seminars, case studies, online courses. Kirkpatrick’s 4 levels: Reaction, Learning, Behaviour, Results.

Performance Appraisal

Methods: Rating scales (simple but subjective), 360-degree feedback (comprehensive), MBO (objective-based), Critical incident (specific behaviours). Common errors: halo effect, recency effect, leniency/strictness bias, central tendency.

Compensation

Direct: salary, overtime, bonuses, commissions. Indirect: provident fund, gratuity, medical insurance, Dashain bonus, leave. Nepal mandates: minimum wage Rs 17,500/month, 10% PF, annual Dashain bonus (1 month salary), maternity/paternity leave. Must be internally equitable and externally competitive.

Summary

Staffing ensures right people in right positions through HR planning, recruitment, selection, training, appraisal, and compensation. Success depends on the quality and motivation of people.

Selection Process Flowchart

StepActivityPurposeTools Used
1Application ScreeningFilter unqualified candidatesCV review, minimum qualifications check
2Preliminary InterviewAssess basic suitability and communicationShort interview (15-20 min), phone screen
3Selection TestsMeasure abilities objectivelyAptitude test, personality test, technical test, GD
4In-depth InterviewEvaluate skills, experience, cultural fitStructured/panel interview, behavioural questions
5Reference CheckVerify claims, assess past performanceContact previous employers, academic institutions
6Medical ExamEnsure physical fitness for the jobHealth checkup at designated hospital
7Final Selection & OfferChoose best candidate, negotiate termsAppointment letter, salary negotiation

Training Methods Comparison

MethodTypeDescriptionBest For
CoachingOn-the-jobSenior employee guides junior one-on-oneSkill development, personalised learning
Job RotationOn-the-jobEmployee moves through different departmentsBroadening experience, cross-functional understanding
ApprenticeshipOn-the-jobLearning a trade under a master craftspersonTechnical skills, manufacturing
Classroom LectureOff-the-jobInstructor-led teaching in a formal settingTheoretical knowledge, large groups
Case StudyOff-the-jobAnalysing real business situationsDecision-making, analytical skills
Role PlayOff-the-jobActing out workplace scenariosCustomer service, negotiation, conflict resolution

Nepal Labour Law Provisions

ProvisionRequirement
Minimum WageRs 17,500/month basic (revised periodically by government)
Provident Fund10% employer + 10% employee contribution
GratuityOne month salary per year of service (after 3+ years)
Dashain BonusOne month’s salary before Dashain festival (mandatory)
Annual Leave18 days paid leave per year
Sick Leave12 days per year (with medical certificate for 3+ days)
Maternity Leave98 days (60 days paid)
Working Hours8 hours/day, 48 hours/week maximum

Exam Tips

Tip 1: Selection process steps in order is a very common question — know all 7 steps. Tip 2: On-the-job vs off-the-job training comparison with 3+ methods each is frequently tested. Tip 3: Performance appraisal methods (rating scales, 360-degree, MBO, critical incident) with merits and limitations. Tip 4: Nepal labour law provisions (minimum wage, PF, gratuity, Dashain bonus) are guaranteed exam content for BBS. Tip 5: Kirkpatrick’s 4 levels of training evaluation (Reaction, Learning, Behaviour, Results) is commonly asked in short-answer format.

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