Business Studies Part I
Business Studies Part II

Needs and Importance of Staffing


In any organisation, there is a need for people to perform work. The staffing function of management fulfills this requirement and finds the right people for the right job. Basically, staffing fills the positions as shown in the organisation structure. Since the right people have to be chosen while selecting a person, the human element is very important. Staffing provides the human element or instinct while selecting a person. The attitude, aptitude, commitment, loyalty are important qualities perceived by the organisation. It is also considered to be a specialised area and the theory of knowledge available on the subject is vast. Researches on various aspects of staffing i.e., recruitment, selection, compensation and incentives, training and development, can be utilised for better results.


Human resources are the foundation of any business. The right people can help you take your business to the top; the wrong people can break your business. Hence, staffing is the most fundamental and critical drive of organisational performance. The staffing function has assumed greater importance these days because of rapid advancement of technology, increasing size of organisation and complicated behaviour of human beings. Human resources are the most important asset of an organisation. The ability of an organisation to achieve its goal depends upon the quality of its human resources.

Therefore, staffing is a very important managerial function. No organisation can be successful unless it can fill and keep filled the various positions provided for in the structure with the right kind of people.

Proper staffing ensures the following benefits to the organisation:

  • It helps in discovering and obtaining competent personnel for various jobs.
  • It makes for higher performance, by putting right person on the right job.
  • It ensures the continuous survival and growth of the enterprise through the succession planning for managers.
  • It helps to ensure optimum utilisation of the human resources. By avoiding overmanning, it prevents under-utilisation of personnel and high labour costs. At the same time it avoids disruption of work by indicating in advance the shortages of personnel.
  • It improves job satisfaction and morale of employees through objective assessment and fair rewarding of their contribution.

Staffing function must be performed efficiently by all organisations. If right kind of employees are not available, it will lead to wastage of materials, time, effort and energy, resulting in lower productivity and poor quality of products.

Staffing is one of the most essential functions for every organization. In fact, in the absence of a good staffing system no organization can exist for a long duration. Because in every organization all the resources like, money, material, machine etc are utilized properly through man power. Hence it is too important that all the personnel (employees) in organization should appoint at the job according to their ability, talent, aptitude and specializations which can only be possible through a good staffing system. Thus, it is clear that staffing is too important for every organization.

 Some important points which shows how staffing is important for every organization:

  • Maximum and Efficient Utilization of Resources: Staffing plays an important role in maximum and efficient utilization of resources. Because in every organization all the resources like, money, material and machine etc are utilized efficiently through specialized man power and specialized man power can only appoint in an organization through a good staffing system. Thus, we can say that it helps in maximum and efficient utilization of resources. 
  • Reduces Cost of Production: Staffing also plays an important role in reducing cost of production. Because it helps in appointing right person at the right job, at the right, time so that no wastage and mistakes can be made by efficient personnel during the production of products. Hence, it is clear that it assists in reducing cost of production. 
  • For Job Satisfaction-Staffing is an important source for employee’s job satisfaction. Because by means of this system jobs are allocated among the personnel according to their ability, talent, aptitude and specializations which give employees more satisfaction regarding their jobs. As a result of that they give their hundred percent efforts behind their jobs. 
  • For meeting Present and Future Needs of Employees-Staffing is very important for fulfilling present as well as future needs of employees. Because it gives a clear picture to organization that in coming year how much positions will be vacant and new positions will be established. So that organization can fulfill those vacant and new positions by appointing the deserved candidates. Thus, it is clear that staffing fulfills present and future needs of employees in organization.
  • For maintaining Co-ordination among the Employees- Staffing plays a prominent role in establishing unity and co-ordination among the employees. Because it assigns their jobs according to their ability, talent, aptitude and specializations which makes them involved in their tasks and ensure healthy and co-operative relationship among the employees.