N5 Entrepreneurship 1. Introduction


Staffing refers to the formal process of ensuring that a business has a qualified workforce to meet its objectives and it therefore represents the lifeblood of the enterprise. Staffing your business includes a variety of activities such as human resource planning, compensation and benefits, recruitment, selection, placement and induction, training and development and performance appraisal. In a small business you, as owner/ manager, are also the personnel manager and all these activities will rest on your shoulders. It is important that you assemble the right number and kind of people around you to assist you.


Importance of people in your business


Human labour is the most important resource in a small business, because its influence determines how well the other production factors are utilised. Despite the rapid progress in technology, businesses are led and managed in the right direction by people. Without people the business will not exist. It is important to remember that people differ. Every person that you employ has his/her own desires, motives, needs and character. They bring certain skills, knowledge and experience to the workplace, but also their own emotions, attitudes and opinions regarding different aspects of life. It is impossible to separate their private lives from their work situation. A person’s individual behaviour might also be different when that person is put into a group. You will have to motivate your staff and keep them content in order for them to get job satisfaction and to be productive in their work situation. When workers have a positive attitude towards you as manager and the business, they will co-operate voluntarily to achieve the aims of the business.


There will, however, always be some degree of conflict between a business and its employees. This conflict is not necessarily to the disadvantage of the business. It can highlight problem areas in the business, which can be addressed to improve the working environment. You must be aware of possible conflict situations in your business and you should address them in the correct manner.


2. Human resources planning


Human resource planning involves having the right number of people with the proper skills in the right place at the right time to perform the various activities in the business. The personnel department usually performs this task in a business. However, most small businesses cannot afford this luxury and therefore these functions are the responsibility of the small business manager.


Recruitment of workers


Recruitment refers to the process whereby a pool of candidates is identified by and attracted to a business. From this pool some will later be selected to fill certain vacancies in the business. Recruitment can be regarded as a two-way process, because just as businesses look for suitable applicants, applicants are also looking for suitable businesses to work in.


DID YOU KNOW


Selection refers to the choice, from a pool of candidates, of the most suitable candidate who, according to the selection panel, best meets the job requirements. The specific steps in the recruitment and selection process will be discussed later in the module.


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