Question:

Explain the following steps of the staffing process :

(i) Estimating Manpower Requirements

(ii) Performance Appraisal

(iii) Compensation

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Explain each step in two or three sentences. Estimating manpower uses workload and workforce analysis, appraisal evaluates work against standards, and compensation is the pay and benefits for work.
Updated On: Oct 26, 2026
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Solution and Explanation

Step 1: Understand the question:
We explain three steps of the staffing process: estimating manpower requirements, performance appraisal and compensation.

Step 2: Step (i): Estimating manpower requirements:
Staffing begins with finding out how many persons are needed and of what kind.
Workload analysis tells how much work is to be done and the number of persons needed for it.
Workforce analysis tells how many are available. Comparing them shows if the firm is overstaffed, understaffed or optimally staffed.

Step 3: Step (ii): Performance appraisal:
It means evaluating the work of the employee against set standards.
The employee is informed of the result, and decisions on promotion, pay and training are based on it.
It also helps in finding out the training needs of employees.

Step 4: Step (iii): Compensation:
Compensation covers the pay and other benefits given for the work done.
It includes basic pay, allowances, bonus and other rewards.
A fair compensation plan keeps employees satisfied and helps the firm to attract good persons.

Final Answer:
The three steps are: estimating the manpower needed, appraising employee performance and giving fair compensation.
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