For CAIIB ABFM aspirants, Organising & Staffing is one of the most important topics to master.
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The article covers Staffing Principles, Non-Monetary Motivators & Employee Engagement, Centralisation vs Decentralisation, Lewin’s Change Management Model, Performance Appraisal – Critical Incident Method, McKinsey 7S Framework, Knowledge Management (SECI Model), Functional Structure, Staffing Plan, Line vs Staff Authority, Kubler-Ross Model, Kotter’s 8-Step Model, Training & Retention Practices, and more.
1. Staffing Principles, Non-Monetary Motivators & Employee Engagement
Staffing ensures the right people are placed in the right roles to achieve organisational goals.
- Right person for the right job
- Diversity & inclusion in recruitment
- Clear role descriptions and accountability
- Continuous learning and development
- Employee engagement and retention focus
Non-Monetary Motivators
Apart from salary, non-financial motivators drive engagement: recognition, autonomy, growth opportunities, and flexibility. These lead to higher job satisfaction and productivity.
Staffing Plan – Combination of Permanent & Temporary Staffing
Effective organisations adopt a hybrid staffing model that combines permanent employees (for core roles) and temporary or contractual staff (for projects and seasonal tasks).
2. Organising: Centralisation vs Decentralisation
Centralisation keeps decision-making at top levels, ensuring uniformity and control.
Decentralisation distributes authority for faster decisions and innovation.
Scalar Chain & Organising Fundamentals
The scalar chain defines the chain of command in an organisation. Key principles include unity of command, division of work, span of control, and coordination.
Line Authority vs Staff Authority
Line Authority involves direct control over operations, while Staff Authority provides expert advice and support to line functions.
3. Organisational Culture & McKinsey 7S Framework
Organisational culture reflects shared values and behaviour patterns. The McKinsey 7S Framework includes Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff. The core element—Shared Values— aligns the organisation and drives culture change.
4. Change Management Models
Lewin’s Change Management Model
Comprises three stages – Unfreeze, Change, and Refreeze. It highlights the importance of preparing, implementing, and stabilising change.
Kubler-Ross Change Curve
Explains the emotional stages people experience during organisational change: denial, anger, bargaining, depression, and acceptance.
Kotter’s 8-Step Change Management Principles
The model focuses on creating urgency, forming a vision, empowering action, generating short-term wins, and anchoring new approaches into the culture.
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5. Knowledge Management – SECI Model & Socialisation Stage
The SECI Model (Socialisation, Externalisation, Combination, Internalisation) explains how tacit and explicit knowledge transform within organisations.
In the Socialisation Stage, new employees learn by observing and interacting—crucial for onboarding and knowledge transfer.
6. Functional Structure – Disadvantages
- Leads to departmental silos
- Slower cross-functional communication
- Limited flexibility and innovation
- Over-specialisation reduces coordination
7. Performance Appraisal Methods
Critical Incident Method
Managers record specific positive or negative employee behaviours during the review period for discussion in appraisal meetings.
Other Appraisal Methods
- Graphic Rating Scales
- 360-Degree Feedback
- Management by Objectives (MBO)
- Behaviourally Anchored Rating Scales (BARS)
Retention Practice: Realistic Job Previews
Giving candidates a realistic overview of job roles before joining improves engagement and reduces early attrition.
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8. Training of Newly-Hired Software Developers
Effective onboarding includes culture orientation, technical upskilling, mentoring, and setting clear career paths—ensuring better retention and performance from new recruits.
9. Summary Table
| Topic | Key Points for ABFM | Question Pattern |
|---|---|---|
| Staffing Principles | Right fit, motivation, training, hybrid staffing | Explain a staffing principle example. |
| Centralisation vs Decentralisation | Trade-offs between control and speed | Advantages of decentralisation in banks |
| McKinsey 7S Framework | Shared Values central to organisational culture | How does culture affect performance? |
| Lewin’s Change Model | Unfreeze – Change – Refreeze | Identify Lewin’s stage from scenario |
| Performance Appraisal | Critical Incident, MBO, 360° Feedback | Best appraisal method for development focus |
Why This Topic Is Important for CAIIB ABFM
Banks today operate in dynamic environments where digital transformation, compliance, and employee engagement are vital. Mastering Organising & Staffing ensures you understand how structure, culture, and people management align to achieve banking goals.
Final Words
This article serves as your go-to study material for the topic Organising & Staffing – CAIIB ABFM. Don’t forget to Watch the YouTube Video and Join the Complete CAIIB Course to strengthen your preparation and score high in the exam.
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