CLASS 12 BUSINESS STUDIES

CHAPTER-6
STAFFING

IMPORTANT QUESTIONS

VERY SHORT ANSWER QUESTIONS ( 1 or 2 Marks)

QUESTION 1.

Why is 'employment interview' conducted in the process of selection?

(CBSE BOARD 2017)

Answer. The purpose of employee interview is to evaluate the applicant’s suitability for the job
post by seeking information from him and to check whether the person is suitable for the job
post.

QUESTION 2.

It is described as the managerial function of filling and keeping filled the positions in the
organization structure. Which function of management is referred here?

Answer: Staffing

QUESTION 3.

“Staffing makes for higher performance by putting right person on the right job”. Is this
statement true or false?

Answer. True

QUESTION 4.

Alpha Enterprises is a company manufacturing water geysers. The company has a functional
structure with four main functions Production, Marketing, Finance and Human Resource. As
the demand for the product grew, the company decided to hire more employees. Identify the
concept which will help the Human Resource Manager in deciding the actual number of
persons required in each department.
(CBSE BOARD 2017)

Answer. The concept, which will help the Human Resource Manager in deciding the actual
number of persons required in each department is Workload Analysis.

QUESTION 5.

Why is 'Aptitude Test' conducted in the process of selection?

(CBSE BOARD 2017)

Answer. The Aptitude Test in the process of selection is conducted to measure of individual’s
potential for learning new skill.

QUESTION 6.

It is recruitment, selection, development, utilization, compensation and motivation of human

resources of the organization. Give the name of the concept mentioned here.

Answer: Human Resource Management.

QUESTION 7.

What is the next step after selection?

Answer: Placement and Orientation.

QUESTION 8.

It seeks to attract suitable applicants to apply for available jobs. Give the term.

Answer: Recruitment.

QUESTION 9.

These are run by the Government as a source of recruitment for unskilled and skilled operative
jobs. What is being referred here?
Answer: Employment exchanges.
QUESTION 10.

Which type of personnel do management consultancy firms recruit?

Answer: Management consultancy firms help the companies/ firms to recruit technical,
professional and managerial personnel.

QUESTION 11.

Why induction is not required in the internal source of recruitment.

Answer. As employees are already familiar with the organization induction programme is not
required.

QUESTION 12.

State the meaning of placement as a staffing function.

Answer.
Placement: Once the job offer has been accepted by the selected candidate he is placed on the
new job. Proper placement of an employee reduces absenteeism. Placement therefore refers to
placing the right person on the right job.

QUESTION 13.

It is a test used for selection of employees to measure individual’s potential for learning new
skills. Mention its name and explain two other tests.

Answer: Aptitude.

Other Tests:
a) Personality Test: personality tests provide clues to a person’s emotion

b) Intelligence Tests: It tests a person’s ability to make decisions and adjustments.

QUESTION 14.

Trainee is put under the guidance of a master worker to acquire a higher level of skill, for
example to become plumber, electrician, etc. Which method of training is referred here?

Answer: Apprenticeship programme.

SHORT ANSWER QUESTIONS (3 or 4 Marks)

QUESTION 15.

Name and define the process that helps in finding possible candidates for a job or a function.
(CBSE BOARD 2015)

Answer. Recruitment is defined as the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.

QUESTION 16.

Mr. Naresh recently completed his M.B.A. from one of the Indian Institutes of Management in
Human Resource Management. He has been appointed as Human Resource Manager in a Truck
Manufacturing Company. The company has 1,500employees and has an expansion plan in hand
that may require additional 500 persons for various types of jobs. Mr. Naresh has been given
the complete charge of the company's Human Resource Department.

List out the specialized activities that Mr. Naresh is supposed to perform as the Human
Resource Manager of the company.
(CBSE BOARD 2015)

Answer. Specialized activities that Mr Naresh is supposed to perform as a human resource

manager are:

I. Analysing jobs.

II. Recruitment

III. Selection.

IV. Placement and orientation.

 V. Training and development of employees.

VI. Performance Appraisal of employees.

VII. Developing compensation and incentive plans.

VIII. Maintaining labour and management relations.

IX. Handling grievances and complaints of employees/ workers.

X. Providing for social security and welfare of employees.

XI. Defending the company in lawsuits and avoiding legal complications.

QUESTION 17.

Vinod – The Human Resource Manager, Umesh – The Assistant manager and Ashok – The
Marketing Head of Hitashi Enterprises Ltd. decided to leave the company.

The Chief Executive Officer of the company called the Human Resource Manager, Vinod and
requested him to fill-up the vacancies before leaving the organization. Vinod suggested that
his subordinate Rajesh is very competent and trustworthy. If he could be moved up in the
hierarchy, he would do the needful. The Chief Executive Officer agreed for the same. Rajesh
contacted ‘Zenith Recruiters’ who advertised for the post of marketing head for ‘Hitashi
Enterprises Ltd.’. They were able to recruit a suitable candidate for the company. Umesh’s
vacancy was filled-up by screening the database of unsolicited applications lying in the office.

(a) Name the internal/external sources of recruitment used by ‘Hitashi Enterprises Ltd.’ to fill-
up the above stated vacancies.

(b) Also, state any one merit of each of the above-identified source of recruitment.
(CBSE BOARD 2016)

Answer.
(a) The internal/external sources of recruitment used by ‘Hitashi Enterprises Ltd.’ to fill- up the
various positions are listed below.

For the post of Human Resource Manager: Promotion

For the post of Marketing Head: Placement Agencies and Management Consultants

For the post of Assistant Manager: Casual Callers

(b) The following are the merits of above listed sources of recruitment.

Merit of Promotion: Boosts employee morale and induces better performance from the
promoted employees.

Merit of Placement Agencies and Management Consultants: Helps in inducing the right talent
in the organisation because of their expertise and specialization in the field of hiring fresh blood.

Merit of Casual Callers: is the cheapest source of recruitment

QUESTION 18.

Explain briefly 'transfers' and 'promotions' as internal sources of recruitment.

(CBSE BOARD 2017)

Answer.
(i) Transfers: Through transfers, job vacancies are filled by shifting suitable individuals working in
another department of the organisation to the department where the vacancies exist. Transfers
is a horizontal process in which the employees transferred are generally not given any higher
responsibilities or job positions.

(ii) Promotions: Promotion means being placed in the positions of increased responsibility.
Promotion and career planning is very important.

QUESTION 19.

Explain briefly 'Casual Callers' and 'Labour Contractors' as external sources of recruitment.
(CBSE BOARD 2017)

Answer.
(i) Casual callers: Many reputed business organizations keep a database of unsolicited applicants
in their office. As and when vacancies arises, it contacts them and persuades them to apply for
the jobs available. This list can be screened and best candidate is selected.

(ii) Labour contractors: Organisations approach labour contractors for engaging low-skilled
workers or labourers. Labour contractors maintain a close contact with labourers and other
workers and call them for work as and when the need arises.
QUESTION 20.

“The present day human resource management is a broader concept.” Explain

Answer. The present day human resource management includes the following activities:
a) Helps in achieving organizational goals along with achieving personal goals of employees.
b) Employees the skills and knowledge of employees efficiently and effectively.
c) Enhance job satisfaction of employees.
d) Maintain high morale and good human relations within the organization.

QUESTION 21.

‘Internal sources of recruitment are better than external sources of recruitment.’ Do you agree
with this statement? Give any two reasons in support of your answer.

Answer. Yes, I agree with this statement.

Advantages:
1. It will assist in developing high moral of employees.

2. The candidates already working in the organization can be evaluated more economically
as the expenditure is relatively less.

QUESTION 22.

State the benefits of employee’s training.

Answer.
Benefits to the organization
a) Economic operations: Trained employees use available resources efficiently and economically.
b) Increases productivity: It improves the quality and quantity of the production

Benefits to the employees:

a) Acquisition of new skills: A trained employee acquires new skills.

b) Higher Earnings: Trained employees can perform better and there by earn more superiors at
the actual work place
QUESTION 23.

The workers of a factory are unable to work on new machines and always demand for help of
supervisor. The Supervisor is overburdened with their frequent calls. Suggest the remedy.

Answer:
Workers of factory should be trained through Vestibule Training. Employees learn their jobs on
the equipment they will be using, but the training is conducted away from the actual work floor.
Actual work environment is created in a classroom and the employees use the same materials,
files and equipment. This is usually done when employees are required to handle sophisticated
machinery and equipment.

QUESTION 24.

Define training. How is it different from education?

Answer :
Training refers to the enhancement of skills, abilities and competence required for a specific job
profile. On the other hand, education refers to the process of improving the overall knowledge
and understanding of the employees. The following points highlight the difference between
training and education.

Basis of Training Education

Difference
Meaning Training implies increasing the Education implies increasing the
skills and abilities required to overall l knowledge and
perform a specific job. understanding of the employees.
Scope Training is a narrow concept and Education is a wider concept and
relates to development of relates to the overall development of
understanding relating to only a understanding.
specific job.
Focus It focuses on the goals of the It focuses on the individual goals.
organisation.
LONG ANSWER TYPE QUESTIONS (5 OR 6 MARKS)

QUESTION 25.

Describe briefly the steps involved in the process of staffing.

Answer.
1. Estimating Manpower Requirement:

• Drafting work force requirements in an organisation, defining the job related activities and
recruiting personnel’s with a specific set of skills, knowledge, qualification and experience.
• Work force analysis enable the enterprise to assess the number and type of employees
necessary for the completion of a work.

2. Recruitment:

• Recruitment may be defined as the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.
• Both internal and external sources may be used for searching employees.

3. Selection:
• It is the process of choosing and appointing the right candidates for right job in an organization
by conducting various exams, tests and interviews.
• It ensures that the organisation gets the best candidate.
• The selection process enhances the self-esteem and prestige of the selected candidates.

4. Placement and Orientation:

• Orientation is, thus, introducing the selected employee to other employees and familiarizing
him with the rules, regulations and policies of the organisation.
• Placement refers to the employee occupying the position or post for which the person has been
selected.

5. Training and Development:

• Systematic training helps in increasing the skills and knowledge of employees in doing their jobs
through various methods.
• Development involves growth of an employee in all aspects such as performance, knowledge
etc.

6. Performance Appraisal:
• Performance appraisal means evaluating an employee’s current or past performance as against
certain predetermined standards.
• Once an employee has undergone a training, his/ her performance is evaluated.
• It is concerned with continuous evaluation of the performance of employees in an organisation.
7. Promotion and Career Planning:
• Promotion means being placed in positions of increased responsibility.
• Promotion and career planning is very important to boost the morale of employees and
motivate them to utilize their full potential.

8. Compensation:
Compensation refers to all forms of payment made by an enterprise to their employees. E.g.
salaries, incentives, commission etc.

QUESTION 26.

What do you meant by ‘on the job training’? Explain any three methods of ‘on the job’ training.

Answer:
A) On the job training: Learning by doing by the subordinates under the supervision of superiors
at the actual work place.

B) Methods:
i. Apprenticeship Programme : Apprenticeship programmes put the trainee under the guidance
of a master worker. The trainee receives stipend while learning so that he/she can enjoy “earn
while you learn” scheme.

ii. Coaching: At lower levels, the coaching may simply consist of trainee observing his supervisor
to develop the basic skills necessary for operating machine. The trainee works directly with a
senior manager and the manager takes full responsibility for the trainee is coaching.

iii. Internship training: The educational institutes enters into a contract with business firms or
corporates for providing practical knowledge to its students by sending them to business
organizations for gaining practical experience.

iv. Job rotation: This kind of training involves shifting the trainee from one department to
another or from one job to another. Job rotation allows trainees to interact with other employees
facilitating future cooperation among departments.

QUESTION 27.

What is meant by recruitment? How is it different from selection?

Answer: Recruitment refers to the procedure of finding and stimulating the required candidates
to apply for a particular job. As against this, selection is the procedure of screening and choosing
the required candidates out of the gathered pool.
The following points highlight the difference between recruitment and selection.

Basis of Recruitment Selection

Difference
Meaning Recruitment refers to the Selection refers to the process of choosing the
process of finding and right candidate out of the gathered pool
instigating the required developed at the time of recruitment.
personnel for a job.
Sequence In the staffing process, In the staffing process, selection is at the third
recruitment is at the stage and succeeds recruitment.
second stage.
Employment The candidates gathered The candidates who successfully complete the
Contract under recruitment are selection process are offered an employment
not offered any contract by the organisation containing such
employment contract information as date of joining, terms and
from the organisation. conditions, etc.
Characteristic Recruitment process Selection process involves choosing only the
involves attracting as appropriate candidate and rejecting the non-
many persons as possible suitable ones.
for the job.

QUESTION 28.

What are the advantages of training to the individual and to the organisation?

Answer :
Training is an important aspect of any organisation. It aims at building the skills and abilities of
the individuals to perform a job. Training is an essential part of the job, which attempts at
improving the aptitude and knowledge of a person as per the job requirement. With the ever-
changing business environment, the complexity of the jobs has increased. Thereby, training has
become even more essential. The following are the highlighted benefits of training to the
employee and the organisation.

Benefits to the Employee

(i) Better Career Opportunities: Training enhances the skill and knowledge of the employees and
thereby, helps in improving their career prospects.

(ii) Earn More: By helping the individual to learn more it assist them to earn more. Training
enhances the individuals understanding and knowledge. Thereby, it improves their efficiency and
performance. As a result, it gives them a chance to earn more.
(iii) Less Accident Prone: Training attempts to make the employees more adept and efficient in
handling the machines. Jobs that require the employees to work with complex machines and in
more accident-prone areas need to emphasise strongly on training and development, as it helps
them in taking precautionary actions. Thus, it makes the employee less prone to accidents.

(iv) Self-Confidence: Development and training direct the individuals to work more efficiently
that in turn builds up required morale within the individuals. It increases their self-confidence
and self-reliance thereby, contributing to higher job-satisfaction.

Benefits to the Organisation

(i) Less Wastage: Training is a concept that involves systematic learning of work. It is a more
efficient way of learning than any hit and trial method. This leads to less wastage of time and
money. Thereby, it helps in optimum utilisation of resources.

(ii) Higher Profits: By developing the individuals and making them more efficient, training
enhances their productivity in work. Due to increase in both qualitative and quantitative
productivity, the profits of the company rise.

(iii) Managerial Efficiency: Training prepares the employees to face new challenges in different
situations. This helps them in building effective responses to various situations. Training also
equips the future managers to take precautionary step in case of emergency.

(iv) Reduced Absenteeism: Effective training helps in boosting the morale of the employees.
Thereby, it helps in reducing the rate of absenteeism and employee turnover.

(v) Effective Response: It helps in obtaining effective response to fast changing environment –
technological and economic.