NCERT Solutions for Class 12 Business Studies Business Studies I Chapter 6: Staffing

Chapter at a glance

Exercises – Very Short Answer Type

Question VSA – Q1

What is meant by staffing?

Answer

Staffing is the managerial function of filling and keeping filled the positions in the organisation structure with the right kind of people. It includes estimating manpower requirements, recruitment, selection, placement, training, development, compensation and performance appraisal.

Staffing is filling and keeping filled the positions in the organisation with the right people through recruitment, selection, training, development, appraisal and compensation.

Question VSA – Q2

State the two important sources of recruitment.

Answer

1. Internal sources – transfers and promotions within the organisation.
2. External sources – advertisement, employment exchange, placement agencies, campus recruitment, etc.

Internal sources (transfers, promotions) and external sources (advertisement, campus recruitment, placement agencies, etc.).

Question VSA – Q3

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

Training – the workers should be trained to operate the new machines, which will increase their skills and reduce dependence on the supervisor.

Provide training to the workers on the new machines.

Question VSA – Q4

The quality of production is not as per standards. On investigation it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the quality of production to meet the standards?

Answer

Training of workers in the proper operation of machinery will improve skills, reduce wastage and errors, and raise quality to the standard.

Training the workers in proper operation of the machines.

Question VSA – Q5

The workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit of engineer is made which causes high overhead charges. How can this problem be removed?

Answer

By vestibule training – workers are trained on the same (or similar) equipment set up in a separate area away from the actual work floor, so they learn without disturbing production; this reduces idle time and the need for the engineer’s visits.

Vestibule training on similar hi-tech machines in a separate training area.

Exercises – Short Answer Type

Question SA – Q1

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

Answer

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

Recruitment is searching for and attracting candidates to apply (positive process); selection is choosing the best among them (negative process) and comes after recruitment.

Question SA – Q2

An organisation provides security services. It requires such candidates who are reliable and don’t leak out the secrets of their clients. What steps should be incorporated in selection process?

Answer

1. Selection tests – especially personality tests and intelligence tests, to judge emotional stability, integrity and judgement.
2. Employment interview – an in-depth interview to assess honesty and attitude.
3. Reference and background checks – verifying previous employment, character, police records and references. This is the most important step for reliability.
4. Medical examination – for physical fitness.

Personality and intelligence tests, an in-depth interview, and especially thorough reference and background (police and past-employer) checks, followed by medical examination.

Question SA – Q3

A company is manufacturing paper plates and bowls. It produces 1,00,000 plates and bowls each day. Due to local festival, it got an urgent order of extra 50,000 plates and bowls. Explain the method of recruitment that the company should adopt in the given circumstances to meet the order.

Answer

The company should use external sources that provide workers quickly for a short period:

1. Casual callers / direct recruitment – a notice at the factory gate; workers are hired on a daily-wage basis. This is cheap and quick, suitable for unskilled/semi-skilled temporary jobs.
2. Labour contractors – they supply workers quickly for short-term needs.

Direct recruitment (notice at the factory gate / casual callers) or labour contractors, to get temporary workers quickly and cheaply.

Question SA – Q4

Distinguish between training and development.

Answer

Training improves skills for a specific job (short-term, job-oriented); development is the overall, long-term growth of an employee (career-oriented) and includes training.

Question SA – Q5

Why are internal sources of recruitment considered to be more economical?

Answer

1. No cost of advertising and searching – vacancies are filled from within.
2. Lower training cost – employees already know the organisation, its culture and procedures; induction is not needed.
3. Selection is simpler – the employer already knows the candidates’ performance records.
4. Less time is taken.
5. Reduces employee turnover and costs of hiring new staff.

They save advertising, search and selection costs, need less training and induction, and take less time.

Question SA – Q6

‘No organisation can be successful unless it fills and keeps the various positions filled with the right kind of people for the right job.’ Elucidate.

Answer

This statement explains the importance of staffing:

1. Obtaining competent personnel – helps discover and obtain competent people for various jobs.
2. Higher performance – putting the right person in the right job improves performance.
3. Continuous survival and growth – succession planning ensures the business continues.
4. Optimum utilisation of human resources – avoids over-manning and under-manning.
5. Improves job satisfaction and morale – fair appraisal and rewards motivate employees.

Since people perform all activities, an organisation cannot achieve its objectives without the right people in the right jobs.

Staffing ensures competent people, higher performance, continuity and growth, optimum use of human resources and job satisfaction – so success depends on having the right people in the right jobs.

Exercises – Long Answer Type

Question LA – Q1

‘Human resource management includes many specialized activities and duties.’ Explain.

Answer

Human resource management covers:

1. Recruitment – searching for qualified people.
2. Analysing jobs – collecting information about jobs to prepare job descriptions and specifications.
3. Developing compensation and incentive plans.
4. Training and development of employees for efficient performance and career growth.
5. Maintaining labour relations and union–management relations.
6. Handling grievances and complaints.
7. Providing social security and welfare to employees.
8. Defending the company in lawsuits and avoiding legal complications.
9. Performance appraisal, promotion and career planning.

HRM includes recruitment, job analysis, compensation and incentives, training and development, labour relations, grievance handling, social security and welfare, legal matters, and performance appraisal and career planning.

Question LA – Q2

Explain the procedure for selection of employees.

Answer

1. Preliminary screening – eliminating unqualified or unfit applicants on the basis of application forms and preliminary interviews.
2. Selection tests – intelligence, aptitude, personality, trade and interest tests.
3. Employment interview – in-depth conversation to evaluate suitability and provide information to the candidate.
4. Reference and background checks – verifying information from previous employers, references, etc.
5. Selection decision – final decision from among candidates who pass tests, interviews and checks.
6. Medical examination – to ensure physical fitness.
7. Job offer – a letter of appointment stating the date of joining.
8. Contract of employment – documents such as attestation form; terms and conditions of employment are signed.

Preliminary screening, selection tests, employment interview, reference and background checks, selection decision, medical examination, job offer and contract of employment.

Question LA – Q3

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

Answer

Benefits to the organisation

1. Systematic learning – less wastage of efforts and money than trial and error.
2. Higher productivity – better quantity and quality of output.
3. Prepares employees for future managerial positions.
4. Higher morale and lower absenteeism and employee turnover.
5. Faster response to changes in technology and environment.

Benefits to the individual

1. Better career opportunities – improved skills and knowledge.
2. Higher earnings through better performance.
3. Fewer accidents – more efficient handling of machines.
4. Greater satisfaction and morale.

To the organisation: less waste, higher productivity, future managers, higher morale and lower turnover, faster response to change. To the individual: better careers, higher earnings, safety and satisfaction.

Question LA – Q4

Kaul Consultants have launched www.naukaripao.com exclusively for senior management professionals. The portal lists out senior level jobs and ensures that the job is genuine through rigorous screening process. a. State the source of recruitment highlighted in the case above. b. State four benefits of the above identified source of recruitment.

Answer

a. External source – Web publishing (internet/job portals); it also uses the services of management consultants/placement agencies for senior positions.

b. Benefits

1. Wide choice – a large pool of qualified candidates can be reached.
2. Fresh talent with new ideas joins the organisation.
3. Saves time and cost – screening is done by the portal; applications can be received online quickly.
4. Specialised search for senior and technical positions; genuineness ensured through screening.
5. Competitive spirit among existing staff.

1. External source – web publishing (job portal run by consultants). b. Wide choice, fresh talent, saving of time and cost, and specialised screening for senior posts.

Question LA – Q5

A company, Xylo limited, is setting up a new plant in India for manufacturing auto components. India is a highly competitive and cost effective production base in this sector. Many reputed car manufacturers source their auto components from here. Xylo limited is planning to capture about 40% of the market share in India and also export to the tune of at least ₹ 50 crores in about 2 years of its planned operations. To achieve these targets it requires a highly trained and motivated work force. You have been retained by the company to advise it in this matter. a. Outline the process of staffing the company should follow. b. Which sources of recruitment the company should rely upon. Give reasons for your recommendation. c. Outline the process of selection the company should follow with reasons.

Answer

a. Staffing process

1. Estimating manpower requirements – workload and workforce analysis for each department of the new plant.
2. Recruitment of suitable candidates.
3. Selection of the best candidates.
4. Placement and orientation – putting people in suitable jobs and introducing them to the company.
5. Training and development – technical training for precision manufacturing and export quality.
6. Performance appraisal – regular evaluation.
7. Promotion and career planning – to retain talent.
8. Compensation – competitive pay and incentives for motivation.

b. Sources of recruitment – as it is a new plant, internal sources are not available; it should use external sources:

• Campus recruitment (ITIs, polytechnics, engineering and management colleges) for trained young engineers and technicians.
• Placement agencies and management consultants for senior and specialised posts.
• Advertisement and web publishing for a wide choice.
• Employment exchanges and direct recruitment for unskilled and semi-skilled workers.

Reasons: a wide choice, fresh talent, qualified personnel and competitive candidates to meet high quality and export targets.

c. Selection process

1. Preliminary screening – to eliminate unsuitable applicants.
2. Selection tests – trade tests for technical skills, aptitude and intelligence tests.
3. Interviews – to judge attitude and communication skills.
4. Reference checks – to ensure reliability.
5. Selection decision – by the concerned managers.
6. Medical examination – the auto component industry needs physically fit workers.
7. Job offer and contract of employment.

Reasons: to get technically competent, motivated workers who can deliver quality for a competitive, export-oriented sector.

1. Estimate manpower, recruit, select, place and orient, train, appraise, promote and compensate. b. External sources – campus recruitment, placement agencies/consultants, advertisement/web, employment exchanges – since it is a new plant needing skilled people. c. Screening, trade/aptitude tests, interviews, reference checks, selection decision, medical exam, job offer and contract.

Question LA – Q6

A major insurance company handled all recruiting, screening and training processes for data entry/customer service representatives. Their competitor was attracting most of the qualified, potential employees in their market. Recruiting was made even more difficult by the strong economy and the ‘jobseeker’s market.’ This resulted in the client having to choose from candidates who had the ‘soft’ skills needed for the job, but lacked the proper ‘hard’ skills and training. a. As an HR manager what problems do you see in the company? b. How do you think it can be resolved and what would be its impact on the company?

Answer

a. Problems

1. Ineffective recruitment – unable to attract qualified candidates; competitors are more attractive.
2. Shortage of skilled candidates in a jobseeker’s market.
3. Candidates lack hard (technical) skills – data entry speed, computer and product knowledge.
4. Possibly unattractive compensation and employer image.
5. Burden of doing all HR functions in-house.

b. Resolution and impact

1. Improve recruitment – use more sources: campus recruitment, job portals, placement agencies, employee referrals; build the employer brand.
2. Offer competitive pay and incentives and career growth.
3. Select candidates with good soft skills and provide systematic training (on-the-job, vestibule or computer-based) in hard skills.
4. Outsource part of recruitment/screening to specialised agencies.
5. Retention measures – good work environment and recognition.

Impact: a skilled, motivated workforce; better customer service; higher productivity; lower turnover; and a better competitive position.

1. Weak recruitment against competitors, shortage of skilled applicants, candidates lacking hard skills, possibly poor pay and image. b. Widen recruitment sources, offer competitive pay, select for soft skills and train in hard skills, use agencies and improve retention – leading to better service, productivity and competitiveness.

Question LA – Q7

Ms. Jayshree recently completed her Post Graduate Diploma in Human Resource Management. A few months from now a large steel manufacturing company appointed her as its human resource manager. As of now, the company employs 800 persons and has an expansion plan in hand which may require another 200 persons for various types of additional requirements. Ms. Jayshree has been given complete charge of the company’s Human Resource Department. a. Point out, what functions is she supposed to perform? b. What problems do you foresee in her job? c. What steps is she going to take to perform her job efficiently? d. How significant is her role in the organisation?

Answer

a. Functions

• Manpower planning for the 200 additional people.
• Recruitment and selection.
• Placement and orientation.
• Training and development.
• Performance appraisal.
• Compensation, incentives and welfare.
• Promotion and career planning.
• Maintaining labour relations and handling grievances.
• Legal compliance and safety.

b. Problems foreseen

1. Finding skilled workers for a technical steel plant.
2. Managing a large workforce and trade unions.
3. Integrating new employees with the old.
4. Maintaining safety in a hazardous industry.
5. Her limited practical experience.
6. Budget constraints and resistance to change.

c. Steps

1. Carry out workload and workforce analysis to estimate needs.
2. Use suitable sources – internal promotion, campus recruitment, employment exchanges, contractors.
3. Design a sound selection procedure with trade tests and medical checks.
4. Arrange induction and training (vestibule, on-the-job, safety training).
5. Introduce fair appraisal and incentive systems.
6. Maintain communication and good relations with unions and employees.
7. Ensure compliance with labour laws and safety norms.

d. Significance of her role

• She ensures the right people in the right jobs for the expansion.
• She helps higher productivity, continuity and growth.
• She keeps morale and job satisfaction high.
• She promotes industrial peace and the optimum use of human resources.

The success of the expansion depends greatly on her.

1. Manpower planning, recruitment, selection, placement, training, appraisal, compensation, career planning and labour relations. b. Shortage of skilled staff, union and safety issues, integration, her inexperience. c. Workforce analysis, suitable sources, proper selection, induction and training, fair appraisal and incentives, good communication and legal compliance. d. Her role is vital – right people in right jobs, productivity, growth, morale and industrial peace.

Topic checklist

• ☒ Meaning and importance of staffing; HRM (VSA 1; SA 6; LA 1, 7)
• ☒ Staffing process (LA 5)
• ☒ Recruitment and sources (VSA 2; SA 1, 3, 5; LA 4, 6)
• ☒ Selection process (SA 2; LA 2, 5)
• ☒ Training and development; methods (VSA 3–5; SA 4; LA 3)

Total questions answered: 18 of 18