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Class 12 Business Studies

Notes
CHAPTER – 6
STAFFING

Meaning

Staffing means putting people to jobs. It begins with human resource planning
and includes different other functions like recruitment, selection, training,
development, promotion and performance appraisal of work force.

Need and Importance of Staffing

1. Obtaining Competent Personnel: Proper staffing helps in discovering and

obtaining competent personnel for various jobs.

2. High Performance: Proper staffing ensures higher performance by putting

right person on the right job.

3. Continuous growth: Proper staffing ensures continuous survival and

growth of the enterprise.

4. Optimum utilization of human resources: It prevents under-utilization of

personnel and high labour cost.

5. Improves job satisfaction: It improves job satisfaction and morale of

employee.

Staffing As a Part ofHuman Resource Management (HRM)

• Staffing
• Function which all managers have to perform as all managers directly deal
with people
• Staffing refers to this kind of role played by all managers in small
organizations.
• As organizations grow and number of people employed increases, a
separate department called the human resource department is formed which
consists of specialists who are experts in dealing with people.
• In fact early definitions of staffing focused narrowly on only hiring people for
vacant positions. But today staffing is a part of HRM which encompasses not
only staffing but also a number of other specialized services such as job
evaluation, management of labour relations.
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• Human Resource Management

• Involves procuring, developing, maintaining and appraising a competent and
satisfied workforce to achieve the goals of the organization efficiently and
effectively.
• Its purpose is to enable every human being working in the organization to
make his best possiblecontribution..

PROCESS OF STAFFING

1. Estimating Manpower Requirement: It involves the following:

(a) Making inventory of current human resources in terms of qualification,
training & skills.
(b) Assessing future human resource needs of all departments.
(c) Developing a programme to provide the human resources. Job Analysis is
an intensive way of finding details related to all jobs.

2.Recruitment: It refers to identification of the sources of manpower

availability and making efforts to secure applicants for the various job
positions in an organization.

3. Selection: It is the process of choosing and appointing the right candidates

for various jobs in an organization through various exams, tests &interviews.

4. Placement and Orientation: When a new employee reports for duty, he is

to be placed on the job for which he is best suited. Placement is very
important process as it can ensure “Right person for right job”.
Orientation/Induction is concerned with the process of introducing a new
employee to the organization. The new employees are familiarized with their
units, supervisors and fellow employees. They are also to be informed about
working hours, procedure for availing leave, medical facilities, history and
geography of organization and rules/regulations relating to their wages etc.

5. Training and Development: Systematic training helps in increasing the

skills and knowledge of employees in doing their jobs through various
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methods.
Development involves growth of an employee in all respects. It is the process
by which the employees acquire skills and competence to do their present
jobs and increase their capabilities for higher jobs in future.

6. Performance Appraisal: It is concerned with rating or evaluating the

performance of employees. Transfers and promotions of the staff are based
on performance appraisal.

RECRUITMENT

(A) Recruitment: Recruitment may be defined as the process of searching for

prospective employees and stimulating them to apply for jobs in the
organization.

Sources of Recruitment
(A) Internal Sources
(B) External Sources

(A) Internal Sources of Recruitment

Internal sources refer to inviting candidates from within the organization.
Following are important sources of internal recruitment:

1. Transfers: It involves the shifting of an employee from one job to another,

from one department to another or from one shift to another shift.

2. Promotions: It refers to shifting an employee to a higher position carrying

higher responsibilities, prestige, facilities and pay.

3. Lay-Off: To recall the temporary worker for work is called Lay-Off, who
were temporarily separated from organization due to lack of work.

Advantages of Internal Sources Recruitment:

(1) Employees are motivated to improve their performance.
(2) Internal recruitment also simplifies the process of selection & placement.
(3) No wastage of time on the employee training and development.
(4) Filling of jobs internally is cheaper.

Limitation of Internal Sources

(1) The scope for induction of fresh talent is reduced.
(2) The employee may become lethargic.
(3) The spirit of competition among the employees may be hampered.

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(4) Frequent transfers of employees may often reduce the productivity of the
organization.

External Sources of Recruitment

When the candidates from outside the organization are invited to fill the
vacant job position then it is known as external recruitment. The common
methods of external sources of recruitments are:

1. Direct Recruitment: Under the direct recruitment, a notice is placed on the

notice board of the enterprise specifying the details of the jobs available.

2. Casual callers: Many reputed business organizations keep a data base of

unsolicited applicants in their office. This list can be used for Recruitment.

3. Advertisement: Advertisement in media is generally used when a wider

choice is required. Example– Newspapers, Internet, Radio, Television etc.

4. Employment Exchange: Employment exchange is regarded as a good

source of recruitment for unskilled and skilled operative jobs.

5. Campus recruitment and labour contractors can be used for the purpose.

Merits of External Sources

1. Qualified Personnel: By using external source of recruitment the

management can attract qualified and trained people to apply for the vacant
jobs in the organization.

2. Wider Choice: The management has a wider choice in selecting the

people for employment.

3. Fresh Talent: It provides wider choice and brings new blood in the
organization.

4. Competitive Spirit: If a company taps external sources, the staff will have
to compete with the outsiders.

Limitations of External Sources of Recruitment

1. Dissatisfaction among existing employees: Recruitment from outside

may cause dissatisfaction among the employees. They may feel that their
chances of promotion are reduced.
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2. Costly process: A lot of money has to be spent on advertisement therefore

this is costly process.

3. Lengthy Process: It takes more time than internal sources of recruitment.

Selection
Selection is the process of choosing from among the candidates from within
the organization or from outside, the most suitable person for the current
position or for the future position.

PROCESS OF SELECTION

The successive stages in selection process are:

1. Preliminary Screening: After applications have been received, they are

properly checked as regarding qualification etc. by screening committee. A list
of candidates to be called for employment tests made and unsuitable
candidates are rejected altogether.

2. Selection Tests: These tests include:

(a) Psychological tests which are based on assumption that human behaviour
at work can be predicted by giving various tests like aptitude, personality test
etc.

(b) Employment test for judging the applicant’s suitability for the job.

3. Employment Interviews: The main purpose of interview is:

(a) to find out suitability of the candidates.

(b) to seek more information about the candidate.

(c) to give the candidate an accurate picture of job with details of terms and
conditions.

4. Reference Checks: Prior to final selection, the prospective employer

makes an investigation of the references supplied by the applicant. He

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undertakes a thorough search into candidates family background, past

employment, education, police records etc.

5. Selection Decisions: A list of candidate who clear the employment tests,

interviews and reference checks is prepared and then the selected candidates
are listed in order of merit.

6. Medical/Physical Examination: A qualified medical expert appointed by

organization should certify whether the candidate is physically fit to the
requirements of a specific job. A proper physical exam will ensure higher
standard of health & physical fitness of employees thereby reducing
absenteeism.

7. Job Offer: After a candidate has cleared all hurdles in the selection
procedure, he is formally appointed by issuing him an Appointment Letter. The
broad terms and conditions, pay scale are integral part of Appointment Letter.

8. Contract of Employment: After getting the job offer, the candidate has to
give his acceptance. After acceptance, both employer and employee will sign
a contract of employment which contains terms & conditions, pay scale, leave
rules, hours of work, mode of termination of employment etc.
Nishant wants to set a unit in rural area where people have very few job
opportunities and labour is available at a low cost.

For this he wants four different heads for Sales, Accounts, Purchase and
Production. He gives an advertisement and shortlists some candidates after
conducting selection tests.

1. Identify and state the next three steps for choosing best candidates.

2. Also identify two values which Nishant wants to communicate.

Training: Training is the act of increasing the knowledge and technical skills
of an employee for doing a particular job efficiently. Both existing employees
and new employees get acquainted with their jobs and this increases job
related skills.

Benefits to the firm: Benefits to the employee:

1. Avoids wastage of time, effort and
money involved in the hit and trial method. 1. Improved skills an knowledge
2. ↑ productivity(quality + quantity)thereby so better career opportunities
leading to ↑ profits

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3. Equips future managers(to take over in 2. Better performance→ higher

emergencies) earnings
4. ↑ employee morale,↓ absenteeism and
turnover 3. Less accidents
5. response to fast changing environment
6. ↓ supervision, standardization of 4. ↑ satisfaction and morale of
procedure and safety of operations employees

Training Methods

(A) On the Job Method: It refers to the methods that are applied at the work
place, where the employee is actually working. It means learning while doing.
The following are the methods of On-the job training:

1. Apprenticeship Training: Under this, the trainee is placed under

supervision of an experienced person (master worker) who imparts him
necessary skills and regulates his performance. The trainee is given stipend
while learning so that he/she can enjoy “earn while you learn” scheme.

2. Internship Training: Under this method an educational institute enters into

agreement with industrial enterprises for providing practical knowledge to its
students by sending them to business organizations for gaining practical
experience.

3. Induction training is a type of training given to help a new employee in

settling down quickly into the job by becoming familiar with the people, the
surroundings, the job and the business. The duration of such type of training
may be from a few hours to a few days. The induction provides a good
opportunity to socialize and brief the newcomer with the company’s overall
strategy, performance standards etc. If carefully done, it saves time and cost
(in terms of effectiveness or efficiency etc.)

Training and Development

Training is concerned with imparting technical knowledge in doing a particular

job. But development is a wider process concerned with growth of an
individual in all respects. However, both are related processes; training helps
the employees in learning job skills whereas development shapes attitude of
the employees.

Comparison of Training and Development

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Basis Training Development

1. It means imparting skills and It means growth of an employee
Definition knowledge doing a particular job in all respects.
It is concerned with maintaining It seeks to develop competence
2.
and improving current job and skills for future
Purpose
performance. performance.
3. It is imparted through on the job It is imparted through off the job
Methods method. method.
The boss takes the initiative for
4. The individual takes the initiative
imparting training to his
Initiative for self growth and development.
subordinates.
5. Training programmes are Development takes place over a
Duration organized for short terms. large period of time.

Important Questions
1) “Staffing makes for higher performance by putting right person on the
right job”. Is this statement true or false? (1M)
Ans. True

2)“There is no need of human resource planning as so many people are

available in the market these days.” Do you agree with this statement?
Give reasons. (3M)
Ans. No, I don’t agree with this statement. There is a great need of man
power planning due to the following reasons. :
1. Organisation needs man power planning: To meet the demands of
changing job requirements due to change of technology.
2. Man power requires forecasting: Provides a basis of recruitment, transfer
and
training employees.

3) Human resource management is a part of staffing. Do you agree? (1M)

Ans. No.

4) “The present day human resource management is a broader

concept.” Explain (4M)
Ans. The present day human resource management includes the following
activities:
a. Helps the organization to achieve its goals
b .Employees the skills and knowledge of employees efficiently and

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effectively.
C .Enhance job satisfaction.
d. Maintain high morale and good human relations within the organization.

5) why is induction is not required in the internal source of recruitment.

(1M)
Ans. Because employees are already well familiar with the organization.

6) State the meaning of placement as a staffing function. (1M)

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

7) Describe briefly the steps involved in the process of staffing.( 5/6M)

Ans. Man power Planning: The organization estimate the total man power
requirement by considering all the departments of the organization.
Recruitment: The second step after man power planning is recruitment and
selection. Recruitment aims at attracting job applicants preposition in the
organization. Selection: Selection consists of making choice among
applicants. Placement and Orientation: It refers to placing the right person on
the right job.
Induction: it is concerned with the process of introduction of a new employee
to the
organization. Training and development: It is more accurately considered as a
process of skill formation and behavioral change. Performance appraisal
Promotion and career planning
Compensation

8) Name two websites which are commonly visited both by the

prospective employees and the organizations searching for suitable
people. (1M)
Ans.a) www.naukari.com; b) www.jobstreet.com

9) ‘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. (3M)
Ans. 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.

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10) Name the concept which relates to the following:

Ans. a)Searching of prospective candidates.
b) Streamlining the attributes of a person required for doing a job.
Ans. a. Recruitment b. Selection.

11) List the different types of tests used in selection process.

Ans. i. Intelligence test ii. Aptitude test iii. Personality test. Iv. Trade test
v. Interest test

12) What is meant by ‘Selection’? Explain any five steps involved in the
process of
selection of employees. (6M)
Ans. Selection is the process of carefully screening the candidates who offer
themselves for
appointment so as to choose the most appropriate person for the job.
Steps : 1. The preliminary screening : A brief screening interview is conducted
as the first
step in the selection process.
2. Selection test: Each candidate appears for employment test.
3. Employment Interview: Interview is a phase of testing on the basis of face
to face
interaction between the interviewer and the applicant.
4. Reference and background checking: Gather more information about the
candidates from indirect personal sources.
5. Selection decision: After candidates process the tests and interview final
decision for
selection is made after considering the view of concerned manager.
6. Medical Test: The selection process is not complete without the medical
test.
7. Job offer: Letter of appointment mentioning the date by which a candidate
has to report on duty is handed over to the appointee.
8. Contract of employment: It includes various details such as pay,
allowances, work rules etc.

13) Training and Development are one and the same thing. Do you
agree?(1M)
Ans. No they are different

14) Distinguish between training and development. (4M)

Ans. A)

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Training Development
Development involves improving the
It is used to add skills abilities of the
capacities and capability of the
workers
managerial personnel.
The term training is generally used
It is associated with the over all growth of
to impart specific skills among
the executives.
operative workers
it is to enable the employee to do It is to enable the overall growth of the
the job better Employee.
It is a job oriented process It is a carrier oriented process.

15) State the benefits of employee’s training.( 4M)

Ans. Benefits to the organization
a) Economic operations: Trained personal will make economic and efficient
use of resources.
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.

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

the job’ training. (5/6M)

Ans: 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: It is designed for higher levels of
skills. It ensures on the job training and is explained with classroom instruction
in a particular subject.
ii. Coaching: At lower levels the coaching may simply consist of trainee
observing his supervisor so as to develop the basic skills necessary for
operating machine.
iii. Internship training: Technical institutes and business organizations jointly
impart training
to their members.
iv. Job rotation: It is a method of training which serves the purpose of
employees’
development through provision of diversified training.

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QUESTIONS WITH DIFFERENT DIFFICULTY LEVELS

1. 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? (1M)
Ans. Staffing

2. It is recruitment, selection, development, utilization, compensation

and motivation of human resources of the organization. Give the name
of the concept mentioned here. (1M)

Ans: Human Resource Management.

3.It implies introducing the selected employee to other employees and

familiarizing him with the rules and policies of the organization. Name it.
(1M)
Ans: Orientation.

4. What is the next step after selection? (1M)

Ans: Placement and Orientation.

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

the term.(1M)
Ans: Recruitment.

6. These are run by the Government as a source of recruitment for

unskilled and skilled operative jobs. What is being referred here? (1M)

Ans: Employment exchanges.

7. Which type of personnel is recruited by management consultancy

firms?

Ans: Management consultancy firms help the organization to recruit technical,

professional and managerial personnel.

8. Hamish is working as a supervisor in a company. Due to his hard

work he is promoted to the post of Production Manager. Now the post of
supervisor is vacant and no one can be transferred or promoted to this
post. Name the source of recruitment the company will use to fill up this
post. State any three advantages of using this source of recruitment.
(4M)

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Ans: The Company will use external source of recruitment.

Advantages: i. Fresh talent ii. Wider choice iii. Qualified personnel

9.It is the process of identifying and choosing the best person out of a
number of prospective candidates for a job. Name it. (1M)

Ans: Selection.

10. Name the test which is used as a measure of individual’s potential

for learning new skills. (1M)

Ans: Aptitude test.

11. Which step in the process of selection helps the manager eliminate
unqualified or unfit job seekers based on the information supplied in the
application forms? (1M)

Ans: Preliminary Screening

12. what is formal, in-depth conversation conducted to evaluate the

applicant’s suitability for job called. (1M)

Ans: Employment interview.

13. Why is selection considered as negative process? (1M)

Ans: Because it is a process in which a person is selected and the others are
rejected.

14. 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 also.
(1M)

Ans: Aptitude.
Other Tests: a) Personality Test: These tests are used judge the
psychological makeup of a person.
b) Interest Test: These tests identify individual likes and dislikes in relation to
work.

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15.It is the process of increasing the knowledge and skills of an

employee for doing a particular job. Which process is referred to here?
(1M)

Ans: Training

16.Which of type of training is a joint programme of training in which

educational institutions and business firms cooperate? (1M)

Ans: Internship training

17. 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? (1M)

Ans: Apprenticeship programme

Question based on Values:

1. While selecting employees, an organization is not giving any priority

to disabled candidates, weaker sections in the society and even women.
Identify the values missing in the company’s selection process and also
suggest a remedy.

Ans. i. Social objectives are not followed.

ii. Gender biased.
iii. Inclusive employment policy is violated
iv. Company’s selection policy is not good.
Company should give equal opportunity to all the prospective candidates.

Important Questions
1. 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 accuracy?
Ans: Training

2. Name the sources of recruitment which involves shifting of an

employee form one job to another, without a substantive change in

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the responsibilities and states of the employee.

Ans: Transfers.

3. Enumerate any two activities of HRM which is not covered in staffing.

a) Handling grievances & complaints.
b) Social security & welfare of employee.

4. Give examples of any two off the job methods of training.

Ans: a) Case study b) Films.

5. What can be the two possible outcomes of the situation of

overstaffing?
Ans: a) Employee removal b) Transfer

6. Name the process of introducing the selected employees to

other employees & familiarly with the rules & policies of the
organization.
Ans: Orientation.

7. What is placement?
Ans: The employee occupying the position or post for which the person has
been selected.

8. Which method of training is suitable when employees are required

to handle sophisticated machinery?
Ans: Vestibule training.

9. A company is manufacturing paper plates & bowls due to local

festival it got an urgent order of extra 50000 plates bowls. Active which
methods of recruitment would you suggest .
Ans: Labour contractors

9. Name the concept related to searching for prospective candidates.

OR

What is pre requisite of selection?

Ans: Recruitment.

10. Why selection is called negative process?

Ans: Selection is considered as negative process because it involves

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rejection of unfit candidates and the number of rejected candidates is more

than the number of selected candidates.

11. What information we get through aptitude test?

Ans: Aptitude Test helps, the organization to know whether the employee has
capacity & talent to learn new skills

12. Which Test helps the company to know about the qualities & the
moral values of the candidate?
Ans: Personality Test.

13. Suppose you are the General Manager of Kapila & Co. Ltd. You
have been directed by the Directors of the company to select a
chartered accountant for the company. Explain the selection procedure
you will follow for the same.
Ans : Hint: To appoint the C.A. for the company the following steps will be
followed:
i) Preliminary screening.
ii) Selection Test
iii) Interview
iv) Background & reference
v) Selection Decision
vi) Medical Test
vii) Job Offer & Contract of employment.

14. Which source of recruitment is needed to bring new blood in

the organization ? Explain any three advantages & any two limitations of
this source.
Ans: Hint: External Source:
Advantages:
a) Wider Choice (b) Fresh Talent (c) Qualified candidates (d) Increases
competition
Limitations:
a) Lengthy & Expensive
b) Discouragement to present employees

15. Training is beneficial both for the organization as well s for

the employees.Explain any three benefits of training towards
the organization & any three towards the employees.
Ans: Yes, Training is beneficial to both organization & employees benefits to
organization

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• Systematic Learning
• Employee productivity
• Reduces absenteeism & Employee turnover.
• Benefits to employees
• Lead to better career.
• Help in earn more.
• Increase the satisfaction.

16. The worker 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.
Ans: The problem can be removed by giving necessary training to the
workers- A coaching or vestibule training can be explained.

Important Questions

1 MARK QUESTIONS

Q1. “One helps in performing job better and is job oriented while other leads
to overall growth of an employee and is career oriented.” Name the two
concepts. [1. Training, 2. Development]

Q2. Why is selection considered to be a negative process?

Q3. State one objective of Preliminary screening.

Q4. What do you mean by ‘On the Job Training’?

3-6 MARKS QUESTIONS

1. An accountant is sent to learn the new software for accounting to prepare

the books of accounts faster and accurately. He was further sent for
orientation to improve his motivational and conceptual skills.

(a) Identify and explain the two concepts explained above.

(b) Differentiate these concepts on the basis of suitability, method used and
nature. (5)

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2. Under this method employees learn by doing. Employees are trained while
they are performing the job and senior worker or mentor provides them
technical knowledge. But the biggest disadvantage of this method is wastage
of material and accidents.

(a) Identify the method of training stated in above lines.

(b) Explain any two techniques used in above said method of training. (6)

3. Education department of Delhi is constantly trying to provide quality

education to children studying in government schools. For this purpose
education department organize seminars and conferences every year to
improve teacher’s conceptual and motivational skills.

(a) Identify the method of training stated in above lines.

(b) Explain any technique used in above said method of training with its
advantages and disadvantages. (4)

4. XYZ Ltd. is setting up a new plant for manufacturing jute bags. For its new
plant it needs highly trained and motivated work force. To recruit competent
middle level officials, HR manager of XYZ Ltd. went to different colleges and
universities and to recruit lower level workforce he puts a notice on the gate of
company about the requirements of the firm. Identify and explain the sources
of recruitment referred in the above paragraph.(5)

5. A company wants to expand its business and for this purpose company is
preparing database of its prospective employees. So whenever it gets
application from any applicant, HR manager tells them that as and when
company required his/her services, he will be called. Its advantage is that at
the time of need, a suitable applicant out of the database can be called for
interview. In this way company can save its expenses on advertisement and
can save time also.

(a) Identify and explain the source of recruitment referred in above paragraph.

(b) State any two merits and demerits of this source. (5)

6. Geetu Ltd. is a big organization having various departments in it. In its

marketing department number of employees is much more than requirement
whereas, in purchase department some of the posts are lying vacant and
there is shortage of staff. Advise the HR manager of the company as to what

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method he should follow to balance the demand of employees in both

departments. Give arguments in support of your answer. (3)

7. Staffing is an important function of management in all organizations. ”Why?

Explain any four reasons.

8. “Internal sources of recruitment are considered better than external

sources”. Do you agree? Give any four reasons in support of your answer. (5)

9. The workers of a factory are unable to work on new machines and frequent
accidents occur while working. Their wastage rate and labour turnover rate is
much higher than other factories. They always demand or help of supervisor.
Suggest the remedy with proper advantages. (6)

10. ‘Recruitment is called as a positive process whereas selection is called as

negative.” Why? Differentiate between these two. (4)

11. Explain the procedure for selection of employees. (6)

Q12. Manu a Chief Engineer in a Co., using highly sophisticated machines

and equipments, wants that every employee should be fully trained before
using those machines and equipments. Suggest and describe the best
method of training that Manu can use. [Vestibule Training]

Q13. Ramesh is working under the guidance of Harish, a Carpenter, for the
last three years to learn the different skills of this job. Name and explain the
method of training Ramesh is under-going. [Apprenticeship Training]

Value Based Questions

Q.1 A personnel manager while selecting new employees appoints only

those persons who fulfills his personal requirement directly or
indirectly. Which values are violated here?
Ans. i) Promotion to nepotism.

ii) Instigation to corruption.

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iii) Selection of inefficient employees.

iv) Dissatisfaction in efficient members.

Q.2 In an organization the female employees are getting promotion late

as compared to male employees. Which value is missing here?
Ans. i) Not obeying the right of equality.
ii) Less importance to women employees.

Q.3 An employee has been terminated due to a small mistake without

hearing him, while the other one was not terminated on the same
mistake. Which value has been neglected here?
Ans. i) Biasness

ii)Biased Behaviour.

iii) Misuse of rights.

iv) Insecurity and groupism in employees.

Q.4 An automobile Company runs a factory in a backward area. It has

opened a training center to train the people. Which value has been kept
in mind here?
Ans. i) Development of Backward areas.

ii) Helpful in availing trained employees.

iii) Increase in productivity and boosting the morale of employees.

iv) Increase in employment opportunities.

Q.5 An organization places an advertisement for employment

mentioning some terms there in. those terms are not followed during
selection of employee. Which values are ignored here?
Ans. i) Violating the rules and conditions.

ii) False advertisement.

Q.6 A production manager pays less than the minimum wages and gets
their signatures on minimum wages. Which values are not being
followed by him?

Ans. i) Disobeying the law by not giving minimum wages.

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ii)To take signature on minimum wages is fraud.

iii) Exploitation of workers.

NCERT

1. What is meant by Staffing?

Sol. Staffing is the process of finding the right people for the right job because only the right people can take a
business firm to the top level. It provides an able solution to the drastic Unemployment problem faced by the
country. For the success of an enterprise, it is necessary to fill various positions with the right kind of people.
Basically, staffing fills the vacant positions as shown in the organization structure. The role of the Human
Resource Manager does not end with the filling up of the vacant positions rather he has to ensure proper
orientation and training for the selected candidates. The ability of a business firm to achieve its objectives &
goals depends upon the quality of its human resources. “The staffing function pertains to the recruitment,
selection, development, training, and compensation of subordinate managers”. ............ Theo Haimann.

2. State the two important sources of recruitment.

Sol. There are two sources of recruitment:

• Internal- It proceeds through transfer and promotion

• External- It proceeds through direct recruitment, campus recruitment, advertisement,
employment exchanges, casual callers, web publishing etc.

3. 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. (Hint: training)

Sol. The remedy in the given situation is to provide training to the employees on dummy machines in real life like
situations under proper supervision and then to make them work on actual machines. This type of training is
called vestibule training.

4. 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? (training)

Sol. The workers must be trained first and made to practice on dummy machines and then they should focus on
real projects. In other words, proper training especially vestibule training should be given to the workers
regarding the job.

5. Workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit of

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engineer is made which causes high overhead charges. How can this problem be removed.

Sol. The Suggestions to overcome the problem are:

i. Proper training should be provided to the workers.

ii. Off the job training methods are more appropriate.
iii. Workers should be motivated to acquire new skills.
iv. Supplier of machines can be requested to provide training to the workers

This type of training is called Apprenticeship training . It is long-term training which is undertaken to attain
complete proficiency. The trainee is required to work with an expert for a specific period of time. The expert
imparts complete theoretical and practical training.

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

Sol. (1) Recruitment means inducing or attracting more and more candidates to apply for vacant job positions in
the organisation. In other words, recruitment means making available persons to fill different vacant posts in
the organisation. Efforts are made in this process to ensure that more and more people submit applications so
that selection becomes easy. External sources of recruitment mean to invite applications for filling up the
vacancies from candidates outside the organisation. According to Filippo, “Recruitment is the process of
searching for prospective employees and stimulating them to apply for jobs in the organization”.The main
purpose of inviting large number of candidates is to ensure that there is high possibility of selecting the right
potential candidate. Advertisement is the part of recruitment process which plays important role in finding the
possible candidates for a job.
(2) Difference between Recruitment and Selection:
Basis Recruitment Selection
It is a process of screening and selecting
It is a process of searching suitable
Meaning the most eligible candidates and offering
candidates to fill up vacant jobs position.
them jobs.
Recruitment proceeds the staffing Selection always starts where recruitment
Stage
function. ends.
Recruitment is a positive process as Selection is a negative process as more
Nature more and more candidates are induced to candidates are rejected than the number
apply for the job. of selected candidates.
Contract of Selection involves contract of service
There is no contractual relation created.
service between employee and employer.
Thus, recruitment is a process of inducing the people to apply for the job in the organisation while selection
refers to choosing the most suitable candidate to fill the vacant job position.

7. An organization 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 into the selection process?

Sol. In order to ensure that candidates who are reliable, are selected, the company may incorporate relevant
clauses in the Contract of Employment. The contract may involve all the rules, regulations, disciplinary
procedures, job duties, penalties etc. to ensure secrecy by employees with regard to information regarding the

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clients or the organisation.

8. 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.

Sol. In the given scenario, company should approach labour contractors. This is because the production of paper
plates and bowls require low skilled workers or labourers which can be fulfilled by labour contractors.
Labour contractors maintain a close contact with labourers and other workers and make the right number of
workers available at short notice.

9. Distinguish between training and development.

Sol. The distinction between training and development:

TRAINING DEVELOPMENT
It is a process to increase both knowledge and skill. It is a learning process.
The term training is generally used to impart specific It is associated with the overall growth
skills among operative workers. of the employees.
The scope of training is limited. It is just a subset of The scope of development is broad.
development. The scope of learning is less in training. Training is just a subset of it.
It is a job oriented process It is a carrier oriented process.

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

Sol. Internal sources of recruitment are considered to be more economical because it saves recruitment costs and
training costs as the recruitment is carried out from the existing employees who are well versed with the
functioning of the organization. Existing employees need less training and being an inhouse there is no need
to advertise the vacant job in newspaper or other media. It saves advertisement expenditure also.

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

Sol. Staffing is an important function of management as it takes care of the manpower requirement of any
organisation. In today’s environment with rapid changes taking place in technology, size of the organisations,
etc. finding the right people for the job becomes critical. In such a scenario, proper staffing process plays an
important role in the organisations.
Following are the highlighted benefits of staffing in the current world scenario.

i. Finding Competent Personnel: Staffing helps in finding and choosing the right
personnel required for a job.
ii. Improves Efficiency: By ensuring that right people are placed for right jobs, the overall
efficiency and performance increases.
iii. Growth of the Organisation: It ensures survival and growth of the organisation by
appointing efficient and competent employees for various jobs.

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iv. Optimum Utilisation of Human Resources: Through proper manpower planning,

staffing prevents over-utilisation or under-utilisation of manpower. In addition, it avoids
interruption in working efficiency by suggesting, in advance if there is any unfilled job.
v. Job Satisfaction: Compensation and fair rewards given to the employees provide them
self-confidence and job-satisfaction. It encourages them to work diligently and give
their best to the organisation.

12. “Human Resource Management includes many specialized activities and duties. State any four such
activities.

Sol. Human Resource Management includes many specialized activities and duties:

i. Recruitment of qualified people at various suitable job positions.

ii. Identifying job requirements after analyzing the needs of the organization.
iii. Formulation of compensation and incentive policies for the employees during work in
order to motivate them.
iv. Training to employees for better performance and development of their abilities and to
make them effective and efficient.

13. Explain the process of selection of employees.

Sol. Different organisations adopt different processes of selection. In small organisations it is brief but in large
organisations it is extensive. Following are the main steps of the selection process adopted by large
organizations:

i. Preliminary screening: In this first step, all the applications are scrutinized. It helps the
manager to eliminate those applicants who are not suitable for the current job. Such
screening helps m rejecting unfit job seekers by analyzing the information supplied in
the application form.
ii. Selection tests: Through various tests, ability and skill of the candidates are evaluated.
These tests are divided into the following three categories:
a. Proficiency tests: In this test, the candidate's ability and skill manifested in an
examination are verified. Here, special attention is paid to see the correctness of
the ability and skill as emphasized by the applicant.
b. Psychological tests: Some selection tests are of a psychological nature.
Objectives of psychological tests are to examine the mental ability, interest in
work, maturity, etc of the candidates.
c. Other tests: Main objective of this test is to know the understanding of the
candidates, his communication ability, his mental maturity, writing ability,
alertness, etc.
iii. Employment interview: A job interview is an interview consisting of a conversation
between a job applicant and a representative of an employer which is conducted to
assess whether the applicant should be hired. Having successfully cleared all the tests

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related to employment by the candidate, he is called for the final interview. The
objective is to judge the personality of the candidate, his way of talking, his conduct and
temperament, his interest, the presence of mind and maturity, etc.
iv. Reference and background checks:
v. Selection decision: Applicants who clear selection tests, employment news, and
reference checks are selected. Before taking the final selection decision, the opinion of
the concerned manager is sought.
vi. Job offer: After successfully clearing, the job offer is given to the selected candidates
for the job. A date is mentioned in the appointment letter, from which one has to report
for the duty.
vii. Contract of employment: After the acceptance of the job offer by a selected candidate,
he becomes an employee of the organization. In this phase, the appointee signs various
documents. The main document among them is the attestation form in which the
detailed description of the employee is provided, which he himself attests This can be
used at the time of need in the future. Apart from this, a written contract of employment
is framed in which the following information is provided

a. Job title
b. Rate of remuneration
c. Working hours
d. Leave rules
e. Grievance removal procedure

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

Sol. Training is an unavoidable expense. But training must be provided to the employees, as it will benefit both
organisation and employees. Advantages of training to the individual and to the organization are discussed
below:

1. Advantages to Organization
i. Systematic learning: Training is a systematic learning which improves
knowledge and skills of employees. It helps in reducing the wastage of efforts
and money.
ii. Higher profits: Training helps in increasing the efficiency and productivity of
the workers which lead to high quality products and higher profits.
iii. Develops future managers: Training plays important role in developing the
future managers who can manage the enterprise in case of emergency.
iv. Reduces absenteeism: Training provides motivation and increases employee
morale. It also helps in reducing the absenteeism.
v. Effective response to fast changing environment: For the survival and growth
of an enterprise it is important to perform according to the needs of changing
environment. Thus, training helps in obtaining effective response to fast
changing environment.
vi. Increased efficiency of employees: An effective training programme can make
the employees of the company work efficiently. With training people gain

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confidence and this confidence is seen in the output and results.

vii. Reduced supervision: An employee needs to be supervised when he works.
When the employee has got sufficient training the amount of supervision
required is less. This reduces the workload of the supervisor.
2. Advantages to Individual

i. Better career: Training improves skills and knowledge of employees and it

leads to better career of the individual.
ii. More earning: Training plays important role in increasing the performance of
employees. Increased performance by the individual helps him to earn more.
iii. More efficient: Training makes the employee more efficient and more technical.
They can handle any machine easily. Thus, less prone to accidents.
iv. Increases Morale of employees: Training increases the satisfaction and morale
of employees.

15. Kaul Consultants has launched www.naukaripao.com exclusively for senior management professionals.
The portal lists out senior-level jobs and ensures that the job is genuine through the rigorous screening
process.

i. State the source of recruitment highlighted in the case above.

ii. State four benefits of the above-identified source of recruitment.

Sol. i. The source of recruitment highlighted in the case above is external source of
recruitment. The consultants have launched a website and advertise for senior
level posts through the website.
ii. The benefits of the external source of recruitment are as follows:-
a. Quality talent- By advertisement for such senior level jobs, the company will be
able to attract qualified and skillful people who have experiences in this field.
b. Wider Choice- When vacancies are advertised, it attracts a large number of
applicants all over the place. So the organisation can choose the best skillful
people.
c. Fresh Talent- The external source enables the organisation to get the benefit of
fresh blood and modern ideas. Also it enables the organisation to select best
talented staffs for their jobs, thereby reducing the dependence on the existing
staffs.
d. Competitive Spirit- When fresh talents are selected as new employees, the
existing staff will compete even harder with the new talents to prove their worth.

16. 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 workforce. You have been retained by

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the company to advise it in this matter. While giving answers keep in mind the sector the company is
operating.
Questions:

i. Outline the process of staffing the company should follow.

ii. Which sources of recruitment the company should rely upon. Give reasons for your
recommendation.
iii. Outline the process of selection the company should follow with reasons.

Sol. i. The process of staffing which the Xylo Limited should follow is as follows:
a. Identify and estimate the number and the kind of personnel required for the
proposed set up. This shall include workforce and workload analysis.
b. Look out for suitable candidates to fill the job vacancies and persuade them to
apply for the same by advertising in various media.
c. Choose the right candidate through a rigorous selection process.
d. Make the selected employees comfortable and familiar with the working
environment by providing him with suitable induction training.
e. Train the employees as per the requirements of the job.
f. Assess the performance of the employees against the predetermined standards
and provide feedback.
g. Plan the career path of the employees and place the employees who are doing
well at higher level in the hierarchy and position.
h. Provide suitable compensation to the employees. The compensation should be
commensurate with the talent and the task performed.
ii. The company should rely upon external sources of recruitment as it needs technically
qualified and motivated workforce to attain its goal. As the company is setting up a new
plant in a new region, candidates from the local area would be more suitable as they
would be familiar with the working conditions, problems faced, etc. in the local region.
iii. The following selection process would be used.

a. Screen the candidates and eliminate those who do not fulfill the basic criteria
and qualifications as per the job requirements.
b. Judge the candidate on the basis of different selection tests such as aptitude test,
intelligence test and personality test.
c. Conduct a personal interview involving a direct and face to face conversation
between the manager and the candidate which would further help in judging the
overall suitability of the employee according to the job requirement.
d. Conduct a background check of the candidate taking references from person
known to the candidate, like previous employers, etc. This shall help in
collecting information about the background, financial condition, integrity etc of
the candidate.
e. The candidates selected may also be required to undergo medical examination to
ensure their physical and mental fitness.
f. If the candidate is found suitable provide a job offer confirming that he/she has
been selected. An employment contract mentioning the terms and conditions of

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the employment should be prepared and entered into between the employer and
the candidate.

17. 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. Questions

i. As an HR manager, what problems do you see in the company?

ii. How do you think it can be resolved and what would be its impact on the company?

Sol. i. The problems that will show up in the company are as follows:-
a. Lack of skilled employee
b. Unable to provide the best solutions to the clients.
c. Unsatisfactory maintenance of data
ii. The ways in which the problems can be solved are as follows:-

a. Proper hard skills training will be implemented.

b. The proper database will be maintained by the company to improve the
maintenance of data.
c. A close interaction between the superior and the new employees.

If the proper training is given to the employees then they will perform according to the expectations of the
company and the clients will get timely solutions. The efficiency and productivity of the company will be
increased thereby increasing the profit of the organization.

18. 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 Resources Department.
Questions:

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 organization?

Sol. a. Ms Jayshree is supposed to carry out staffing function in the organisation. The functions
which she has to perform are the following:
i. Prepare Job description
ii. Recruitment

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iii. Arranging training programmes

iv. Providing good incentives and suitable compensation
b. The problems that may occur are as follows:

i. Shortage of skilled workers

ii. Demand of high salary may increase
iii. Some workers may leave the organisation after some time ie Increased employee
turnover
c. Steps that she should take to perform the job effectively:-

i. She should instruct her subordinates to interact and assist the new employee
ii. She should consult the experts and understand the policies of her rival
organisation
iii. She should make attractive salary, policies and incentives
iv. She should look for all possible sources of recruitment
d. Ms. Jayshree is the Human Resource Manager of her company. She has to ensure that
the right person is placed at the right place and for the right job. She should also look
forward to achieving all the goals and set new policies and targets. It is also her
responsibility to maintain a healthy working environment in her organisation.

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