NCERT Solutions for Class 12 Business Studies Chapter 6 Staffing

NCERT
SOLUTIONS
CLASS - 12th

aglase .co

Class : 12th

Subject : Business Studies

Chapter : 6

Chapter Name : Staffing

Q1 Briefly enumerate the important sources of recruitment.

Answer. Recruitment refers to the process of searching for prospective employees and
convincing them to apply for a job in the organisation. Two main sources of recruitment are as
follows -

→ Internal sources: Internal sources of recruitment are those sources in which the job
vacancies are filled through employees of the same organisation. It may be done through
transfer or promotion.

→ External Sources: When the people are recruited from outside the organisation, then it is
known as external recruitment. It can be in the form of direct recruitment, casual callers,
advertising, employment exchanges, etc.

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Q2 What is meant by recruitment?

Answer. Recruitment refers to the process of searching for prospective employees and
convincing them to apply for a job in the organisation. It includes gathering a pool of candidates
to apply for a job in the organisation.

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Q3 Define Training. How is it different from education?

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Answer. Training is the process of imparting necessary skills and enhancing the abilities of an
individual which are required for the current job position. However education refers to the
process of improving the overall knowledge and understanding of the person and it doesn't
relate to the current job.

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Q4 Distinguish between training and development.

Answer. The difference between training and development is as under -

Basis Training Development

1. Meaning It is the process of increasing It is the process of learning
the knowledge and skills of and growth of the employee.
the employee.

2. Orientation This is a job oriented This is a career oriented
process. process.

3. Duration It is a short term process and It is a long term process
its duration is usually fixed in which takes place throughout
advance. the life of the person.

4. Objective Its objective is to improve the Its objective is the overall
efficiency of the employees growth and development of
for performing their current the employee.
job in a better way.

5. Scope It has a narrow scope as it is It has a wider scope as it
related to the current job continues throughout the life
position only. of the employee and isn't
dependent upon one job
position.

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Q5 Why are internal sources of recruitment considered to be more economical?

Answer. Internal sources of recruitment are those sources in which the people are recruited
from within the organisation. These are considered to be economical as they don't involve huge
costs in terms of advertising and it also saves a lot of time generally incurred in the recruitment
process. It also helps in saving the training costs.

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Q6 What is the importance of staffing function in today’s environment?

Answer. Staffing refers to the process of finding the right person at the right time for the right
place. In the complex and dynamic bus environment, where the customers are becoming more
demanding, it becomes very essential to hire the efficient and reliable people and in the right
number. The following are the points which highlight the importance of staffing -

→Finding Competent Personnel: Staffing aims at hiring the efficient and competent personnel
which may serve the purpose of the company.

→Improves Efficiency: If the right people will be hired by the company then it will lead to lesser
wastage of resources and more efficient use of resources of the organisation.

→ Growth of the Organisation: If the hired staff is competent and efficient, then they will work
with due sincerity and dedication for the survival of the company in the long run along with its
growth.

→Optimum Utilisation of Human Resources: Staffing helps in identifying the actual manpower
requirement of the company and thus it overcomes the problem of overstaffing and
understaffing. Thus it helps in optimum Utilisation of Human Resources.

Page : 175 , Block Name : Short Type Answer Questions

Q1 Define the staffing process and the various steps involved in it?

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Answer. Staffing is the process of hiring the right person for the right job at the right time. It
refers to filling the vacancies and ensuring that they are kept filled. It is one of the most essential
functions which deal with human resources.

The following steps are involved in the process of staffing:

→ Estimation of the Required Manpower: The first step of staffing process is to estimate the
number of people to be hired and the kind of persons which are required in the organisation. It
involves the following two steps:

→ Workload analysis: It refers to the number and the kind of persons required in an
organisation.

→ Workforce analysis: It refers to the number of persons available in the organisation.

This helps in analysing whether the organisation is overstaffed or understaffed. Thus the further
staffing process is continued accordingly.

→ Recruitment: Recruitment is the process of searching for prospective candidates and
convincing them to apply for a job in the organisation. It refers to gathering a poll of candidates
to choose from for the job vacancies. For the recruitment process, internal sources (transfers
and promotions) and external sources (advertising and placement agencies) can be used.

→ Selection: The process of finding the right person for the right job at the right time is termed
as selection. It is the process of selecting the most suitable and appropriate candidate out of the
pool of candidates created in the recruitment process. For this purpose, various tests and
interviews are conducted and the person who clears all the tests is selected.

→ Induction and Placement: Induction is the process of making the selected candidate aware
about his colleagues, the working conditions and the code of conduct to be followed. Placement
refers to actually occupying the job position by the selected employee.

→ Training and Development: Training is the process of imparting those skills and
competencies to the employees which are required to perform their current job in a better way.
Development refers to the all round growth and development of the abilities and knowledge of
the employees. It helps in the overall growth and career development of the employees.

→ Appraisal: After appointing an employee in the organisation, the management has to
evaluate his performance at regular intervals in order to ensure that he is working as per the
predetermined standards. Feedbacks are provided to him in order to improve his performance.

→ Promotion : In order to motivate an employee to improve his performance and productivity,
an employee has to be promoted to higher job positions. It can be done in various ways which
may be on the basis of job experience or on the basis of performance. It results in an increase
in the pay and higher job position. It improves the job satisfaction of the employee.

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Compensation: Compensation of the employee is the amount of payment to be made to the
employees which the employees deserve. This may be paid in direct form (i.e. wages and
salaries) or in the indirect form (such as insurance and bonus).

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Q2 Explain the procedure for selection of employees.

Answer. The process of finding the right person for the right job at the right time is termed as
selection. It is the process of selecting the most suitable and appropriate candidate out of the
pool of candidates created in the recruitment process.

The selection process involves the following steps:

→Screening: The first step in the selection process is the screening of applications. It is the
basic step which checks whether the applicants meet the basic requirements and educational
qualifications. A preliminary interview can also be conducted to gather this information. Those
who qualify the screening are selected for the next step.

→Test: After the screening process, various tests are conducted to judge the overall knowledge
and abilities of the candidates. These tests include Intelligence Test, Aptitude Test, Personality
Test, Trade Test and Interest Test. With the help of these tests, the candidates are further
assessed on different grounds. For instance, personality tests assess characteristics such as
maturity level and emotional control.

→ Personal Interview: Tests are followed by a personal interview which includes one-to-one
conversation of the candidate with the manager. Herein, the candidate is further judged for the
suitability of the job. Moreover, the candidate may seek certain information about the
organisation.

→Background Checks: After the individual clears the interview, the organisation may ask for
references such as from previous employers or other known persons. The references are then
used to cross check the information provided by the candidate. Moreover, these references may
provide certain additional information about the candidate.

→ Selection Decision: When the candidate clears the tests and interviews, the final selection is
done.

→ Medical Examination: Some organisations may also conduct a medical examination and the
job is offered only when they are declared medically fit by a medical practitioner.

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→ Job Offer: After the above-mentioned steps are completed, the selected applicant is provided
the job offer. A job offer or a letter of appointment confirms that the individual has been selected
for the job. It provides information such as date of joining and the time of reporting.

→Employment Contract: When the applicant accepts the job offer, he/she is required to fill-up
some additional forms which are used by the organisation for future references. For instance,
one such document is the contract of employment which comprises details such as salary, date
and terms of joining, working hours and allowances.

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Q3 What are the advantages of training to the individual and to the organisation?

Answer. Training refers to enhancing the skills and abilities necessary for a specific job. In other
words, it attempts at improving the aptitude and knowledge of employees according to the
requirements of the specific job.

Training imparts the following benefits to the employee and to the organisation:

Benefits to the Employee

→Better Career Opportunities: Training helps in improving the knowledge of the employee
which in turn helps in improving his career prospects.

→ Earn More: By helping the individual to improve their knowledge and skills, training improves
the earning prospects of employees.

→Less Accident Prone: With proper training, employees become more efficient in handling
complex machines. This helps in reducing the chances of an accident.

→ Self-Confidence: By increasing the knowledge, skills and aptitude of employees, training
helps in boosting self-confidence, which in turn helps in improving job satisfaction.

Benefits to the Organisation

→Less Wastage: With training, employees learn to work systematically without the need of any
hit and trial method. This helps in reducing the wastage of time and money.

→Higher Profits: By developing the skills of individuals, it makes them more efficient and
productive. With increase in overall productivity, the profits of the organisation rise.

→Managerial Efficiency: Training imparts self-confidence among employees to face new
challenges. It helps them to better deal with varied situations and problems.

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→Reduced Absenteeism: Effective training helps in boosting self-confidence and self-reliance of
employees, which in turn helps in reducing absenteeism and employee turnover in the
organisation.

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Q4 The staffing function is performed by every manager and not necessarily by a separate
department. Explain.

Answer. Staffing refers to the process of filling job positions in an organisation and maintaining
the positions so filled. The staffing function plays an important role in an organisation as it
ensures that the appropriate personnel are selected for the job.

→Staffing involves various stages such as recruitment, selection, placement, orientation and
training. With the staffing function, the human element of an organisation is managed. Based on
how well this function is performed, the overall efficiency of the organisation is determined.
Nowadays, various organisations develop a separate department known as the Human
Resources Department specifically for this function. Under this department, various activities
and tasks related to staffing are performed by specialised managers. In addition, they work
towards labour grievances.

→However, staffing need not be separately performed by a particular department; rather, it is to
be performed by every manager. It is an integral part of management. The managers must
watch if there is any vacant job position or if additional personnel are required. As managers
directly deal with the work, they know what qualifications, skills and aptitude are required for a
specific job. Accordingly, they can perform the staffing function more efficiently. They would be
better able to select the right source of recruitment and carry on the selection process. In
addition, they can perform other important aspects of staffing, namely appraisal, promotions and
career planning.

Hence, staffing does not require a separate department; rather, it can be performed by every
manager.

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Q1 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.

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Answer. To correct the situation, workers must be provided with proper training. Training refers
to enhancing the skills and abilities necessary for a specific job.

Training would help both supervisor and employees in the following manner:

→Training would help in reducing the wastages of time and money. In this way, it ensures
optimal utilisation of resources.

→Proper training of employees would help in reducing the burden of the supervisor.

→ It would make employees better equipped to face new challenges and deal with various
situations and problems.

→With proper training, employees would become more efficient in handling complex machines.
This helps in reducing the chances of an accident.

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Q2 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. The problem mentioned in the question can be solved by providing off-the-job training
to workers.

According to the given situation, there is use of hi-tech and sophisticated machines.
Accordingly, vestibule training can be provided. Under this training, dummy models of the actual
working environment are created. The trainees are then trained to work on the dummy
machines. When they acquire the required expertise, they are shifted to work on the actual
machines at the workplace.

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Q3 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?

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Answer. In the given situation, workers can be provided with on-the-job training. Here,
apprenticeship training can be provided. Employees can be made to work under the guidance of
a master worker who would teach them the proper use of machinery. For a certain period of
time, workers can work under the guidance of a master worker before they gradually start to
work by themselves. With training, workers would be able to work with greater efficiency.

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Q4 An organisation provides security services. It requires such candidates who are reliable and
don’t leak out the secrets of their clients. What step should be incorporated in selection
process?

Answer. Selection tests can be conducted as part of the selection process. One of the tests
which can be conducted is the personality test which would assess the candidate's nature, state
of mind and maturity level.

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Q5 A company is manufacturing paper plates and bowls. It produces 100000 plates and bowls
each day. Due to local festival, it got an urgent order of extra 50,000 plates bowls. Advise how
the company will fulfill its order and which method of recruitment would you suggest.

Answer. In the given scenario, the company should use an external source of recruitment such
as labour contractors. The situation requires low-skilled workers which can be easily provided by
labour contractors. As labour contractors are in close contact with labourers, they can make
available the right amount of workers even at a short notice.

Page : 175 , Block Name : Application Type Answer Questions

Q1 A company X 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

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manufacturers source their auto components from here. X limited is planning to capture about
40% of the market share in India and also export to the tune of at least $5 million 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 the company to advise it in this matter. While
giving answers keep in mind the sector the company is operating.

Questions

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

2. Which sources of recruitment the company should rely upon. Give reasons for your
recommendation.

3. Outline the process of selection the company should follow with reasons.

4. Which methods of training and development should the company initiate? Explain giving
reasons.

Answer. Staffing which the company should follow:

→Estimating the number of personnel and the particular kind required for the setup.

→Identifying suitable candidates for job vacancies and convincing them to apply for the same.

→ Choose an appropriate candidate through a rigorous selection process.

→Making the employee familiar with the working environment.

→Providing the required training to employees.

→Evaluating the performance of employees against the predetermined standards and providing
regular feedback.

→ Promoting suitable employees to higher positions.

→ Providing an appropriate compensation to employees.

In the given situation, the company should use external sources of recruitment. Selecting
candidates from the local area who are familiar with the working conditions, problems faced etc.
in the local region would be more suitable.

The following selection process should be used:

→Screening candidates on the basis of the basic criteria and qualifications as required by the
job.

→Evaluating the candidate on criteria such as aptitude, intelligence and personality.

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→Conducting a personal interview to judge the overall suitability of the candidate according to
the requirements of the job.

→Conducting a background check and taking references from the candidate.

→ If selected, providing a job offer to the candidate.

→ Providing an employment contract stating the terms and conditions of employment.

To have a highly trained and motivated workforce, the company must initiate the following
methods of training and development.

→Apprenticeship programmes: Workers are made to work with a master worker who provides
them the required skills for the job. After a pre-defined amount of time, the workers are then
gradually shifted to work themselves.

→Coaching: Trainees are made to work with the guidance of a coach. They both work towards
achieving the common goal as set on the basis of their mutual understanding. Typically, the aim
of coaching is to train employees towards reaching a higher position at work.

→Internship training: Business corporations select students from educational institutions to work
with them as interns for a certain period.

→ Vestibule training: The organisation creates a dummy model of the real working environment.
The trainees are first made to work on dummy machines. Only after they attain expertise to work
on the dummies, they are shifted to the workplace.

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Q2 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 ‘job-seeker’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

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

2. How do you think it can be resolved?

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Answer. The following problems are faced by the company:

→The company faces a dearth of competent and qualified candidates as the competitors have
attracted a majority of the most qualified candidates.

→The existing employees lack the required hard skills which lead to poor performance.

Steps which can be taken to resolve the problems faced:

→Proper training must be given to employees to make them proficient in hard skills.

→Recruitment activities can be outsourced to a specialised agency so that the company is
better able to attract competent candidates.

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Q3 A Public transport corporation has hired 1000 buses for the different routes for the
passengers of metropolitan city. Most of the 3000 crewmen (drivers, conductors, helpers etc.) of
these buses have been found to be wanting in satisfactorily dealing with public and daily
commuters. They seem to be little interested in the job and the job seem to have lost all
meaning to them.

Questions

1. As manager of the public transport company what measures do you suggest to improve the
working of crewman in question?

2. Is it possible to modify their behaviour by planning a suitable type of training? Suggest one.

Answer. The following measures can be taken to improve the performance of the crewmen in
the company:

→Crewmen should be trained in the required soft skills.

→Employees can be given various financial and non-financial incentives.

→ Employees should be made aware of the importance of their job.

Yes, behaviour can be modified with the help of proper training. Crewmen should be trained in
the required soft skills so that they are better able to deal with commuters. The training should
aim at making the crew more courteous and well-mannered towards commuters.

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Page : 177 , Block Name : Case Type Answer Questions

Q4 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.

Questions

1. Point out, what functions is she supposed to perform?

2. What problems do you foresee in her job?

3. What steps is she going to take to perform her job efficiently?

4. How significant is her role in the organisation?

Answer. The main function which she is supposed to perform is the staffing function. It is her
responsibility to ensure that according to the expansion plans of the organisation, the job
positions are appropriately filled with qualified and competent candidates. Further, she must
ensure that the candidates are provided proper training and motivation to work. As part of her
role, she must ensure that the individual goals of employees are in sync with the overall goals of
the organisation.

The functions of Ms Jayshree can be summarised as follows:

→Recruiting appropriate candidates

→Preparing descriptions for the job positions

→Preparing a plan for compensation and incentives of employees

→Providing training to employees according to the job requirements

→Maintaining a harmonious work environment

→Ensuring social security and welfare of employees

→Defending the company in case of any law suits and legal complications

Some problems which Ms Jayshree may face:

→She has to perform various specialised functions at the same time.

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→She has to follow a rigorous process in selecting the candidates.

→Identifying appropriate sources for recruitment of candidates is a challenging task.

→She must arrange for the training of personnel.

Steps to be taken to perform the job efficiently:

→She must formulate a proper staffing plan so as to estimate the human resource requirements
at present and in the future.

→She must appropriately decide the basic qualification requirements for the job.

→ An assessment test should be developed for the process of screening candidates.

→To attract potential candidates, the job should be well advertised.

→A series of proper selection tests and interviews should be conducted.

Her role is very significant in the organisation. It is highly essential to ensure that the most
suitable candidates are selected for the job. An inappropriate selection would hamper the
overall performance and efficiency in the organisation. In addition, as human behaviour is
complex, it is even more complicated to select the right candidate. The following points justify
the importance of human resource management:

→Ensuring the recruitment of right personnel so as to maintain performance and efficiency.

→Working towards growth and survival of the organisation through proper training.

→Providing proper motivation and incentives to employees.

→Ensuring optimum utilisation of resources.

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