NCERT Class 12 Business Studies Chapter 6 Staffing

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NCERT Class 12 Business Studies Chapter 6 Staffing

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Staffing

Chapter: 6

PART – Ⅰ  PRINCIPLES AND FUNCTIONS OF MANAGEMENT

EXERCISE

VERY SHORT ANSWER TYPE

1. What is meant by staffing?

Ans: In the simplest terms, staffing is ‘putting people to jobs’. It begins with workforce planning and includes different other functions like recruitment, selection, training, development, promotion, compensation and performance appraisal of the workforce. In other words, staffing is that part of the process of management which is concerned with obtaining, utilising and maintaining a satisfactory and satisfied workforce.

2. State the two important sources of recruitment. 

Ans: There are two sources of recruitment: Internal and External. 

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

Ans: Vestibule Training: In this method, employees are trained on the same equipment they will use in their jobs, but the training takes place away from the actual work floor. A simulated work environment is created in a classroom setting, where employees practice using the same materials, files, and machinery. This approach is particularly useful when employees need to operate advanced or sophisticated equipment, ensuring they gain hands-on experience without disrupting the actual production process.

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). 

Ans: Vestibule Training: In this method, employees are trained on the same equipment they will use in their jobs, but the training takes place away from the actual work floor. A simulated work environment is created in a classroom setting, where employees practice using the same materials, files, and machinery.

Apprenticeship Programmes: Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill. People seeking to enter skilled jobs, to become, for example, plumbers, electricians or ironworkers, are often required to undergo apprenticeship training. These apprentices are trainees who spend a prescribed amount of time working with an experienced guide, or trainer. A uniform period of training is offered to trainees, in which both fast and slow learn here, are placed together. Slow learners may require additional training.

5. 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. (vestibule training)

Ans: Vestibule Training: It is a training method where employees learn to operate machinery and perform tasks in a simulated work environment, separate from the actual workplace. A simulated work environment is created in a classroom setting, where employees practice using the same materials, files, and machinery. This approach is particularly useful when employees need to operate advanced or sophisticated equipment, ensuring they gain hands-on experience without disrupting the actual production process.

SHORT ANSWER TYPE

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

Ans: Recruitment refers to the process of finding possible candidates for a job or a function. It has been defined as  ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.

Basic	Recruitment	Selection
Meaning	Recruitment is the process of finding and hiring people to fill a job opening.	Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment.
Objective	The object of recruitment is to attract potential employees with the necessary characteristics or qualifications.	Selection is about choosing the most suitable candidate from the pool created during the recruitment process.

2. 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? 

Ans: (i) To select reliable candidates for security services, an organization can conduct personality tests and check references. 

(ii) Reference Checks: Contact previous employers to verify the candidate’s reliability and work ethics.

(iii) These tests assess the overall personality, aiming to evaluate the individual’s traits and characteristics as a whole.

3. 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. 

Ans: Casual Callers: Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job seekers can be a valuable source of manpower. A list of such jobseekers can be prepared and can be screened to fill the vacancies as they arise. The major merit of this source of recruitment is that it reduces the cost of recruiting workforce in comparison to other sources.

4. Distinguish between training and development. 

Ans: 

Training	Development
It is a process of increasing knowledge and skills.	It is a process of learning and growth.
It is to enable the employee to do the job better.	It is to enable the overall growth of the employee.
It is a job oriented process.	It is a career oriented process.

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

Ans: Internal sources of recruitment are considered more economical because they reduce the cost and time involved in hiring new employees. Additionally, existing employees require minimal training and adaptation, making the recruitment process faster and more cost-effective.

6. ‘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.

Ans: Staffing is the most fundamental and critical drive of organisational performance. The staffing function has assumed greater importance these days because of rapid advancement of technology, increasing size of organisation and complicated behaviour of human beings. Human resources are the most important asset of an organisation. The ability of an organisation to achieve its goal depends upon the quality of its human resources. Therefore, staffing is a very important managerial function. No organisation can be successful unless it can fill and keep filled the various positions provided for in the structure with the right kind of people.

LONG ANSWER TYPE

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

Ans: Human Resource Management includes many specialised activities and duties which the human resource personnel must perform. Recruitment, i.e., search for qualified people Analysing jobs, collecting information about jobs to prepare job descriptions. Developing compensation and incentive plans. Training and development of employees for efficient performance and career growth. Maintaining labour relations and union management relations. Handling grievances and complaints. Providing for social security and welfare of employees. Defending the company in lawsuits and avoiding legal complications.

Human Resource Management (HRM) in its present form has evolved from a number of significant inter related developments, which date back to the era of industrial revolution. Emergence of the trade union movement led to the need of a person who could act as an effective link between the owners and workers. Thus, the concept of a labour welfare officer came into being.

2. Explain the procedure for selection of employees. 

Ans: The important steps in the process of selection are as follows: 

(i) Preliminary Screening: Preli minary screening helps the manager eliminate unqualified or unfit job seekers based on the information supplied in the application forms. Preliminary interviews help reject misfits for reasons, which did not appear in the application forms. 

(ii) Selection Tests: An employment test is a mechanism (either a paper and pencil test or an exercise) that attempts to measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality.  

(iii) Employment Interview: Interview is a formal, in depth conversation conducted to evaluate the applicant’s suitability for the job. The role of the interviewer is to seek information and that of the interviewee is to provide the same. Though, in present times, the interviewee also seeks information from interviewer. 

(iv) Reference and Background Checks: Many employers request names, addresses, and telephone numbers of references for the purpose of verifying information and gaining additional information on an applicant. Previous employers, known persons, teachers and university professors can act as references. 

(v) Selection Decision: The final decision has to be made from among the candidates who pass the tests, interviews and reference checks. The views of the concerned manager will  be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee. 

(vi) Medical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test. The job offer is given to the candidate being declared fit after the medical examination. 

(vii) Job Offer: The next step in the selection process is job offer to those applicants who have passed all the previous hurdles. Job offer is made through a letter of appointment/confirm his acceptance. Such a letter generally contains a date by which the appointee must report on duty. The appointee must be given reasonable time for reporting. 

(viii) Contract of Employment: After the job offer has been made and the candidate accepts the offer, certain documents need to be  executed by the employer and the candidate. One such document is the attestation form. This form contains certain vital details about the candidate, which are authenticated and attested by him or her. Attestation form will be a valid record for future reference.  

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

Ans: Training and development help both the organisation and the individual.

The benefits of training and development to an organisation are as follows: 

(i) Training is a systematic learning, always better than hit and trial methods which lead to wastage of efforts and money. 

(ii) It enhances employee productivity both in terms of quantity and quality, leading to higher profits.  

(iii) Training equips the future manager who can take over in case of emergency. 

(iv) Training increases employee morale and reduces absenteeism and employee turnover. 

(v) It helps in obtaining an effective response to a fast changing environment – technological and economic. 

The benefits of training and development activity to the employees are as follows: 

(i) Improved skills and knowledge due to training lead to better careers for the individual. 

(ii) Increased performance by the individual helps him to earn more. 

(iii) Training makes the employee more efficient to handle machines. Thus, less prone to accidents. 

(iv) Training increases the satisfaction and morale of employees. 

4. 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 a rigorous screening process. 

(a) State the source of recruitment highlighted in the case above.

Ans: Web Publishing: Internet is becoming a common source of recruitment these days. There are certain websites specifically designed and dedicated for the purpose of providing information about both job seekers and job openings. In fact, websites are very commonly visited both by the prospective employees and the organisations searching for suitable people. 

(b) State four benefits of the above identified source of recruitment. 

Ans: The advantages of using external sources of recruitment are as follows: 

(i) Qualified Personnel: By using external sources of recruitment, the management can attract qualified and trained people to apply for vacant jobs in the organisation. 

(ii) Wider Choice: When vacancies are advertised widely, a large number of applicants from outside the organisation apply. The management has a wider choice while selecting the people for employment. 

(iii) Fresh Talent: The present employees may be insufficient or they may not fulfill the specifications of the jobs to be filled. External recruitment provides wider choice and brings new blood in the organisation. However, it is expensive and time consuming. 

(iv) Competitive Spirit: If a company taps external sources, the existing staff will have to compete with the outsiders. They will work harder to show better performance.

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

Questions:

(a) Outline the process of staffing the company should follow. 

Ans: Xylo Limited should follow a systematic staffing process to ensure it hires the right workforce.

The process includes:

(i) Manpower Planning: Estimating the number and type of employees required for production, considering future expansion.

(ii) Recruitment: Recruitment refers to the process of finding possible candidates for a job or a function. It has been defined as ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.’

(iii) Selection: Selection is the process of choosing from among the pool of prospective job candidates developed at the stage of recruitment.

(iv) Placement & Orientation: Joining a job marks the beginning of socialisation of the employee at the workplace. The employee is given a brief presentation about the company and is introduced to his superiors, subordinates and the colleagues.

(v) Training and development: Training and development programs typically involve educational activities that advance a worker’s knowledge and instill greater motivation to enhance job performance. If employee motivation is high, their competencies are strengthened, they perform better and thus, contribute more to organisational effectiveness and efficiency.

(vi) Performance Appraisal: Performance appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. The employee is expected to know what the standards are and the superior is to provide the employee feedback on his/her performance.

(vii) Compensation & Retention: All organisations need to establish wage and salary plans for their employees. There are various ways to prepare different pay plans depending on the worth of the job. Basically the price of the job needs to be determined. Compensation, therefore, refers to all forms of pay or rewards going to employees. 

(b) Which sources of recruitment the company should rely upon. Give reasons for your recommendation. 

Ans: Xylo Limited should rely on the following sources:

External Source:

(i) Campus Recruitment: Colleges and institutes of management and technology have become a popular source of recruitment for technical, professional and managerial jobs.

(ii) Placement Agencies and Management Consultants: In technical and professional areas, private agencies and professional bodies appear to be doing substantive work. Placement agencies provide a nationwide service in matching personnel demand and supply. 

(iii) Advertisement: Advertisement in newspapers or trade and professional journals is generally used when a wider choice is required. Most of the senior positions of industry as well as commerce are filled by this method. 

Internal Sources:

(i) Transfers: It involves shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee. It may lead to changes in duties  and responsibilities, working condition etc., but not necessarily salary. Transfer is a good source of filling the vacancies with employees from overstaffed departments. 

(c) Outline the process of selection the company should follow with reasons. 

Ans: To ensure a highly skilled and motivated workforce, Xylo Limited should follow a rigorous selection process:

(i) Preliminary Screening: Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the information supplied in the application forms. Preliminary interviews help reject misfits for reasons, which did not appear in the application forms.

(ii) Aptitude Test: It is a measure of an individual’s potential for learning new skills. It indicates the person’s capacity to develop. Such tests are good indicators of a person’s future success score.

(iii) Personal Interview: Face-to-face interaction to assess attitude, work ethic, and motivation.

(iv) Medical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test. The job offer is given to the candidate being declared fit after the medical examination.

(v) Selection Decision: The final decision has to be made from among the candidates who pass the tests, interviews and reference checks. The views of the concerned manager will  be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee. 

6. 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:

(a) As an HR manager what problems do you see in the company?

Ans: Problems Faced by the Company:

(i) Lack of Skilled Employees: The available candidates possess soft skills but lack the necessary technical expertise.

(ii) Inability to Provide Optimal Solutions to Clients: Due to insufficient training, employees may struggle to meet client expectations.

(iii) Inefficient Data Management: The absence of proper data-handling skills may lead to errors and mismanagement.

(b) How do you think it can be resolved and what would be its impact on the company? 

Ans: The company should implement the following measures:

(i) Comprehensive Hard Skills Training: Providing structured training programs to equip employees with the required technical skills.

(ii) Efficient Database Management System: Maintaining a well-organized database to improve data accuracy and accessibility.

(iii) Strong Supervisor-Employee Interaction: Encouraging close communication between supervisors and new hires to enhance learning and adaptation.

7. 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: 

(a) Point out, what functions is she supposed to perform?

Ans: (i) Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.

(ii) Selection: Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. 

(iii) Training and Development: What people seek is not simply a job but a career. Every one must have the opportunity to rise to the top. 

(iv) Performance Appraisal: After the employees have undergone a period of training and they have been on the job for some time, there is a need to evaluate their performance.

(v) Compensation: All organisations need to establish wage and salary plans for their employees. There are various ways to prepare different pay plans depending on the worth of the job. Basically the price of the job needs to be determined. 

(b) What problems do you foresee in her job?

Ans: (i) Recruitment Challenges: Finding and attracting 200 skilled employees within a limited timeframe.

(ii) Training & Skill Gaps: Ensuring new hires are adequately trained for their roles.

(iii) Employee Retention Issues: Maintaining motivation and reducing attrition in a competitive market.

(c) What steps is she going to take to perform her job efficiently? 

Ans: To manage her responsibilities effectively, Ms. Jayshree should:

(i) She should look for all possible sources of recruitment.

(ii) Maintain clear communication with employees and management for smooth workforce planning.

(iii) She should make attractive salary, policies and initiatives.

(d) How significant is her role in the organisation?

Ans: Ms. Jayshree’s role is crucial as she will be directly responsible for building a strong workforce, ensuring employee satisfaction, and improving overall productivity. It is also her responsibility to maintain a healthy working environment in her organisation.