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NCERT · Class 12 · Business Studies

Chapter 6: Staffing

Practice each question, then open the answer or worked solution.

Textbook exercises

18 questions
Q11Written answer

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

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Ans: In today's world, finding the right candidate for the job can be difficult due to technological advancements, the nature of the job, and the skill sets required. Staffing is a critical management function that aids in the hiring of manpower for the organization.


Staffing has the following advantages:

  • Best candidate: Staffing aids in the identification and selection of the best candidate for the job.

  • Increases Efficiency: It ensures that the right people are chosen for the right job, which contributes to the organization's overall efficiency and performance.

  • Better growth opportunities: An organization has a better chance of growing if the best candidates are chosen for the job.

  • Manpower Planning: Staffing aids in manpower planning and proper manpower utilization. It also aids in the filling of vacant job positions, ensuring that working efficiency is maintained.

  • Harmony: Through staffing, the right kind of people are selected for the job, whose selection is based on merit. These people are put to work after the required background checks and provision of proper training. Hence the right people at the right job will be able to work more efficiently, and the overall harmony in the organisation will be kept intact as well.


Q12Written answer

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

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Ans: Human resource management is one of the most important functions of management because it deals with the hiring, development, and management of human resources for the organization. 

It is responsible for a variety of tasks, including determining the demand for recruiting, developing recruitment plans, conducting recruitment, selecting the best candidates, distributing offer letters, inducting employees into the organization, providing training and development, and finally acting as a support for employee grievances.

The following points will discuss the activities carried out by human resources:

  • Human resource management

  • Candidate recruitment (the process of finding candidates for jobs)

  • Determine the job and its specific requirements, as well as conduct research and analysis to prepare the proper job description.

  • Organizing training and development programs for new employees as well as refresher programs for current employees.

  • Conducting employee performance appraisals on a quarterly/half-yearly/yearly basis.

  • Keeping good relations with labors and paying attention to labor union demands

  • Serve as the primary point of contact for employee complaints and grievances.

  • Assist in the development of employee welfare programs.

  • Representing the company in various lawsuits and identifying ways to avoid legal entanglements.


Q13Written answer

Explain the procedure for selection of employees. 

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Ans: Selection is the process of selecting the best candidates from a large pool of applicants. It is a rigorous process that consists of several stages of tests and interviews. The selection process aims to get the best out of the recruited pool in order to maximize work efficiency. 


The steps involved in the selection process are as follows.

  1. Preliminary screening 

  • It assists the manager in weeding out unqualified or unfit job applicants based on the information provided in the application forms.

  1. Selection Tests 

  • An employment test is a mechanism used to assess certain characteristics of individuals.

  • These qualities range from aptitudes like manual dexterity to intelligence.

  1. Employment Interview 

  • An interview is a formal, in-depth conversation held to assess an applicant's suitability for a job.

  • In such an interview, the individual may also seek information about the organization.

  1. Reference and Background Checks 

  • Organization requests references' names, addresses, and phone numbers.

  • The goal is to verify information and to gather additional information about an applicant.

  1. Selection Decision 

  • The candidates who pass the tests, interviews, and reference checks must be chosen as the final candidates.

  • Because he/she is responsible for the new employee's performance, the views of the concerned manager will be generally considered in the final selection.

  1. Medical Examination 

  • The candidate must pass a medical fitness test. 

  • The job offer is provided to the applicant who passes the test, and is declared fit to do the job.

  1. Job Offer 

  • Job offer to applicants who have cleared all previous hurdles. 

  • Job offer is made in the form of a letter of appointment/confirmation of acceptance.

  1. Contract of Employment 

  • After receiving the job letter, candidates must fill out some forms that will be used for future references.

  • An employment contract includes details such as salary, date and terms of joining, leave rules, working hours, allowances, and so on.


Q14Written answer

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

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Ans: Training is a critical event in any organization. It is a type of activity that aims to improve the skills and abilities of individuals in order for them to perform a job. It is a necessary part of the job that aids in the advancement of an individual's knowledge. The nature of jobs has shifted in response to changes in the business environment. Here are some of the advantages of training for both employees and organizations.


Benefits to the Employees

  • Training increases an employee's confidence in handling a job. With proper training, the equipment and machines at the workplace will be easier to manage. There will be fewer mishaps.

  • Training gives employees the skills they need to advance in their careers. It aids in the improvement of process knowledge, which is necessary for future growth.

  • A person who has received training will be able to earn more than those who have not received any training.

  • Training boosts employees' self-confidence and prepares them to face new challenges at work. Increased confidence also contributes to a sense of greater job satisfaction.

Benefits to the Organisation

  • Training is a method of teaching processes that is systematic. As a result, it is more efficient and saves the organization time and money.

  • Effective training contributes to increased employee morale. It instills confidence and motivation in employees, lowering turnover and absenteeism at work.

  • Training benefits individuals and makes them more efficient, which leads to an increase in productivity. The increase in employee productivity will result in the company's growth.

  • Training helps employees prepare for new challenges and situations. It aids in the development of an effective strategy for dealing with future issues.


Q15Written answer

Kalu 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.

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Ans: Web publishing which is a part of external source of recruitment is used in this case. Www.naukaripao.com is an online portal that connects job providers and job seekers, and further helps the prospective candidates in finding the right kind of job, as well as helps companies in finding the right kind of people.

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

And: The following are the advantages of web publishing:

  • Because online recruitment has a global reach, more candidates can be hired.

  • Resumes are screened quickly on the website based solely on job title, saving recruiters a significant amount of time. It greatly simplifies the search for potential candidates. The added benefit is that the job seeker and the organization can interact in real time.

  • It shortens the hiring process when compared to traditional methods of recruitment. Not only does it save time, but it also saves money.

  • Companies looking for candidates can place their brand on the recruitment website, which will assist the recruitment company in establishing a name in the market.


Q16Written answer

A company, Xylo limited, is setting up a new plant in India for manufacturing auto components. India is a highly competitive and cost effective production base in this sector. Many reputed car manufacturers source their auto components from here. Xylo Limited is planning to capture about 40% of the market share in India and also export to the tune of at least ₹ 50 crores in about 2 years of its planned operations. To achieve these targets it requires a highly trained and motivated work force. You have been retained by the company to advise it in this matter.


While giving answers keep in mind the sector the company is operating.


Questions:

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

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

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

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Ans: The company should follow the staffing process outlined below.

  • Determine and plan the number and types of personnel needed for the setup.

  • Identify suitable candidates who can fill the company's vacancies and approach them about applying for the position.

  • After conducting a thorough interview process, choose the best candidate.

  • Assist the employee in becoming acquainted with the working environment, which will make him or her feel more at ease.

  • Train the employee in accordance with the job description requirements.

  • Evaluate the employee's performance in relation to the set of standards and provide appropriate feedback.

  • Recognize and reward high-performing employees.

Ans: The company should rely on external recruitment sources. Because the company is establishing a new plant in a new region, candidates who are locals will be the best resources as they will be familiar with the environment and working conditions of the local region, which will be beneficial to the organization.

Ans: The following selection procedure should be followed by the company.

  • Proper screening and rejecting the candidates who do not fit the job description.

  • Various tests, mainly written or online tests such as personality tests, interest tests, aptitude tests, skill tests, intelligence tests should be undertaken to have comprehensive information about the candidate.

  • Setting up various types of personal interviews such as managerial interview, technical interview for candidates who pass the tests. The manager will be able to further evaluate the candidate and assist in determining the candidate's true potential.

  • Before finalizing the candidate, background and reference check should be conducted through previous employers of the candidate.

  • Once it is assured that a candidate is a good fit for the job, intimation is given to the employee regarding his selection.

  • Assist The candidate in completing the employment contract and terms of employment.


Q17Written answer

A major insurance company handled all recruiting, screening and training processes for data entry/customer service representatives. Their competitor was attracting most of the qualified, potential employees in their market. Recruiting was made even more difficult by the strong economy and the ‘jobseeker’s market.’ This resulted in the client having to choose from candidates who had the ‘soft’ skills needed for the job, but lacked the proper ‘hard’ skills and training. 

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

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

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Ans: The following issues can be found in the company:

  • There is a shortage of qualified candidates in the company because the majority of skilled candidates have been hired by competitors.

  • The company's employees lack the necessary hard skills for the job, resulting in poor employee performance

Ans: The following steps can be taken to resolve this issue:

  • Proper hard skills training should be provided to employees in order to make them more suitable for the job.

  • In order to attract the best talent, the company can try an external recruitment process. Candidates who are deemed suitable for the job will be shortlisted by the agencies.

Impact on the Company:

  • By providing the necessary training to the employees, the firm will have the right kind of people at the right job, with the necessary skill set and training.

  • Through external recruitment, and rigorous selection procedure the company will be able to procure the best candidates with required skills.

Both the above points will further increase the efficiency and effectiveness of the company and its performance, which will increase the chances of profit maximization.


Q18Written answer

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. 

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

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

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

(iv) How significant is her role in the organization? 

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Worked solution

Ans: The functions Ms. Jayshree is supposed to perform are:

  • Recruitment, i.e., looking for qualified people

  • Job analysis, which includes gathering information about jobs in order to prepare job descriptions.

  • Making plans for compensation and incentives.

  • Employee training and development for effective performance and career advancement.

  • Keeping labor relations and union-management relations intact.

  • Dealing with grievances and complaints.

  • Providing for employee social security and welfare.

  • Defending the company in legal proceedings and avoiding legal entanglements.  

Ans: The problems I foresee in her job are:

  • It is possible that the required candidate is not available.

  • The workforce is available, but they demand a higher salary.

  • Deciding the appropriate training method.

  • Creating a suitable incentive plan.

  • Drafting a suitable compensation plan.

  • Following training, an employee may leave the organization. 

Ans: The steps are:

  • Creating a recruitment plan, deciding about the sources of recruitment.

  • Forming a staffing plan, deciding about the levels of interviews, types of selection test etc.

  • Deciding about the job description.

  • Consult an expert to develop and implement a good policy for recruiting and retaining candidates.

  • Forming a proper performance appraisal plan by gathering the required information.

  • Deciding about the methods that could be used to handle grievances, through proper understanding of methods and their suitabilities.

  • Deciding about the training mechanism based on the suitability of each method

Ans: Ms. Jayshree's role in the organization is critical. She must ensure that only qualified candidates are chosen for the position. Any error in hiring the wrong candidate will result in a waste of time and money, which will have an impact not only on performance but also on the organization's efficiency. Her job is to ensure that the candidates chosen are the best fit for the organization.

The human resource function can be beneficial to the organization in the following ways:

  • Hiring the right candidate results in increased performance and efficiency.

  • Managers can plan for employees' growth and survival within the organization.

  • Assists in maintaining employee morale and motivating employees through rewards and recognition.

  • Assists in the proper utilization of the organization's resources.