P.P.

SAVANI CHAITANYA VIDYA SANKUL,

CH. – 6 STAFFING (Exercise Solution)
th
STD: -12 SUBJECT: - BUSINESS STUDIES
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Very Short Answer Type

1. What is meant by staffing?

Answer: Staffing has been described as the managerial function of filling and keeping filled the
positions in the organisation structure.
2. State the two important sources of recruitment.
3. Answer:
a. Internal sources: When the firm arranges for manpower from within the organisation then it is
known as an internal source.
b. External sources: When the firm arranges for manpower from outside the organisation then it is
known as an external source.
4. The workers of a factory are unable to work on new machines and always demand for help of
supervisor. The Supervisor is overburdened with their frequent calls. Suggest the remedy.
Answer: Provide training
5. The quality of production is not as per standards. On investigation it was observed that most of the
workers were not fully aware of the proper operation of the machinery. What could be the way to
improve the quality of production to meet the standards?
Answer: By training
6. The workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit
of engineer is made which causes high overhead charges. How can this problem be removed.
Answer: by providing vestibule training to workers

Short Answer Type

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

Answer: ‘Recruitment is the process of searching for prospective employees and stimulating them to
apply for jobs in an organisation.’
In Recruitment organisation stimulate the prospective candidate to apply and Selection is the process
of identifying and choosing the best person out of a number of prospective candidates for a job.
If recruitment is positive, selection is negative. Recruitment helps in creating a pool of prospective
workforce whereas selection helps in finding the best out of them.
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?
Answer: By Reference and background check
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.
 Answer: Direct Recruitment: It is suitable for filling casual vacancies when there is a rush of work or
when some permanent workers are absent.
4. Distinguish between training and development.
Answer:

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

Answer: Filling of jobs internally is cheaper as compared to getting candidates from external sources.
Because only transfer or promotion has to be done. It does not involve the long process of staffing or
selection. It increases the cost in the form of more time, money and efforts in recruiting.
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.’
Answer: Because the success of an organisation in achieving its goals is determined to a great extent
on the competence, motivation and performance of its human resource.

Long Answer Type

1. ‘Human resource management includes many specialized activities and duties.’ Explain.
Answer: Human Resource Management includes many specialised activities and duties which the
human resource personnel must perform. These duties are:
 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 law suits and avoiding legal complications.
2. Explain the procedure for selection of employees.
Answer: Staffing process of the management is concerned with acquiring, developing, employing,
remunerating and retaining people or we can say it is the timely fulfilment of the manpower
requirements within an organisation.
The following steps are involved in staffing process
(i) Estimating the Manpower Requirements The first step in the staffing process is determining the
present manpower inventory and assessing the present and future manpower requirements of the
organisation keeping in mind the production schedule, demand etc.
(ii) Recruitment Recruitment may be defined as the process of searching for prospective employees
and stimulating them to apply for jobs in the organisation. For this various sources can be used like
transfer, promotion, advertising, job consultants etc.
(iii) Selection Selection is the process of choosing from among the pool of the prospective job
candidates developed at the stage of recruitment. It involves a host of tests and interviews.
 (iv) Placement and Orientation Orientation is introducing the selected employee to other employees
and familiarising him with the rules and policies of the organisation. He is taken around the work place
and given the charge of the job for which he has been selected. Placement refers to the employee
occupying the position or post for which the person has been selected.
(v) Training and Development All organisations have either in-house training centres or have forged
alliances with training and educational institutes to ensure continued learning of their subordinates. By
offering the opportunities for career advancement to their members, organisations are not only able
to attract but also retain its talented staff.
(vi) 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. The employee is
expected to know what the standards are and the superior is to provide the employee feedback on
his/her performance. The performance appraisal process, therefore, will include defining the job,
appraising performance and providing feedback.
(vii) Promotion and Career Planning It is very important for all organisations to address career related
issues and promotional avenues for their employees. They must provide opportunities to everyone to
show their potential and in return promotions can be provided.
(viii) 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.
Compensation therefore, refers to all forms of pay or rewards going to employees.
3. What are the advantages of training to the individual and to the organisation?
Answer: Training helps both the organisation and the individual.
Benefits to the Organisation
(i) Training is a systematic learning which reduces the wastage of efforts and money.
(ii) Enhances employee productivity.
(iii) Training helps a manager to handle an emergency situation.
(iv) Training motivates workers and thus reduces absenteeism.
(v) Helps in adjusting to the changing environment (technological).
Benefits to the Employee
(i) Better career opportunities due to improved skills and knowledge.
(ii) Earnings can be increased due to improved performance.
(iii)Trained workers can handle machines more efficiently.
(iv) Employees always remain motivated and satisfied.
4. Kaul Consultants have launched [Link] exclusively for senior management
professionals. The portal lists out senior level jobs and ensures that the job is genuine through rigorous
screening process.
a. State the source of recruitment highlighted in the case above.
b. State four benefits of the above identified source of recruitment.
Answer:
A. External resource – web Publishing
B. The advantages of using external sources of recruitment are as follows:
 Qualified Personnel: By using external sources of recruitment, the management can attract
qualified and trained people to apply for vacant jobs in the organisation.
  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.
 Fresh Talent: The present employees may be insufficient or they may not fulfill the specifications
of the jobs to be filled. External recruitment provide wider choice and brings new blood in the
organisation. However, it is expensive and timeconsuming.
 Competitive Spirit: If a company taps external sources, the extisting 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 ` 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.
Answer:
A. STAFFING PROCESS
(i) ESTIMATING THE MANPOWER REQUIREMENTS: Understanding manpower requirements is not
merely a matter of knowing how many persons we need but also of what type. Given that we
need to encourage women, persons from backward communities and persons with special
abilities. Operationally, understanding the manpower requirements would necessitate workload
analysis on the one hand and workforce analysis on the other.
WORKLOAD ANALYSIS would enable an assessment of the number and types of human resources
necessary for the performance of various jobs and accomplishment of organisational objectives.
WORKFORCE ANALYSIS would reveal the number and type available. In fact such an exercise
would reveal whether we are understaffed, overstaffed or optimally staffed. It may be pointed out
that neither over-staffing nor under-staffing is a desirable situation.
(ii) RECRUITMENT: Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.
The advertisement may be displayed on the factory/ office gate or else it may be got published in
print media or flashed in electronic media. The essential objective is to create a pool of the
prospective job candidates. Both internal and external sources of recruitment may be explored.
(iii) SELECTION: Selection is the process of choosing from among the pool of the prospective job
candidates developed at the stage of recruitment.
Selection process serves two important purposes:
a. It ensures that the organisation gets the best among the available, and
b. It enhances the self-esteem and prestige of those selected
 Involves a host of tests and interviews, Those who are able to successfully negotiate the test and
the interviews are offered an employment contract, a written document containing the offer of
employment, the terms and conditions and the date of joining.

(iv) PLACEMENT AND ORIENTATION: Joining a job marks the beginning of socialisation of the
employee at the workplace.
ORIENTATION is, thus, introducing the selected employee to other employees and familiarising
him with the rules and policies of the organisation.
PLACEMENT refers to the employee occupying the position or post for which the person has been
selected.
(v) TRAINING AND DEVELOPMENT: Everyone must have the opportunity to rise to the top. The best
way to provide such an opportunity is to facilitate employee learning. Organisations have either in
house training centers or have forged alliances with training and educational institutes to ensure
continuing learning of their employees. By offering the opportunities for career advancement to
their members, organisations are not only able to attract but also retain its talented people
(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. The performance appraisal process, therefore, will include
- Defining the job,
- Appraising performance and
- Providing feedback.
(vii) PROMOTION AND CAREER PLANNING: Managers need to design activities to serve employees’
long-term interests also. They must encourage employees to grow and realise their full potential.
Promotions are an integral part of people’s career. They refer to being placed in positions of
increased responsibility. They usually mean more pay, responsibility and job satisfaction.
(viii) 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. Compensation, therefore, refers to all forms
of pay or rewards going to employees.
It may be in the form of
DIRECT FINANCIAL PAYMENTS like wages, salaries, incentives, commissions and bonuses and
indirect payments like employer paid insurance and vacations.
Types :
- TIME BASED : A time based plan means salary and wages are paid either daily, weekly
or monthly or annually.
- PERFORMANCE BASED. Performance based plans means salary/wages are paid
according to piecework.

Besides there are some other factors also which influence the design of any pay plan, like legal
(labour laws), union, company policy and equity.

B. External Sources of recruitment the company should rely upon. External recruitment provides wide
choice and brings new blood in the organisation.
C. The important steps in the process of selection are as follows:
1. 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.
2. 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.
Important Tests Used for Selection of Employees:
a. Intelligence Tests: This is one of the important psychological tests used to measure the level of
intelligence quotient of an individual. It is an indicator of a person’s learning ability or the
ability to make decisions and judgments.
b. Aptitude Test: It is a measure of individuals potential for learning new skills. It indicates the
person’s capacity to develop.
c. Personality Tests: Personality tests provide clues to a person’s emotions, her reactions,
maturity and value system etc. These tests probe the overall personality. Hence, these are
difficult to design and implement.
d. Trade Test: These tests measure the existing skills of the individual. They measure the level of
knowledge and proficiency in the area of professions or technical training.
e. Interest Tests: Every individual has fascination for some job than the other. Interest tests are
used to know the pattern of interests or involvement of a person.
3. 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.
4. 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.
5. 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. 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.
7. 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.
8. Contract of Employment: Next is 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. There is also a need for
preparing a contract of employment. Basic information that should be included in a written
contract of employment will vary according to the level of the job, but the following checklists
- Job Title, Duties, - Rates of pay, - Leave rules,
- Responsibilities, - Allowances, - Sickness,
- Date of Joining - Hours of work, - Grievance procedure,
 - Disciplinary procedure, - Termination of
- Work rules, employment.
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?
b. How do you think it can be resolved and what would be its impact on the company?
Answer:
a. The human resource manager may face the following problems
(i) Lack of trained workforce.
(ii) Lack of sufficient personnel to provide customer services.
(iii) Inefficient maintenance of data.

b. Following steps can be taken to resolve these problems

(i) Proper training of the personnel.
(ii) Provision of incentive based schemes.
(iii) Proper data base should be maintained by the company in order to provide efficient services.

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?
b. What problems do you foresee in her job?
c. What steps is she going to take to perform her job efficiently?
d. How significant is her role in the organisation?
Answer:
a. Ms Jayshree as HR manager is required to perform the following functions
(i) Recruitment
(ii) Prepare job description
(iii) Preparing compensation and incentive plans
(iv) Arranging training programmes
(v) Making welfare schemes for employees
(vi) Handling grievances of employees
(vii) Handling labour dispute
b. She may face the following problems
(i) Properly qualified candidates may not be available.
(ii) Demand for wages may go higher.
(iii) After providing training the workers may leave the organisation.
(iv) Trade unions may bring unreasonable demands.
c. Following steps can be taken by her to perform her job efficiently
(i) She should make use of all the possible sources of recruitment.
 (ii) She should frequently consult the experts and also observe the policies followed by competitors
to recruit and retain the workforce.
(iii) Maintaining cordial relationship with trade unions and encouraging them to act as one big
family.
d. Her role in very significant in the organisation. She is a human resources manager and concerned
with timely procurement of competent manpower and ensuring its effective and efficient utilisation
so as to survive along with the three main objectives; organisational, individual and societal.