CBSE Class 12 Business Studies Staffing Worksheet Set B

NCERT Solutions for Class 12 Business Studies Chapter 6 Staffing Short Answer Type Questions

Question. Zenith Ltd. is a highly reputed company and many people wanted to join this company. The employees of this organisation are very happy and they discussed how they came in contact with this organisation. Aman said that he was introduced by the present Sales Manager, Mr. John. Benu said that he had applied through the newspaper and was appointed as H. R. Manager. Vaibhav said that he was neither related to any of the employee of the organisation nor there was any advertisement in the newspaper even then he was directly called from IIM Ahmedabad from where he was about to complete his MBA.
(i) The above discussion is indicating an important function of management. Name the function of management.
(ii) The management function identified in part
(a) follows a particular process. Explain the step of this process which is being discussed in the above para.
Answer: (i) Staffing.
(ii) Recruitment : It is defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.

Question. Name and define the process that helps in possible candidates for a job or a function. 
Answer: Recruitment. Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organi-sation.

Question. Satnam Ltd. are the manufactures of ‘Gents Designer Suits’ with their own trade mark. During the year 2013-14, the company employed 30 senior
technicians to work on machines imported from America for manufacturing ‘Gents Designer Suits’. The technicians were employed on probation of one year. They were put on their respective jobs after one month’s on the job training. Because of the faulty selection process, the technicians could not perform well. Ten of them left the job on their own and 12 had to be removed by the company during the probation period. Now the company is in the process of selecting new technicians. Advice the company about any three types of selection tests, describing each in about 20 words, that may be used for selecting the desired technicians.
Answer: Types of selection tests that may be used for selecting the desired technicians are :
(i) Trade test : Measures the level of knowledge and proficiency in the area of profession or technical training already possessed by the applicant.
(ii) Aptitude test : Measures individual’s potential for learning new skills.
(iii) Interest test : Used to know the pattern of interests or involvement of a person.

Question. Why is training important for an organisation? State any three reasons.
Answer: The reasons why training is important for an organisation are :
(i) It avoids wastage of efforts and money by systematic learning of skills.
(ii) It enhances employee’s productivity, leading to the higher profits.
(iii) It equips the future manager who can take over in case of an emergency.
(iv) It reduces absenteeism and employee turnover by increasing employee morale.
(v) It helps in obtaining an effective response to a fast changing environment.

Question. Mr. Murthy is the Human Resource Manager of Jai Hind Hospital in Vellore. He has to appoint nurses for the hospital. Since patients in the hospital are of different types, he wants to find out the candidates’ maturity and emotions in dealing with the patients. He also wants to know about the candidates’ ability to make decisions. Explain two types of tests that Mr. Murthy can use to meet his requirements.
OR
Mr. Raman is the human resource manager of Shanti Hospital in Nellore. He has to appoint nurses for the hospital. For this he has conducted preliminary interviews. Since patients in the hospital are of different types, he has also conducted tests to find out the candidates’ maturity and emotions in dealing with the patients. He has also conducted tests to know about the candidates’ ability to take decisions. Explain the remaining steps that Mr. Raman should take to complete the selection process. 
Answer: Two types of tests that Mr. Murthy can use to meet his requirements are :
(i) Personality Test It provides clues to a person’s emotions, reactions, maturity, value systems etc. They probe the overall personality and are difficult to design and implement.
(ii) Intelligence Test It measures 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.

Question. The workers of ‘Vyam Ltd.’ are unable to work on new and hi-tech machines imported by the company to fulfill the increased demand. Therefore, the workers are seeking extra guidance from the supervisor. The supervisor is overburdened with the frequent calls of workers. Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently? Also state any three benefits that the workers will derive by the decision of the supervisor. 
OR
The workers of ‘Gargya Ltd.’ are unable to work on new computerised machines imported by the company to fulfil the increased demand. Therefore, the workers are seeking extra guidance from the supervisor and the supervisor is overburdened with the frequent calls of workers. Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently. Also state any three benefits that the workers will derive by the decision of the supervisor. 
Answer: Training of Employees/Vestibule Training/On the Job Training. The benefits that workers will derive by the decision of the supervisor are :
(i) It helps in promotion and career growth due to improved skills and knowledge.
(ii) It helps them to earn more due to the improved performance.
(iii) It reduces accidents as the employees are more efficient to handle machines.
(iv) It increases the morale of the employees as the employees are more satisfied.

Question. A company manufactures very sophisticated switch gears used in automatic cars. For this, the company uses hi- tech machines. Most of the times, the workers of the factory remain idle because of lack of knowledge regarding the use of these hi-tech machines. The frequent visits by the engineers and constant supervision of the foreman result into high overhead charges. Explain the way by which this problem can be overcome. Also state how this will help the employees.
Answer: This problem can be overcome through training (Vestibule Training). This will help the employees in :
(i) Improving their skills and knowledge leading to better career.
(ii) Enhancing the earning capacity because of better performance.
(iii) Increasing efficiency.
(iv) Increasing the satisfaction and morale of employees.
(v) Reducing accidents.

Question. Manu, a Chief Manager in a company using highly sophisticated machines and equipment wants that every employee should be fully trained before using the machines and equipment. Suggest and describe the best method of training that Manu can use for training of employees.
Answer: Vestibule Training.
(i) Vestibule Training is a method of training which is imparted away from the work place with the help of equipment and machine identical to those at the place of work. (ii) The training is conducted away from actual work floor.
(iii) It is generally used where the employees are required to handle sophisticated machinery.

Question. Explain any two internal sources of recruitment.
Answer: Two internal sources of recruitment are :
(i) Transfer : Vacancies in one branch or department may be filled by shifting people from some other branch or department of the company.
(ii) Promotion : Vacancies at higher levels may be filled up by shifting a lower level employee. This may be done on the basis of merit and/or seniority.

Question. State any three merits of external sources of recruitment.
OR
Explain the merits of external sources of recruitment.
Answer: Merits of external sources of recruitment :
(i) The management can attract qualified and trained people to apply for vacant jobs in the organisation.
(ii) The management has a wider choice while selecting the right candidate.
(iii) External sources bring fresh talent in the organisation.
(iv) External sources encourage competitive spirit among the existing staff.

Question. Aakanksha, Nikita and Parishma are the owners of a handicraft unit in the urban area of Dibrugarh in Assam, which is involved in the manufacturing and marketing of Sital Pati, traditional mats and Jappi (the traditional headgear). They decided to shift this manufacturing unit to a rural area with an objective of reducing the cost and providing job opportunities to the locals. They followed the functional structure in this organisation with a view to increasing managerial and operational efficiency. They assessed and analysed the type and number of employees required, keeping in mind that they had to encourage the women, and the people with special needs belonging to the rural area. State the next three steps that they will have to undertake, for obtaining satisfied workforce for their handicraft unit. 
Answer: The next three steps in the process of staffing are as stated below :
(i) Recruitment is the process of searching for prospective employees and stimulating them to apply for the jobs in the organisation.
(ii) Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment.
(iii) Placement and Orientation refers to the employee occupying the position or post for which the person has been selected, introducing the selected employee to other employees and familiarising with the rules and policies of the organisation.

Question. Explain briefly ‘transfers’ and ‘promotions’ as internal sources of recruitment. 
Answer: Transfers :
(i) Transfers involve 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.
(ii) It may lead to changes in duties and responsibilities, working condition etc., but not necessarily salary.
Promotions :
(iii) Promotions involve shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay.
(iv) This practice helps to improve the motivation and increases loyalty and satisfaction level of employees.

Question. Explain briefly ‘Casual Callers’ and ‘Labour Contractors’ as external sources of recruitment.
Answer: Casual callers:
(i) It is an external source of recruitment in which a list of job seekers is prepared and screened to fill the vacancies as they arise, from the database of unsolicited applications kept in the office.
(ii) It reduces the cost of recruitment. Labour Contractors:
(i) It is an external source of recruitment in which a Labour Contractor maintains close contacts with labourers and provides the required number of unskilled workers at short notice.

Question. State any four advantages of external sources of recruitment.
Answer: Four advantages of external sources of recruitment are :
(i) Infusion of Fresh Blood : Recruitment from external sources leads to infusion of new blood who may think in innovative ways. External recruitment brings talented candidates.
(ii) Wider Choice : When vacancies are advertised widely, a large number of applicants from outside the organisation apply. The management has wider choice while selecting the people for job.
(iii) Qualified Personnel : By using external source of recruitment, the management can attract qualified and trained people to apply for the vacant jobs in the organisation as through internal sources of recruitment, only existing employees can apply for vacant jobs who may not fulfill the job specifications.
(iv) Competitive Spirits : If a company recruits through external sources, the existing staff will have to compete with the outsiders. They will work harder to show better performance. This develops a competitive spirit in existing employees of organisation as they feel insecure because of the outsiders.

Question. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human Resource Manager of ‘Senor Enterprises Ltd.’ decided to leave the company. The Chief Executive Officer of the company called Jyoti, the Human Resource Manager, and requested her to fill up the vacancies before leaving the organisation. Informing that her subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti suggested that if she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer agreed for the same. Miss Alka Pandit contacted ‘Keith Recruiters’, who advertised for the post of marketing head for ‘Senor Enterprises Ltd’. They were able to recruit a suitable candidate for the company. Raman’s vacancy was filled up by screening the database of unsolicited applications lying in the office.
(i) Name the internal/external sources of recruitment used by ‘Senor Enterprises Ltd.’ to fill up the above stated vacancies.
Answer:
(i) Sources of recruitment used to fill up the vacancies are :
(a) Promotion
(b) Placement Agencies and Management Consultants
(c) Casual Callers
(ii) Merit of each of the above identified source of recruitment : Promotion :
(a) It helps to improve motivation, loyalty and satisfaction level of employees.
(b) It has a great psychological impact over the employees because a promotion at a higher level may lead to a chain of promotions at lower levels in the organisation.
(c) It is a more reliable way of recruitment since the candidates are known to the organisation.
(d) It is a cheaper source of recruitment.(Any one) Placement Agencies and Management Consultants :
(a) They recommend only suitable candidates to their clients.
(b) It helps in enticing the needed top executives from other companies by making the right offers. Casual Callers :
(a) It reduces the cost of recruiting workforce in comparison to other sources.
(b) It saves time.

Question. After passing his secondary school examination, David left the school at the age of 15 years and started getting training under his father. His father, a renowned electrician, had worked for many companies. He everyday started accompanying his father on work and watched him carefully while working. David was a good learner and learnt the techniques of work quickly. Now his father started passing on the tricks of the trade to David. With the passage of time David acquired a high level skill and became a well-known electrician at Indore. Big business-houses started calling him for electrical -wiring.
(i) Name the method of training discussed in the above para.
(ii) State any three benefits which David could get on being trained. 
Answer:
(i) Apprenticeship Training
(ii) Benefits which David could get on being trained :
(a) It may lead to his promotion and career growth due to improved skills and knowledge.
(b) It will help him to earn more due to improved performance.
(c) It will reduce accidents as he will be more efficient to handle machines.
(d) It will increase his satisfaction and morale.

Question. Define ‘Training’ and ‘Development’.
Answer: Training : Training refers to the process of increasing the knowledge, skills and abilities of employees for doing a particular job. It is a systematic and continuous process for improving skills. Training aims to enable the employees to perform their job better. Development : Development refers to overall growth of the employees. It seeks to prepare employees for handling more responsible and challenging jobs by developing their hidden qualities and talents.

Question. Why is training important for the employees? State three reasons.
Answer: Training is important for the employees because :
(i) It improves skills and knowledge leading to better career.
(ii) It enhances the earning capacity because of better performance.
(iii) It increases efficiency of workers/employees.
(iv) It increases the satisfaction and morale of the employees.
(v) It reduces accidents.

NCERT Solutions for Class 12 Business Studies Chapter 6 Staffing Long Answer Type Questions

Question. Training is a life-long necessity, both for the employees as well as for the organisation. Justify the statement by giving three arguments each in favour of the employees and the organisation.
OR
“Training is beneficial both for the organisation as well as for the employees.” Explain any three benefits of training towards the organisation and any three towards the employees.
Answer: Training is a life-long necessity for employees :
(i) It leads to better career of the individual.
(ii) It helps them to earn more by increased performance.
(iii) It increases the satisfaction and morale of the employees.
(iv) It makes the employees more efficient to handle machines and therefore, lesser prone to accidents. Training is a life-long necessity for organisations :
(i) It avoids wastage of efforts and money by systematic learning of skills.
(ii) It enhances employee’s productivity leading to higher profits in the organisation.
(iii) It equips the future manager who can take over in case of an emergency.
(iv) It reduces absenteeism and increases turnover of the organisation by increasing employees' morale.
(v) It helps in obtaining an effective response to a fast changing environment.

Question. Despite internal sources of recruitment being economical, why do companies not always use this source? State any five reasons.
Answer: The companies do not always use internal source of recruitment despite being economical because of the following reasons :
(i) It is an incomplete source as no organisation can fill all its vacancies from internal sources.
(ii) The employees may become lethargic if they are sure of time bound promotions.
(iii) Spirit of competition among the employees may be hampered.
(iv) Frequent transfers of employees may often reduce the productivity of an organisation.
(v) Complete reliance on internal recruitment involves danger of ‘inbreeding’ by stopping ‘infusion of new blood’ into the organisation.
(vi) A new enterprise cannot use internal source of recruitment.
(vii) There is limited choice of candidates when the vacancies are to be filled from internal source of recruitment.

Question. What is meant by Recruitment ? Explain any four external sources of recruitment.
Answer:
External sources of recruitment :
(i) Recommendation of Employees : Many firms encourage their employees to recommend the names of their relatives and friends for employment. Such applicants are likely to be good employees because their background is sufficiently known.
(ii) Labour Contractors : Labour contractors keep in touch with labourers in the villages and bring them to the places where they are needed. On payment of commission, they are ready to supply required number of workers.
(iii) Placement Agencies and Management Consult-ants : Management consultancy firms help organi-sations to recruit technical, professional and mana-gerial persons. They specialise in middle level and top level executive placements. They maintain the data of persons with different qualifications and skills and advertise the jobs on behalf of their cli-ents.
(iv) Campus Recruitment : Universities, colleges, institutes of management and technology, etc., provide technicians, engineers, chemists, accountants, etc. Many big organisations maintain a close link with the universities, technical and management institutes to recruit qualified personnel for jobs. This is referred to as campus recruitment.
(v) Advertisement : Advertisement in newspapers and journals is a common method of encouraging people to apply for the jobs. The main advantage of this method is that sufficient information about the organisation and the job can be given to allow self-screening by the applicants. It attracts a large number of candidates. (vi) Employment Exchange : Employment exchange are government run organisation that registers the names of job seekers to maintain records of their qualifications, experiences, etc. Employers inform the exchanges about the vacancies. These exchanges refer the names of people possessing required qualities and skills to the employers.

Question. Define Recruitment. State any five merits of internal sources of recruitment.
Answer: “Recruitment is the process of searching for prospective candidates and stimulating them to apply for jobs in the organisation.” Five merits of internal sources of recruitment are :
(i) Familiarity with the policies : Internal sources of recruitment are considered as best because the internal candidates are well familiar with the policies of the enterprise. Management does not have to exert in familiarising them with the rules, policies, etc. of the company.
(ii) No need of references : The organisation knows the abilities and loyalties of its employees. It does not require anybody’s reference about their ability, integrity and moral character.
(iii) Economical : Recruitment from within the organisation is economical in the sense that employers do not have to spend on the advertisement, contractors, etc. Moreover, it also saves time required in administering various tests, etc.
(iv) Balancing of Staff : There may be some departments having ample staff and some others having shortage of staff. Transfers as internal source of recruitment help in solving the problem of overstaffing and understaffing in the different departments of the organisation.
(v) Enhances Employees’ Morale : Promotion within the organisation enhances employees’ morale. The policy of internal promotion makes them enthusiastic and optimistic. Promotions within organisation are positive morale builders.

Question. What is meant by Recruitment? State any five limitations of internal sources of recruitment.
Answer: Meaning of Recruitment : Limitations of internal sources of recruitment :
(i) When vacancies are filled through internal promotions, the scope for fresh talent is reduced.
(ii) The employees may become lethargic, if they are sure of time bound promotions.
(iii) The spirit of competition among the employees may hamper.
(iv) Frequent transfers of employees may reduce the overall productivity of the organisation.
(v) It may not be possible for an organisation to fill all vacancies from internal sources.

Question. There were two vacancies for the post of Assistant Manager in ‘Gyan Electrics Private Ltd.’ ‘Parth,’ the Human Resources Manager identified one suitable candidate ‘Vishwas’ from within the organization and promoted him to the post of Assistant Manager. For another post, the Manager ‘Parth’ took help of a placement agency and selected ‘Saleem’. After six months, Parth observed that ‘Vishwas’ performance was much better than
Saleem’s performance though ‘Vishwas’ was less qualified than ‘Saleem’. Hence, ‘Parth’ decided that in future he will not make any appointment with the help of an outside source. Explain any four reasons on the basis of which ‘Parth’ would have taken the above decision.
Answer: Reasons on the basis of which ‘Parth’ would have taken the decision not to make appointment with the help of an outside source are : 
(a) Internal sources are more reliable way of recruitment since the candidates are already known to the organisation whereas external sources.
(b) If internal source are used, there is no need for induction training as the employees are already familiar with the organisation.
(c) Internal sources help to improve the motivation, loyalty and satisfaction level of existing employees.
(d) Promotion at a higher level may lead to a chain of promotions at lower levels in the organisation.
(e) They simplify the process of selection as the candidates are already known to the organisation.
(f) They help in adjustment of surplus staff in those departments where there is shortage of staff.
(g) Filling of jobs internally is cheaper as compared to getting candidates from external sources.