NCERT Solutions for Class 12 Business Studies

Principles and Functions of

Management Chapter 6

Staffing Class 12
Chapter 6 Staffing Exercise Solutions
Short answers: Solutions of Questions on Page Number :
175

Question 1 : Briefly enumerate the important sources of

recruitment.

Solution :
Recruitment refers to the process of searching and
attracting the required personnel for a job. In other words,
it is the process of finding the potential candidates and
instigating them to apply for the job. The following are
the two important sources of recruitment.

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i. Internal sources: Internal sources of recruitment refer
to the sources that are within the organisation. That is,
through internal sources the jobs are filled up from inside
the organisation. It can take the form of transfers and
promotions. Through transfers, the job of a specific
profile is filled by shifting a suitable person working in
another department of the organisation to the
concerned department. Similarly, through promotions,
higher position job vacancies in the organisation are filled
by promoting the lower level employees.
ii. External Sources: External sources of recruitment
refer to the sources of recruitment that are outside the
organisation. Through external sources the jobs in an
organisation are filled by bringing in new people. For
fresh talent and wider choice external sources are used.
For example, one of the external sources of recruitment is
'direct recruitment' which involves putting up a notice
board outside office and then following the recruitment
process on a specified date. Similarly, placement agencies
work as an external source as they act as a match maker
for the job seekers and job providers.

Question 2: What is meant by recruitment? How is it

different from selection?

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 Solution :
Recruitment refers to the procedure of finding and
stimulating the required candidates to apply for a
particular job. As against this, selection is the procedure
of screening and choosing the required candidates out of
the gathered pool. The following points highlight the
difference between recruitment and selection.

Basis of Recruitment Selection

Difference
Meaning Recruitment refers Selection refers to the
to the process of process of choosing the
finding and right candidate out of the
instigating the gathered pool developed at
required personnel the time of recruitment.
for a job.

Sequence In the staffing In the staffing process,

process, recruitment selection is at the third
is at the second stage and succeeds
stage. recruitment.

Employment The candidates The candidates who

Contract gathered under uccessfully complete

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 recruitment are not the selection process are
offered any offered an employment
employment contract by the organization
contract from the containing such information
organisation. as date of
joining, terms and
conditions, etc.
Characteristic Recruitment process Selection process involves
involves attracting choosing only the
as many persons as appropriate candidate and
Possible for the job. rejecting the non-suitable
ones.

Question 3: Define training. How is it different from

education?

Solution :
Training refers to the enhancement of skills, abilities and
competence required for a specific job profile. On the
other hand, education refers to the process of improving
the overall knowledge and understanding of the
employees. The following points highlight the difference
between training and education.

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Basis of Training Education
Difference
Meaning Training implies Education implies
increasing the skill increasing the
s and abilities overall l knowledge
required to perform a and understanding
specific job. of the employees.
Scope Training is a narrow Education is a
concept and wider concept and
relates to relate
development of s to the overall
understanding development of
relating to only a understanding.
specific job.
Focus It focuses on the It focuses on the
goals of the individual goals.
organisation.

Question 4: Distinguish between training and

development.

Solution :
Training and development are related yet distinct
concepts. Though both the concepts focus on
improvement of an individual but the perspectives are
different. Training on one hand refers to providing the
skills and abilities for a particular job. Development on

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 the other hand, refers to the concept of growth of an
individual as a whole. The following points highlight the
difference between training and development.

Basis of Training Development

Difference
Meaning Training refers to the process Development refers
of enhancing the skills and to the process of
competence of an employee overall growth of an
that are required to perform employee.
a specific job.
Focus The focus of training is the The focus of
specific job development is
requirement and is thereby, overall
job-oriented growth and is
thereby,
careeroriented.
Scope Training is narrow in scope Development is
and focuses wider in scope and
on how one can become focuses on the overall
more efficient personality
in the intended job. development of the
employee. Training is
a part of
development.

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

Solution:
Internal sources of recruitment refer to the sources that
are endogenous to the organisation, that is, within the
organisation. There are two ways of filling the jobs
internally, namely transfers and promotions. It has an
advantage of being more economical than the other
sources of recruitment. Filling the jobs through internal
sources is cheaper in terms of time as well as money is
listed below:
1. Internal recruitment also simplifies the process of
selection and placement. The candidates that are already
working in the enterprise can be evaluated more
accurately and economically. This is a more reliable way
of recruitment since the candidates are already known to
the organisation.
2. Transfer is a tool of training the employees to prepare
them for higher jobs. Also people recruited from within
the organisation do not need induction training.
3. Transfer has the benefit of shifting workforce from the
surplus departments to those where there is shortage of
staff. Thus, in contrast to other sources, the internal
sources of recruitment are more economical in
nature.

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Question 6: What is the importance of staffing function
in today's environment?

Solution :
Staffing is an important function of management as it
takes care of the manpower requirement of any
organisation. In today's environment with rapid changes
taking place in technology, size of the organisations, etc.
finding the right people for the job becomes critical. In
such a scenario, proper staffing process plays an
important role in the organisations. Following are the
highlighted benefits of staffing in the current world
scenario.
(i) Finding Competent Personnel: Staffing helps in
finding and choosing the right personnel
required for a job.
(ii) Improves Efficiency: By ensuring that right people
are placed for right jobs, the overall
efficiency and performance increases.
(iii) Growth of the Organisation: It ensures survival and
growth of the organisation by
appointing efficient and competent employees for various
jobs.
(iv) Optimum Utilisation of Human Resources: Through
proper manpower planning, staffing
prevents over-utilisation or underutilization of manpower.
In addition, it avoids interruption in

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working efficiency by suggesting, in advance if there is
any unfilled job.
(v) Job Satisfaction: Compensation and fair rewards
given to the employees provide them selfconfidence
and job-satisfaction. It encourages them to work diligently
and give their best to the
organisation.

long answers : Solutions of Questions on Page Number

: 175

Question 1: Define the staffing process and the various

steps involved in it?

Solution :
Staffing process refers to the procedure of filling the
vacancies and keeping them filled. It focuses on timely
fulfillment of the human resource required within the
organisation. According to 'Theo Haimann', 'staffing
pertains to recruitment, selection, development, training
and compensation of subordinate managers. This
definition includes the steps involved in the staffing
process. Following is a brief description of various steps
involved in staffing. various sources that includes internal
sources (transfers and promotions) and external sources

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(advertising and placement agencies). It forms the basis
for the selection process by attracting the aspirants
towards the organisation.
(iii) Selection: Selection involves choosing the right
candidate out of the gathered pool of aspirants which is
created after recruitment process. It is a rigorous
procedure and comprises of series of tests, interviews, etc.
The candidates who are not able to negotiate the selection
process are rejected. It ensures that only the competent
and the best ones are selected for the job. It is a
highly important process as it forms the basis for working
efficiency of the organisation. 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: Once the selection is
done it becomes important to make the selected
employees familiar with the working environment of the
organisation. Induction involves giving a brief overview
about the workplace, introducing them to other employees
and the managers and making them comfortable with the
work environment. Orientation is, thus, introducing the
selected employee to other employees and familiarising
him with the rules and policies of the organisation.
Placement refers to occupying the position by the
employee for which he has been selected.

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(v) Training and Development: Next step in the staffing
process is training and development of the employee.
Both the process emphasis on improving the employee
competence. Training is a process of increasing the
employee's capabilities and skills required for performing
the job. Development, on the other hand, focuses on the
overall growth of the employee by enhancing his
thinking and understanding capabilities. They help the
workers to upgrade their knowledge and
increase their efficiency. Moreover, training and
development motivates the workers and
provides them opportunities for growth and career
development.
(vi) Performance Appraisal: Performance appraisal is an
important aspect of any organization as it helps in
evaluating the work of the individuals. Appraisal implies
assessing the performance of the employee against certain
predetermined standards. In addition, under
performance appraisal the superior provides proper
feedback to the employee so that right measures can be
taken for increasing the working efficiency.
(vii) Promotion and Career Planning: Every employee
needs encouragement and motivation for continuing the
work with right efficiency. Promotion of the employee in
terms of position, pay, etc. helps in providing job
satisfaction to the employee and encourages them to

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realise their potential. Promotions serve the long term
interests of the employees.
(viii) Compensation: Worth of the job is an important
aspect to determine. All organisations need to establish
the right pay or salary for each job. Compensation entails
the price of a job along with the rewards that the
employee deserves. Compensation provided to the
employee can be in direct terms (that is, wages and
salaries) as well as in indirect terms (such as insurance,
bonus, etc.).

(i) Estimation of the Required Manpower: The process

of estimating manpower requirement is the basic step in
the process of staffing. It refers to knowing the number
and the kind of persons that are required in the
organisation. Estimation process involves two steps-
workload analysis and workforce analysis. Work load
analysis implies an estimation of the number and the kind
of persons required for various jobs. On the other hand,
workforce analysis implies an estimation of the existing
persons. The two-step analysis reveals whether there is
any overstaffing or understaffing in the organisation and
thereby, forms the basis of the staffing process. For

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example, a situation of understaffing would imply that
more personnel are required to be appointed and a
situation of overstaffing would imply that some of the
existing personnel need to be removed.
(ii) Recruitment: It refers to enlisting and searching the
suitable candidates for the job. It is the process of
searching the appropriate people for the job and
influencing them to apply for the job. Recruitment creates
a pool of prospective candidates for a job. It involves
searching through

Question 2: Explain the procedure for selection of

employees.

Solution :
Selection is a procedure to choose the appropriate
candidates out of the numerous aspirants. It is a rigorous
process as it involves various stages of tests and
interviews. Selection process aims at getting the best out
of the recruited pool so that work efficiency can be
maximised. Following are the steps involved in the
selection process.

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 •It helps the manager eliminate unqualified or unfit job seekers based on
the information supplied in the application forms.

Preliminary
screening

•An employment test is a mechanism that attempts to measure certain

characteristics
of individuals.
•These characteristics range from aptitudes, such as manual dexterity, to
Selection Tests
intelligence

•Interview is a formal, in-depth conversation conducted to evaluate the

applicant’s suitability for the job.
•Sometimes, the individual may also seek information regarding the
organisation in such interview.
Employment
Interview

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 •Organisation request names, addresses, and telephone numbers of
references.
•The purpose of verifying information and, gaining additional information
on an applicant.
Reference and
Background Checks

•The final decision has to be made from among the candidates who pass
the tests, interviews and reference checks.
•The views f 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.
Selection Decision

•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.

Medical Examination

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 •Job offer to those applicants who have passed all the previous hurdles.
•Job offer is made through a letter of appointment/confirm his
acceptance.

Job Offer

•Once the job letter is given, the candidates have to fill-up some forms
that are necessary for the future references.
•Contract of employment comprises of details such as salary, date and
terms of joining, leave rules, working hours, allowances, etc.
Contract of
Employment

4. Which methods of training and development should

be company initiate? Explain giving reasons.

Solution:
The company can use ‘on the job’ and ‘off the job’
training methods.
On the Job Methods:
(i) Apprenticeship Programs
(ii) Coaching
(iii) Internship Training
(iv) Job Rotation

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Off the Job Methods:
(i) Class Room Lectures/Conferences
(ii) Films
(iii) Case Study
(iv) Computer Modelling
(v) Vestibule Training
(vi) Programmed Instruction.

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

Solution:
• Lack of trained workforce
• Lack of personnel to provide customer service
• Inefficient maintenance of data.

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2. How do you think it can be resolved?

Solution:
• Proper training to be provided.
• Incentives to be given.
• Proper maintenance of data.

(iii) 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?

Solution:
• Should provide extra facilities to the crewmen like
insurance, education to their children, healthcare
etc
• Intervals should be given.
• Work must be restricted to 8 hrs a day.

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

Solution:
Yes it is possible to modify the behavior by planning
coaching training. In this method, the superior guides and
instructs the trainee as a coach. The coach or counselor
sets mutually agreed upon goals, suggests how to achieve
these goals, periodically reviews the trainees progress and
suggests changes required in behavior and performance.
The trainee works directly with a senior manager
and the manager takes full responsibility for the trainee’s
coaching. Classically the trainee is being groomed
to replace the senior manager and relieve him from some
of his duties. This gives a chance for the trainee to
learn the job also.

(iv) 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

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complete charge of the company’s Human Resource
Department.
Questions

1. Point out, what functions is she supposed to

perform?

Solution:
Functions:
• 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. What problems do you foresee in her job?

Solution:
• Qualified candidate may not be available
• Demand for a higher pay.

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• After training, employee may leave the organisation.

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

efficiently?

Solution:
• She can use all possible sources of recruitment.
• Consult an expert to observe and form good policy to
recruit and retain candidates.
• Maintain cordial relationship with workforce.

4. H ow significant is her role in the organisation?

Solution:
Her role is significant concerned with timely appointment
of competent manpower and ensuring effective
and efficient utilisation towards main objectives,
organisational, individual and social.

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