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BUSINESS STUDIES XII

CHAPTER – 6 STAFFING
ONE MARK QUESTIONS WITH ANSWERS

Q.1 How is staffing a continuous process? State.


Ans. Staffing is a continuous process because new jobs be created and some of the existing
employees may leave the organisation.

Q.2 State the merits of internal sources of recruitment.


Ans. Merits of internal sources of recruitment:

a. Motivates employees as promotion at a higher level may lead to a chain of promotions


at lower levels in the organisation.
b. Simplifies the process of selection as the candidates are already known to the
organisation.
c. No need for induction training as the employees are already familiar with the
organisation.
d. Helps in adjustment of surplus staff in those departments where there is shortage of
staff.
e. Economic source of recruitment.

Q.3 What is meant by ‘Induction Training?


Ans. Induction training means introducing the selected employees to other employees and
familiarising him with the rules and policies of the organisation.

Q.4 Name the concept related : (i) searching for qualified people. (ii) discovering the most
suitable candidate to fill the vacant job position.
Ans. (i) Recruitment (ii) Selection.

Q.5 Name the function of management that recognises the importance of the every single
person employed by an organisation.
Ans. Staffing

Q.6 State the meaning of staffing. Why is staffing a continuous process in an existing
enterprise?
Ans. Staffing simply means ‘finding the right people for the right jobs’. It includes human
resource planning, recruitment. selection, training, development, promotion, compensation
and performance appraisal of workforce.
In an existing enterprise, staffing is a continuous process because new jobs may be created
and some of the existing employees may leave the organisation.

Q.7 The staffing function has assumed greater importance these days. Why?

Presented by Raman Sachdeva


1 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
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BUSINESS STUDIES XII

Ans. Because of (i) Rapid advancement of technology, (ii) Increasing size of organisation
and (iii) Complicated behaviour of human beings.

Q.8 How does staffing help to ensure higher performance of employees?


Ans. Staffing ensures higher performance by putting right person on the right job.

Q.9 How does staffing help to ensure the continuous survival and growth of the enterprise?
Ans. Staffing ensures the continuous growth and survival of the enterprise through the
succession planning for managers.

Q.10 How does staffing help to improve job satisfaction and morale of employees?
Ans. Staffing improves job satisfaction and morale of employees through objective
assessment and fair reward of their contribution.

Q.11 Human resource management (HRM) is the most important task. Why?
Ans. The success of an organisation in achieving its goals is determined to a great extent on
the competence, motivation and performance of its human resources.

Q.12 Staffing is referred to as both a line as well as a staff activity. Why?

Ans. Staffing is both a function of management just like planning, organising, directing and
controlling as well as a distinct functional area of management (i.e., Human Resource
Management) just as marketing management and financial management.

Q.13 Staffing is the responsibility of all managers. List any two responsibilities performed by
a manager.
Ans. (i) Placing the right person on the right job.
(ii) Training employees to improve their performance.

Q.14 What is considered to be the most important resource of an organisation?


Ans. Human capital.

Q.15 Distinguish between workload analysis and workforce analysis.


Ans. It means assessment of the number and types of human resources necessary for the
performance of various jobs and accomplishment of organisational objectives.
It shows the number and tope of human resources available and reveals whether an
organisation is understaffed, overstaffed or optimally staffed.

Q.16 Give the meaning of ‘Selection’ as a step in the process of staffing.


Ans. Selection is the process of identifying and choosing the best person (s) out of a number
of prospective candidates for job.

Q.17 What is the objective of preliminary screening?

Presented by Raman Sachdeva


2 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
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BUSINESS STUDIES XII

Ans. To eliminate unqualified and unfit job seekers based on the information supplied in the
application form.

Q.18 Name the type of selection tests which are good indices of a person’s future success
score.
Ans. Aptitude test

Q.19 Give the main difference between aptitude test and trade test.
Ans. Aptitude test is a measure of individual’s potential learning new skills, while trade test
measures the existing skills (professional knowledge and proficiency) of the individual.

Q.20 Why are personality tests difficult to design and implement?


Ans. Personality tests provide clues to a person’s emotions, reactions, maturity and value
system, etc. These tests judge the overall personality. So, they are difficult to design and
implement.

Q.21 Selection process serves two important purposes. List them.


Ans. (i) It ensures that the organisation gets the best propel among the available
(ii) It enhance the self-esteem and prestige of those selected.

Q.22 Selection process may even continue after the offer of employment, acceptance and
joining of candidate. Why?
Ans. This is so because the process of selection involves judgement about the performance
potential of the candidate. The effectiveness of the selection process would ultimately be
tested in terms of on-the-job performance of the chose person.

Q.23 Stare the meaning of placement.


Ans. Placement means that the employee occupies the position or post for which he/she has
been selected.

Q.24 State the meaning of organisation.

Ans. Orientation means introducing the sleeted employee to he/she superiors, subordinates
and colleagues, and familiarising him/her with the rules and policies of the organisation.

Q.25 Name the three important aspects of staffing.


Ans. Recruitment, selection and training.

Q.26 Why has the importance of employee training these days?


Ans. Because in today’s highly sophisticated society, jobs have become more complex.

Q.27 What is ‘Performance appraisal’?

Presented by Raman Sachdeva


3 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
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BUSINESS STUDIES XII

Ans. Performance appraisal means evaluating an employee’s current and/or past performance
as against certain pre-determined standards.

Q.28 Define ‘Compensation’.


Ans. Compensation refers to all forms of pay or reward given to the employees.

Q.29 Enumerate any four factor which influence the design of any pay Plan.
Ans. (i) Legal factors (labour laws) (ii) Trade union (iii) Company policy (iv) Equity

Q.30 Name the most common method of recruitment of employees.


Ans. Advertisements through newspapers, journals, televisions, etc.

Q.31 Which source of recruitment is needed to bring new blood in the organisation?
Ans. External source of recruitment

Q.32 Name the method of training suitable for plumbers, electricians or iron workers.
Ans. Apprenticeship training (on-the-job method).

Q.33 Name the method of training in which trainees learn on the equipments they will be
using.
Ans. Vestibule training

Q.34 Name the method of training in which the trainee learns under the guidance of a master
worker.
Ans. Apprenticeship training

Q.35 What are the sources of employee training?

Ans.(i) In-house training centres and (ii) collaboration with training and educational
institutes.

Q.36 How does staffing help to ensure higher performance of employees?


Ans. Staffing helps to ensure optimum utilisation of resources by avoiding over-staffing and
understaffing. By avoiding over-staffing, it prevents under-utilisation of personnel and high
labour costs. By indicating the shortages of personnel, staffing avoids disruption of work.

Q.37 ‘Recruitment’ is one of the specialised activity performed by human resource


management. Mention any two other specialised activities of human resource management.
Ans. (i) Analysing jobs and collecting information about jobs to prepare job descriptions.
(ii) Developing compensation and incentive plans.

Presented by Raman Sachdeva


4 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

SHORT ANSWER QUESTIONS


Q.1. What is staffing?
Ans. Staffing means putting people to the job or finding right people for the job or finding
right people for the right job. Staffing is a function that includes estimating manpower
requirement, recruitment, selection, orientation, training, performance appraisal, promotion &
compensation of employees.

Q.2. Explain the process of staffing?


Ans. Following points highlight the process of staffing:

I. Estimating manpower requirements: It means determining how many persons are


required and of what type in the organisation & estimating the manpower requirement
would enable an assessment of no & types of human resource required for
performance of various jobs. It would also reveal whether the organisation in order
staff or over staff. In case of overstaff employee removal will be required & in case of
under staff the process of recruitment will be required.
II. Recruitment: It is the process of searching the prospective employees & stimulating
then to apply for jobs in the organisations. The main Objective of this step is to create
a poll of prospective candidate. Higher is the no. of people who apply for job, higher
will be possibility of getting suitable employees. It involves activities like
identification of source, assessment of their validity, choosing the best source &
inviting application.
III. Selection: It is process of identifying the best person out of a no. of prospective
candidate. It is process of rejecting the not suitable candidates out of the total
application & it involves various steps like.
Preliminary screening
Selection test
Interview
Reference Check
Selection
Medical examination
Job offer
IV. Placement & orientation: Placement refers to occupying the position for which
person is selected & orientation means introducing the selected employees to his
superior subordinate & policy of organisation. It helps the employees to adjust to real
situation.
V. Training & Development: Training means the process by which the skill & ability of
people are improved. It enables the employee to do his job better and development

Presented by Raman Sachdeva


5 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
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BUSINESS STUDIES XII

makes the overall growth of the employees. It is the process by which employee attain
the skills for handling higher jobs in future.
VI. Performance Appraisal: It means evaluating the performance of employee against
certain standards for e.g. The standard is the produce 20 bottles in a day & 600 in the
month his performance will be evaluating on this basis at the end of the month.
Appraisal is read for various purposes like need for training, promotion, increment
etc.
VII. Promotion and carrier planning: This become necessary for all organisation where
manager need to encourage their employees need to grow to their full potential at
promotion is an important part of employees carrier. It may involve transfer of
employees, shifting them to higher position etc.
VIII. Compensation: It refers to all forms of pay or rewards given to employee. It involve
financial & indirect payment where financial includes wages, salary etc. & indirect
includes contribution to provident funds LIC etc.

Q.3. What are the different steps involve in the process of selection.
Ans. Selection is process of identifying and choosing the best person out of no. of candidate.
It involves following steps:

I. Preliminary screening: It help the manager to eliminate unqualified job seaker on


the basis of information supplied in the application.
II. Selection test: These tests measures various accepts like intelligence, personality,
aptitude etc. These tests include:
III. Interview: It is a formal conversation to determine the capability level of an applicant
by interviewer.
IV. Reference & back ground check: Here the references are read from employees for
the purpose of verifying information about applicant.
V. Selection: Those people who passed the test interview etc. are selected.
VI. Medical Examination: After selection but before the job candidate has to go through
various medical test. It is mainly read in job like police, military etc.
VII. Job offer: Here the letter of appointment is given that contain a contract including
terms and conditions, responsibility, salary, date of reporting etc.

Q.4. What are the different sources of requirement?


Ans. There are mainly 2 sources of requirement:

I. Internal sources: It means inviting candidates from within the organisation two main
sources of internal recruitment are:
a. Transfers
b. Promotions.

Presented by Raman Sachdeva


6 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

II. External sources: It means inviting candidates from outside the organisation.
a. Campus recruitment: It includes colleges & institutes that are popular sources of
recruitment.
b. Management consultants & placement agencies: These consultants helps the
organisation’s to recruit technical, professional & managerial person. They maintain
data of persons with different qualification.
c. Employment exchanges: These are run by govt. & help in matching demand &
supply by serving as a line between employers & candidates.
d. Advertisements: It is a commonly used method where advertisement given in
newspaper, magazine, etc. for the vacant post.
e. Direct recruitment: Here a notice is placed on notice board that mention the details
of the job available. This is mainly used for casual vacancies for unskilled & semi-
skilled labours.
f. Labour contractor: These people maintain contacts with labourers and they provide
semi-skilled or unskilled workers at a short notice on commission basis.
g. Casual callers: A company keep getting application of and on and whenever the
vacancies arises company make use of such application.
h. Recommendation of employee: At time company ask their employee to recommend
name of their relative friends etc. for employment. This is done with those employees
whose back ground is sufficiently known.
i. Web publishing: It is through certain website which are specially designed for the
purpose of providing information about joe-seeker & employees like naukari.com
time job.com etc.

Q.5. What are the advantages & disadvantages of internal sources of recruitment?

Ans. Merits:
a. Economical: It is an economical source of recruitment as no. time & money has to be
spend on adverting interviews etc.
b. Motivation: It gives motivation to existing employees; they perform better to get
further promotions.
c. Simple process: It simplifies the process of selection since people are already known.
d. Utilisation of surplus: It helps in adjustment of surpluses staff in those departments
where there is shortage.
e. Induction not required: There is no need of induction training since people are
already familiar with organisation.
f. Preparation of Managers: It helps in preparing managers for higher jobs using
transfers & promotion as a tools training.

Presented by Raman Sachdeva


7 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

Demerits:
a. Incomplete source: It is an incomplete sources because the existing staff may not
be sufficient to fill the vacancies. They may not fulfil the eligibility criteria.
b. Lethargic employees: Employees become lethargic if they are sure about the
time bound promotion.
c. Competition among employees: The spirit of completion among employees gets
hampered because they about their automatic promotion.
d. Loss of productivity: Very frequent promotion of transfer may lead to loss of
productivity.
e. Not suitable for new enterprise: A newly setup enterprise cannot use internal
source of recruitment because they not have any existing data for employees.
f. No opportunity for outsiders: They may be competent trained ad efficient
outsider who do not get opportunity for employment.

Q.6. What are the merits & demerits of external sources of recruitment?

Ans. Merits:
a. Wider choice: Management has a wide choice because through external sources it
gets large no’s of application.
b. Fresh: It brings new & fresh talent in the organisation which is not possible in
internal sources of requirement.
c. Completion spirit: The existing employees of company work very hard to improve
their performances & this benefits the organisation as whole.

Demerits:
a. Dissatisfaction among existing employees: Employees become dissatisfied
because their chance of promotion gets affected.
b. Costly process: It is costly because it involves advertising, placement agencies
etc.
c. Lengthy process: As compared to internal, it is a lengthy process because lots of
steps is to be taken business has to advertise, conduct tests, interviews etc.

Q. What are the difference between internal & external sources.


And.

Basis Internal External


Meaning Inviting candidates form within the Inviting candidates from outside
organisation the organisation to fill the
vacancies
Choice Limited choice Wide choice
Time It is less time consuming For filling the vacancies
Economy It is less expensive It is very costly as job vacancy

Presented by Raman Sachdeva


8 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
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BUSINESS STUDIES XII

has to be advertised.
Quality There is restricted choice of scope In this method the organisation
of fresh talent is reduced. can expect to get best & talented
candidate from outside this
means infusion of new blood
knew ideas into the organisation

Q.7. What is training of employees? And what are its benefits?


Ans. Training is a procedure in which people learn knowledge or skill for a definite purpose.
Training is read for giving practical knowledge to employees since they have only theoretical
knowledge form their education background.
Advantages:

To organisation:
a) Increase in productivity: A trained worker become efficient in his work his
productivity increases as well as the producer.
b) Higher profits: Better productivity of employees results in better quantity &
quality of product which generates higher profit for the business.
c) Future managers: It help in making managers for future who can take over
whenever read.
d) Reduces absents: By increasing morale of employee, it leads to reduction in
absenteeism & employee turnover.
e) Lesser supervision: Trained workers do have knowledge about their work
therefore lesser supervision is read.
f) Lesser accidents: Due to increased efficiency of trained employees about the
working of plant. Enhances of accident gets reduced.

Benefits to employees:
a) Help in promotion: Training improve the skills and knowledge of employee which
help in promotion and carrier growth.
b) Help in increasing the earning: Trained employees are able to care better than the
untrained one because of their skill enhancement.
c) Efficiency in operation: It makes employees more efficient to handle machines.
d) More satisfaction: It increases the level of satisfaction and morale of employees.

Q.8. What are the method of training?


Ans.

a) On the job: It refer to the method that is applied to work place. The training is given
while employees actual working. It is also known as learning while doing for e.g.
Internship training etc.

Presented by Raman Sachdeva


9 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

b) Off the job: It is a method of training where training is actually given away from the
work place. It is also known as learning before doing. for e.g. Conference, lectures
etc.

Q.9. What is apprenticeship training?


Ans. It is a method of training under which a trainee is kept under the guidance of master
workers or an experienced guide for an prescribed time period. It is designed to acquire
higher level of skills. the trainee is given lesser amount than the fully qualified worker
and when he becomes expert he gets the full charge of job position.

Q.10. What are the difference between on job and off the job training?
Ans.
Basis On the job Off the job
Aim Its aim at learning and earning Its aim at learning only
simultaneously.
Type of knowledge Training gets more of practices Training gets more of
but less of theoretical knowledge theoretical & less of practical
Training gets more of exposal of Training gets less of exposal
actual work. of actual work.

Q.11. What are the method of one the job training ?


Ans. Following are the methods:

a) Internship training: This method is adopted to make effective coordination


between theoretical knowledge & practical training in certain. Professions like
medical auditing & lawyers professions training is essential. This method makes
easier to understand the complications of a actual work to a training.
b) Job rotation method: It is a method where the employees has to rotate from one
job to another, from one department to other and from one work to another work
so that he may learn working of various departments. This methods is very famous
in case of hotel industry.

Q.12. What are the off the jobs training method?


Ans.

a) Conference & seminar method: Under this method top level managers holds
conference & share his views with the employees. He tells employees about the latest
development in their field & new ideas. workers can also get solutions of problem by
asking questions.
b) Case study method: This method is used to solve various management problems.
Worker is given a particular situation related to problem & he is asked to study its

Presented by Raman Sachdeva


10 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

various aspects and suggest the solutions. In this method workers lots of things which
handling a problem.
c) Vestibule training: Workers are trained is a separate part of the organisation. on a
specific job. This training is giver by specialised and expert the training gets
theoretical as well as practical knowledge. In This method a copy of actual
environment is created which helps the trainee to understand the work more closely.
d) Role playing: Under this method practical knowledge is given by giving roles of
managers, supervision, workers, customers etc. They all play role of various character
& trainee gets to learn how an actual life situation will be handle through play.
e) Discussion or class room training: In this method trainees assemble in a classroom,
attends the lectures given by specialist of the field. They gain specific knowledge &
remove their doubts & get clarification through discussion.

Q.11. What is development of employees & how it is different form training?

Ans. Development means the growth of employees at every level of management by an


organised process. It is concerned with overall improvement of skill of an employee.

Difference between training & Development

Basic Training Development


Meaning It is an activity to increase a It means growth of an employee in
particular skill & attitude to an overall way at all level of mgt.
perform a specific.
Purpose To perform in the best possible The purpose to make best possible
manner on a specific job utilization of employees
capabilities for any job.
Scope Training is a part of It is wider term and its include
development & its scope is educators learning and training
limited
Level of Training is given at lower and Development is concerned with
production middle level higher level manager
Duration Training is given for a fix period It is a continuous process not
of time. confined to a particular period of
time.
Depth of In depth knowledge is given for No in depth knowledge is provides
knowledge a specific field. for a specific field.

LONG ANSWER QUESTIONS


Q.1 “Staffing is the least important function of management in an established
organisation.” Comment.

Presented by Raman Sachdeva


11 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

OR
Name the function of management which concentrates on employing and retaining the
right person at the right place. Explain why this function is important in any
organisation?
Ans. It is the staffing function which concentrates on employing and retaining the right
person at the right place. Staffing is an important function of management in all organisation-
in a new organisation as well as in an established organisation. Importance of staffing
function is an follows:

i. To fill the vacancies: In all the organisations, there is a need for people to perform
work. Staffing function fulfils this requirement. It is staffing, which makes the
structure a sound organisation to achieve the organisational goals.
ii. Right person for the right job: Staffing finds the right person for the right job.
While selecting a person for a specific position, the required qualification, experience,
attitudes, commitment etc. are kept in mind.
iii. Effective use of physical resources: Without human resources, physical resources
are idle and unproductive. Scientific staffing and training is necessary to ensure
effective use of technology and other physical resources. Managers having
specialisation in procurement of employees can make available competent, able and
efficient staff.
iv. Optimum utilisation of human resources: Personnel department of the organisation
taken necessary step to use the surplus staff and recruit and select the employees,
whenever needed. Transfer and promotion policies are designed in such a way that
these are helpful in better utilisation of resources.
v. Motivation and morale: Staffing as a separate function is needed to motivate the
employees for better performance. Counselling, training and development
programmes, incentive plans, staff welfare and other personnel activities can be
effectively undertaken when there is a separate personnel department in the
organisation. All these functions motivate employees and develop higher employee
morale.
vi. Specialised function: Staffing is a specialised function and theory of knowledge
available on the subject is vast. All managers may not be well equipped in terms of
qualification, experience, attitude and aptitude to perform staffing function.
Managers, who have gained specialisation in the feed of personnel management,
should be assigned the job of staffing. There is a need to use such knowledge to
improve the performance of every organisation.

Q.2 Explain various types of selection/employment tests.


Ans. Important types of selection tests are discussed below.

Presented by Raman Sachdeva


12 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
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1. Achievement or Proficiency tests: These tests are designed to measure the


knowledge and skill acquired by the candidates relating to the job. They are used to
test the level of knowledge and proficiency acquired by the applicants. These tests
may be two types: verbal and motor.
a. Verbal tests: In a verbal test, candidates are given questions involving
problem situations for which the candidates have to suggest the solution. For
example, an applicant for the post of accounts clerk may be tested by asking
him questions relating to recording the business transactions in the accounting
books.
b. Motor tests: Motor tests involve physical manipulation of things. These are
designed to measure the capabilities and actual performance of the candidates
on the specific job. Achievement and proficiency is tested through such tests.
For example, the speed and accuracy of a typist or steno-typist can be tested
through Shorthand and Type Test. Such tests are also called trade test or
performance tests.
2. Psychological tests: Such tests are designed to measure the human behaviour. These
tests are based on the assumption that human behaviour at work can be predicted by
giving various tests to the individuals. Such tests include:
a. Intelligence tests: These tests are used to judge the mental capacity of the
applicants. They measure the individual learning ability, i.e., ability to catch or
understand instructions and also ability to make decision and judgement.
There are many verbal as well as non-verbal intelligence tests constructed by
the psychologists for different jobs. Intelligence tests are widely used in the
selection of personnel, for almost every kind of job from the unskilled to the
skilled ones.
b. Aptitude tests: Aptitude means the potential, which an individual has for
learning the skills required to do a job efficiently. Aptitude tests measure an
applicant’s capacity and his potential for development. Aptitude tests are the
most promising indices for predicting workers’ success.
c. Motivation or interest tests: These tests are designed to measure the
motivation or interest of the applicants. On the basis of such tests, it is
suggested what type of job may satisfy the candidate.
d. Situational tests: These tests combine aspects of both achievements and
personality testing. In such tests candidates are shown a real life situation and
then asked to take decision. These tests are designed to observe how job
applicants react to stressful but realistic situations.

Q.3 Why is employee training necessary in an organisation?


OR

Presented by Raman Sachdeva


13 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

Why is the employees’ training necessary in an organisation? Explain in brief any six
reasons.
Ans. Training is a necessary activity in all organisations. It plays a large part in determining
the efficiency organisation. Some of the major benefits of training are explained below.

i. Economic operations: Trained personnel will make economic and efficient use of
resources – men, money, material, machines and methods. This will lead to the
reduction in the cost of production per unit. There will be a great saving as training
reduces wastage and spoilage. This will result in economic operations. Thus, training
expenditure is treated as an investment in human resources.
ii. Increase in productivity: It helps to improve employee’s knowledge and skills,
which in turn increases the quality and quantity of production. Higher productivity
means higher profitability for thee organization.
iii. Reduced supervision: Training gives employees greater confidence. Trained
employees needs less supervision. They require greater freedom to handle their jobs
without close supervision. With reduced supervision a manager can widen his span of
control and spend greater time on more non-routine issue of the department. Properly
trained employees are more self-reliant because they are more confident about what to
do and how to do it.
iv. Standardisation of procedures: Training helps in standardisation of procedures.
With the help of training, the best available method of performing the work can be
standardised and taught to all the employees.
v. High motivation and morale: Training reduces the rate of labour turnover and
absenteeism and increases job satisfaction. This improves staff morale the self esteem.
With the help of training employees are able to direct the staff towards management
philosophy, mission, attitudes, work ethics, team work and greater cooperation and
loyalty.
vi. Development of prospective managers: Training equips the employees with
knowledge and skills needed for higher jobs. It can be used to identify promising men
with exceptional talent, creativity and initiative. These employees can then be further
trained for higher positions. It is better to promote people from within the
organization. Thus, training prepares and develops future mangers.

CASE STUDY

Case 1
A company X ltd. is setting up a new plant 0 in India for manufacturing auto components.
India is highly competitive and cost effective production base in this sector. X ltd. is planning
to capture about 40% of the market share in India and also export to the tune of at least $5
million in about 2 years of its planned operations. To achieve these targets it requires a highly

Presented by Raman Sachdeva


14 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

trained and motivated work force. You have been retained by the company to advise it this
matter.

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


(ii) Which sources of recruitment the company should rely upon? Give reasons for your
recommendation.
(iii) Outline the process of selection the company should follow with reasons.
(iv) Which methods of training and development should company use. Explain by giving
reason.

Case 2
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 company nires 800 persons and has an expression plan in hand
which may required another 200 persons, for various types of additional requirements. Ms.
Jayshree has been given complete charge of company’s Human resouce department.

 Point out, what function is she suppose to perform?


 What problems do you for see in her job?
 What steps is she going to take to perform her job efficiently?
 How significant is her role in the organisational?

Case 3
Zenith Ltd. is a highly reputed company and many people wantedto join this company. The
employees of this organisation are verry 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 Manger.
Vaibhav said that he was neither related to any of the employee f the organisation nor there
was any advertisement in the newspaper even then he was directly called from
IIMAhmedabad from where he was about to complete his MBA.

(a) The above discussion is indicating an part important function of management. Name the
function of management.
(b) The management function identified in part (a) follows a particular process. Explain the
step of the *of this process which is being discussed in the above para./

Case 4
Blue Heavens Ltd. purchased a new hi-tech machine from Germany for manufacturing high
quality auto components in a cost effective manner. but during the production process, the
manager observed that the quality of production was not as per standard. On investigation it

Presented by Raman Sachdeva


15 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in
BUSINESS STUDIES XII

was found that these was lack of knowledge amongst the employees of using these hi-tech
machines. So frequent visit of engineers was required from Germany. this resulted in high
overhead charges.
Suggest what can be done to develop the skills and employees for producing high quality
products by using these hi-tech machines. Also state how the employees or the organisation
will benefit from your suggestion.

Case 5
Ms. Neeta 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 hard which may require another 200 persons for various types of additional requirements.
Ms. Neeta has been given complete charge of the company’s Human Resource Department.

(a) State any two functions she must be performing.


(b) What problems do you foresee in her job? What steps is she going to take to perform her
job efficiently?

Case 6
Name the methods of recruitment in the following cases:
(i) A company gets applications on and off even without declaring any vacancy. However, as
and when the vacancy arises, the company makes use of such applications.
(ii) Casual vacancies of unskilled jobs when there is a rush of order or when some permanent
workers are absent.
(iii) Recruitment by which most of the senior positions of the industry as well as commerce
are filled.

Case 7
Name the methods of training:
(i) The trainee learns under the guidance of a master worker.
(ii) Trainees learn on the equipments they will be using, but training is conducted away from
the actual work floor.
(iii) Trainees work in some factory or office to acquire practical knowledge and skills along
with regular studies.

Presented by Raman Sachdeva


16 B.Com (H), M.Com, MBA, M.Phil, AMT, NET
17/2 (LGF) Jangpura Road, Bhogal
01124377255, 9811957255, 9210461650
www.solutionsacademy.co.in

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