BUSINESS STUDIES

CLASS – 12th (2023-2024)

Chapter 06 - Staffing

1. What do you understand by term Staffing? Introduce its meaning in your

words.

 The working of an organization depends upon the Human Resource of that

organization. The growth highly depends upon introduction of efficient and
quality staff.
 Staffing is the next step after planning and selection of the organization
structure.
 In this step the right people are placed in the right positions. This involves
various steps like recruitment, selection, training, development, promotion, and
compensation and performance appraisal of the workforce.
 Therefore, Staffing is a management function that entails hiring candidates who
are a good fit for the organization by evaluating their skills and knowledge and
assigning them specific roles based on their skill set.

2. Why staffing is important in an organisation?

Or
Why staffing is required for an organisation? What is the need for
staffing?

Ans - Importance of Staffing

No organisation can be successful unless it can fill and keep filled the various
positions provided for in the structure with the right kind of people.
Staffing is important for an organization for the following points.
 It helps in finding out the required workforce for various job roles.
 Placing the right people at the right positions makes the performance better.
 Continuous survival and growth of an organization is ensured through the
succession planning for the managers.
 Identification of workforce requirements and filling positions accordingly.
 It avoids disruptions by showing the exact shortages of personnel in
advance.
 Helps in improving the level of job satisfaction among the employees
through objective assessment and fair reward for their contribution.

3. What are the benefits/advantages of staffing for an organisation?

Ans. Staffing function must be performed efficiently by all organisations. If right

kind of employees is not available, it will lead to wastage of materials, time, effort
and energy, resulting in lower productivity and poor quality of products.
Staffing ensures the following benefits to the organisation.

 Best candidate: Staffing aids in the identification and selection of the best
candidate for the job.
 Increases Efficiency: It ensures that the right people are chosen for the right
job, which contributes to the organization’s overall efficiency and performance.
 Better growth opportunities: An organization has a better chance of
growing if the best candidates are chosen for the job.
  Manpower Planning: Staffing aids in manpower planning and proper
manpower utilization. It also aids in the filling of vacant job positions, ensuring
that working efficiency is maintained.
 Harmony: Through staffing the right kind of people are selected for the job,
whose selection is based on merit. These people are put to work after the
required background checks and provision of proper training. Hence the right
people at the right job will be able to work more efficiently, and the overall
harmony in the organisation will be kept intact as well.

4. What is human resource management? What is its role?

Ans.
 Human resource management (HRM) is the practice of recruiting, hiring,
deploying and managing an organization's employees.
 The role of HRM practices is to manage the people within a workplace to
achieve the organization's mission.
 The responsibilities of a human resource manager fall into three major areas:
staffing, employee compensation and benefits, and defining/designing work.
 Essentially, the purpose of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its employees.

5. How staffing as a part of human resource management (HRM) is

important?
Or
How staffing is related to human resource management (HRM)?

Ans. - Staffing as a Part of Human Resource Management

 This function is performed by the managers.
 In this the people or the resources are motivated and made acquainted with
the goals and objectives of the organization.
 It is considered as a generic function of the organization.
 The performance of an organization highly depends on the performance and
efficiency of the human resource.
 The success in achieving the goals and objectives of the organization is also
dependent on the level of motivation, determination and competence of the

6. Which specialised activities are included under human resource

management (HRM)?
Or
‘Human resource management includes many specialized activities
and duties.’ Explain.

Ans. Human Resource Management includes many specialised activities and

duties which the human resource personnel must perform. These specialised
activities/duties are:
 Searching for qualified individuals i.e., recruitment.
 Analysing the jobs to be performed, collecting information and preparing the job
descriptions.
 Developing pay structure, incentives plans and remunerations.
 Designing of training and development programs and structure for efficient
performances and career growth.
 Handling grievances and complaints.
 Maintaining labour relations and union management relations.
  Planning for social security and welfare of employees.
 Defending the company in lawsuits and avoiding legal compliance

7. State the process of staffing. (Very important)

Ans. Staffing Process-
1. Estimating Manpower Requirements:
The basic process involves the planning of manpower needed to fill various
positions in the organization and perform the tasks as per the objectives of the
organization as neither over-staffing nor under-staffing is a desirable situation. In
this step;
 Various job positions are created.
 Educational qualifications required, skill set needed to perform each job, prior
experience needed, etc is decided.

2. Recruitment:
A positive process with an aim to attract a large number of people with desirable
profiles to apply for positions vacant in the organisation. There are namely two
sources of recruitment, external and internal. In this step, the following steps are
done,
 The job descriptions are created.
 Medium of advertising is decided. The advertisement may be displayed on the
factory gate or may be published through print media or may be shared
through electronic media.
 This involves locating and determination of potential candidates. In this both
external and internal sources of recruitment are explored.

3. Selection:
This process involves the finding of or choosing the most appropriate candidate for
the job amongst the pool of applicants. This process involves a series of events
like tests and interviews. It also ensures,
 That the organization gets the best among all those who applied.
 The self-esteem and prestige of the selected ones are enhanced.

4. Placement and Orientation:

In this process the employee selected is given an introduction about the work
environment, he/she is made to see the workplace, and is introduced to
colleagues, subordinates and seniors.
 He/she is made to familiarise with the rules and regulations and policies of the
organization.
 Placement involves placing the selected employee at the position he is selected
for.
 Orientation is, thus, introducing the selected employee to other employees and
familiarising him with the rules and policies of the organisation.

5. Training and Development:

In this dynamic world it has become very important for people to keep themselves
upgraded as per the requirement and technologically advanced.
 This process of upgrading oneself requires training; the organization may have
in-house training centres or may have tie-ups with other organizations to train
their employees. Through these training programs employees get trained.
  These programmes motivate the employees and also their competencies are
strengthened. This also helps in retention of the employees and also attracts
talents.

6. Performance Appraisal:
Performance appraisal means to analyse the performance of the employees
against set benchmarks or based on previous performances. Basically, this is a
way to provide feedback on the performance of the employees of an organization.

7. Promotion and Career Planning:

Promotion means to upgrade the profile or position of a person. This acts as a
major push factor in the career objectives of people. Promotions motivate people
to work better. Promotion to a higher position means serving greater
responsibilities which in turn bring greater pay and job satisfaction.

8. Compensation:
Compensation is the payment or reward given to employees of an organization by
the way of salary and wages. This may be in various forms like salaries, incentives,
commissions, bonuses and indirect payment like medical facilities, etc.

8. How many aspects of staffing are there? Name them.

Ans. There are three aspects of Staffing-
The three aspects of Staffing are as follows:- Recruitment, Selection and Training

9. What do you mean by recruitment? How many sources of recruitment are

there?

Ans. Meaning of Recruitment:

 This means to find the suitable candidate for a job position. Advertising acts as
an integral part of the recruitment process and occurs through several channels
like newspaper, publications, campus interviews, etc.
 The objective of the recruitment process is to attract the potential candidates
for the suitable job profiles having adequate qualifications and characteristics
that may fit him or her for the job.
 In this suitable candidate are located and invited to apply for jobs in the
organization. The process involves various activities like:
o Identification of different sources of labour supply.
o Assessment of their validity.
o Choosing the most suitable source or sources.
o Inviting applications from candidates looking for a job.

There are two Sources of Recruitment. They are- Internal Sources and
External Sources

10. Explain briefly how internal source of recruitment works?

Ans. Internal Sources of recruitment are those sources in which the talent
acquisition is done from within the organization. No new members or employees
are recruited here.
There are two internal sources of recruitment that are:
a. Transfers:
  Recruitment through the source means placing of the employees or shifting
of the employees from one job to another from one department to another.
 Here the employees can be shifted from one shift to another without any
substantial change in the responsibilities and status of the employee. This is
the horizontal shift in the position of an employee.
 Transfers may be intercity or interstate.
 Job transfer acts as an important way of avoiding termination and may also
remove individual problems and grievances.

b. Promotion:

 Through this process, vacancies in higher positions are filled. This is also
known as the vertical shift of employees. In this, people are given higher and
greater responsibilities of the organization.
 This practice helps in improving motivation, loyalty and satisfaction among
the employees.
 This also initiates a chain of promotions at lower levels too.

11. Mention the merits and demerits of internal source of recruitment.

S.n Merits Demerits

o.
1. Boosts employee morale: No fresh blood in the
Employees get motivated to organization: The scope for
perform better so that they can induction of fresh talents gets
acquire higher positions in the reduced.
organization.
2. Reliable method: It simplifies the Employee lethargy: Employees
process of selection and may become lethargic if they
placement. This is one of the most become sure of time bound
reliable ways since the candidates promotions.
are already known to the
organization.
3. Tool of Training: Transfers act asNot suitable for new
a tool of training the employees to
organizations: Newly formed
prepare them for higher jobs. organizations cannot use this
source, as it requires existing
employees to fulfil the human
resource needs.
4. Creates balance: It also enables No competitive spirit: Spirit of
shifting employees from those Competition may be hampered.
departments where there is a
surplus to those departments that
have shortages.

5. Inexpensive: This is cheaper as Lower productivity: Frequent

compared to recruitment from transfers may lower the productivity
external sources. of the organization.
12. How does external source of recruitment work? How many types of
external sources of recruitment are there?
Ans. External Sources
 When the Internal Sources fail to cater the needs, the organization starts the
recruitment through external sources.
 There could be reasons like Incapability of the existing employees to fulfil the
eligibility criteria, new organization etc.
 External recruitment brings fresh hopes and talents in the organization.

The commonly used external sources are:

1. Direct Recruitment: In this type of recruitment process a notice is put on the

notice board mentioning the details of the job. Aspiring job-seekers assemble
outside the organization's premises on specified date and time and the
selection is done.

2. Casual Callers: Companies may maintain a database of applications received

over a period of time. List is prepared so that the candidates can be screened
out to fill the vacancies as they arise and also it reduces the cost of
recruitment.

3. Advertisement: Advertisements in newspapers and professional journals are

given when a wider choice of applicants is required. The source is
advantageous to the organization as a wide variety of applicants apply to
search for a job and also the management has a wide range of choice.

4. Employment Exchange: The employment exchange is a government

organisation where potential employees register themselves. The employment
exchange acts as a link between employers and potential employees.

5. Placement Agencies and Management Consultants: Placement agencies

act as a medium to bridge the gap between the job seekers and the job
providers. They charge a nominal amount of fee for their services and are very
useful for extensive screening.

6. Campus Recruitment: This is one of the most popular sources of recruitment.

The recruitment is done through management colleges, universities, and
vocational training centres.
7. Advertising on Television: Companies may use electronic media like
television to advertise the vacancy and the desirable profile for the advertised
job.

8. Web Publishing: Companies may use the internet to look for potential
employees and may advertise vacant positions in the organisation.

9. Labour Contractors: Companies may appoint a labour contractor as a

company employee and give him the responsibility to bring in casual workers.

13. State the merits and demerits of external source of recruitment.

S.n Merits/Advantage Demerits/Disadvantage

 o.
1. Qualified Personnel: Dissatisfaction among existing
Management can use external staff: Filling of positions using
sources to attract qualified and external sources may lead to
trained people to apply for the dissatisfaction among existing
positions in the organisation. employees who may be expecting to
rise through promotions.
2. Wider Choice: Large number of Lengthy process: It is a very time-
applications received from consuming process of appointing
potential employees provided people.
company is a wider choice while
selecting the right candidate.
3. Fresh Talent: People joining Costly process: Recruitment through
from outside world bring in fresh external sources requires a lot of
talent and new ideas infusing money to be paid for advertising,
new blood in the organisation processing applications, payment to
professional agencies, etc.
4. Competitive Spirit: New
employees bring in the
competitive spirit in the company
both existing and new
employees work hard to prove
their competence

14. How Selection is another aspect of staffing? Define this term. What
are the different types of process involved in it?

Ans. Selection
 This is the process of choosing the best out of all. A series of employment
tests and interviews are conducted in order to choose the person who would
be the best fit for the job.
 The process starts from the screening of applications and may continue till
the offer of employment acceptance and joining of the candidate.

Process of Selection includes the following-

i. Preliminary Screening: It helps in short listing of the suitable and probable

candidates and elimination of the unqualified or unfit job seekers based on the
application forms.

ii. Selection Tests: this may be an online or an offline test. In this test a wide
range of questions may be asked to determine the intelligence in personality
and manual skills of the person.
Important tests used for the selection of employees are:
 Intelligence test: It measures a candidate's ability to learn.
 Aptitude test: It measures the candidate’s ability to learn new skills.
 Personality test: It measures the overall personality of the candidate in
terms of emotions, reactions, maturity, value systems etc.
 Trade test: It measures the candidate's existing level of knowledge and
proficiency.
 Interest test: It identifies the candidate's areas of interest.
 iii. Employment Interview: This is a formal and in-depth conversation with the
candidate and it is conducted to test the suitability of the candidate.

iv. Reference and Background Check: This is done in order to verify the
credibility of the information provided by the employees. This is also done to
gather additional information about the candidate.

v. Selection Decision: At this stage all the members involved in the process of
selection meet and take final decision regarding selection of candidates.

vi. Medical Examination: This examination is undertaken to check the fitness of

the candidate before the job offer is made.

vii. Job offer: In this step of the selection process the applicants who have passed
all the previous hurdles, a job offer is made to them through the letter of
appointment or confirmation. The letter contains a date from which the
appointee must report on duty.

viii. Contract of Employment: After the job offer is made the duration of
employment agreed upon by both the parties is executed.

15. What do you mean by training and development? How it is useful in

the process of staffing?
Ans. Training and Development is one of the aspects of staffing.
 This is an attempt to improve the current and future performance of the
employee by increasing the ability to perform through various training
programs and introducing him or her with skills and knowledge.
 Training is the process of improving an employee's skills and competence
required to perform a specific job.
 The process of an employee's overall growth is referred to as development.

Importance of Training and Development

Training and Development is one of the most important parts of skill enhancement
and is very important for career growth of the employees and objective fulfilment
for the organization.

16. How training and development does benefits/helps the employee

and the organisation?

S.No Benefit to organisation Benefit to employee

.
1. Providing training to the employees It improves the skill set of the
in a systematic manner is better than employees and knowledge which
the hit and trial methods which will lead to a better and a bright
generally leads to wastage of time career of the individual.
and efforts of both the organization
and the employee.
2. The productivity of the employees in It makes the employees more
both the terms quantity and quality efficient to handle machines
leading to better profits. which make them less prone to
accidents.
 3. Training helps in catering to the fast- It increases the performance of
changing needs of the environment the individual and helps in
and also reduces absenteeism and burning more. Also, it increases
employee turnover. It also equipped the satisfaction and morale of the
the future managers to take over in employees.
case of emergencies.

17. How many types of training methods are there? Name the types of
training method.
Ans. There are two types of training methods. They are
A. On job methods –
 It refers to the methods that are applied to the workplace, while the employee is
actually working. It refers to the training where the subordinates learn by doing in
the workplace, under the supervision of superiors.

B. Off job methods –

 These methods are used away from the work place. The former means learning
while doing, while the latter means learning before doing. It refers to the training
where the subordinates learn by doing at a place away from the workplace.

Classification of ON Job Training Methods and OFF Job Training Methods-

S.n ON job methods of training OFF job methods of training
o.
1. Apprenticeship Programmes: Classroom Lectures/ Conference:
It is a method in which a trainee works It is a method of training where
under the guidance of a master worker information is conveyed through
for a prescribed period of time with an lectures for conferences.
aim to acquire specific skills.
2. Coaching: Films:
It is a method in which a superior act as It is a method of training where
a coach and guides or instructs the important information or skills are
employee trainee to learn skills and demonstrated using films, televisions,
processes within a defined period of videos or presentations.
time.
3. Internship Training: Case study:
It is a combined effort of educational It is a method of training where actual
institutions and business organisations work situations of the past are
to give work exposure to students and discussed to identify problems,
prepare them for real work culture. analyse its causes, and develop
alternative solutions to solve
problems.
4. Job Rotation: It is a method of training Computer Modelling:
where employees are trained with a full It is a method of training where the
range of skills by shifting them from one actual work environment is imitated
job to another or from one department by programming a computer.
to another.
5. Vestibule Training:
It is a method of training where a
duplicate work environment called
‘vestibule’ is created to train
employees with the technical and
 operating skills.
6. Programmed Instructions:
It is a method of training where
specific skills or knowledge are broken
into units and arranged in a logical
and sequential learning package.

18. (a) Differentiate between the following- Recruitment and selection

S.n Recruitment Selection

o.
1. A process of actively searching and A process of choosing suitable
hiring applicants for a job role is applicants from the shortlisted
known as recruitment. candidates is known as selection.

2. It is an activity to boost the candidate It is an activity to reduce the candidate

pool. pool until we find the ideal candidate.
3. It allows the candidates to apply for a This process allows the HR to proceed
vacant place. further with suitable applicants, and
reject the remaining.
4. In recruitment, we advertise the job Selection is the process in which we
role and encourage the candidates to finally appoint the candidate for the
apply. particular job role.
5. It is the first step towards the hiring It is the second step towards the hiring
process. process.
6. This process is economical. The process is comparatively expensive.
7. There is no contractual relation in the Selection involves a contractual relation
recruitment process. between the organisation and employee.

(b) Differentiation between Training and Development

S.n Training Development

o.
1. It is a process of increasing knowledge It is a process of increasing
and skills. knowledge and skills.
2. It is to enable the employee to do the It is to enable the overall growth of
job better. the employee.
3. It is a job-oriented process. It is a career-oriented process.
4. It has a narrow scope. It has a wider scope.
5. It enables the employee to perform the It ensures the overall growth of
job better. the employee.

19. Define the following terms-

I. Training:
• Training is any process by which the aptitudes, skills and abilities of employees
to perform specific jobs are increased.
• It is a process of learning new skills and application of knowledge.
• It attempts to improve their performance on the current job or prepare them for
any intended job.
II. Development:

• Development refers to the learning opportunities that are designed to help the
employee's grow.
• It refers to the learning opportunities designed to help employees grow.
• It covers not only those activities which improve job performance but also those
which bring about growth of the personality.
• It helps individuals in the progress towards maturity and actualisation of their
potential capacities so that they become not only good employees but better
men and women.

III. Education:

• It is the method of increasing the knowledge and understanding of the

employees.
• It helps in better understanding and interpretation of the knowledge.
• Education imparts qualities of mind and character and understanding of the
basic principles and develops the capacities of analysis, synthesis and
objectivity.
• Education is broader in scope than training.