staffing class 12 business studies case studies

CBSE Class 12 Case Studies In Business Studies – Staffing

STAFFING Staffing: Definition Staffing is concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force.

Importance of the Staffing

• It helps in discovering and obtaining competent personnel for various jobs within an organisation.
• By putting right person on the right job, it leads to a higher performance of the employees.
• It ensures the continuous survival and growth of the enterprise through the succession planning for managers.
• It helps to ensure optimum utilisation of the human resources.
• It improves job satisfaction and morale of the employees through objective assessment and fair rewarding for their contribution.

Steps Involved in the Staffing Process

• Estimating the manpower requirements on the basis of workload analysis and workforce analysis.
• Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
• Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment.
• Placement and Orientation is done by giving the charge of the post to the employee for which he has been selected. It also includes introducing him to the other employees and familiarising him with the rules and policies of the organisation.
• Training and development is done in order to ensure continuous learning of their employees so that they contribute effectively and efficiently towards the realisation of the organisational goals. Training is given to make a person job fit whereas development seeks to increase their potential for higher level jobs.
• Performance appraisal is undertaken to evaluate the worth of an employee to the organisation.
• Promotion and career planning are an integral part of people’s career and enhance their job satisfac tion.
• Compensation refers to all forms of pay or rewards going to employees.

HUMAN RESOURCES MANAGEMENT Human Resource Management: Definition Human Resource Management refers to the process of managing the employees within an organisation as human factor is recognised as the most important instrument of success in an organisation.

• Staffing is considered to be an inherent part of human resource management as it deals with the human element of management and is concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force.

Scope of Human Resource Management:

• Recruitment
• 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

RECRUITMENT Recruitment: Definition Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisa tion.

Sources of Recruitment

• Direct Recruitment
• Casual Callers
• Advertisement
• Employment Exchange
• Placement Agencies and Management
• Consultants
• Campus Recruitment
• Recommendations of Employees
• Labour Contractors
• Advertising on Television
• Web Publishing

SELECTION Selectiort: Definition Selection is the process of choosing the best candidate from a pool of applicants for the job.

Important Tests Used for Selection of Employees:

• Intelligence Tests include important psychological tests used to measure the level of intelligence quotient of an individual.
• Aptitude Test is a measure of an individual’s potential for learning new skills.
• Personality Tests give an insight into a person’s emotions, reactions, maturity and value system etc.
• Trade Test seek to measure the existing skills of the individual.
• Interest Tests are used to know the pattern of interests or involvement of a person.

Steps in the Process of Selection

• Preliminary Screening of the applications is done to eliminate those applicants who do not fulfill the minimum requirements of the job.
• Selection Tests help in an objective assessment of certain characteristics of individuals and is free from personal bias.
• Employment Interview is a face-to- face interaction between the interviewer(s) and prospective candidate.
• Reference and Background check is carried out for the purpose of verifying information and gaining additional information about an applicant.
• Selection Decision is made from among the candidates who pass the tests and interview.
• The selected candidates are asked to undergo a medical examination before the job offer is made.
• Job Offer is made to those applicants who have passed all the previous tests.
• Contract of Employment is issued to the selected candidate and includes information like job title, duties, responsibilities, date of joining, pay and allowances, etc. if the applicant accepts the job offer.

Differences between Recruitment and Selection

  TRAINING AND DEVELOPMENT Training: Definition Training is the process of increasing the knowledge and skill of the employees to perform specific jobs.

Development: Definition Development is the process of the overall growth of a person in all aspects.

Benefits of Training to the Organization

• Training imparts systematic learning to employees thereby helping to avoid wastage of efforts and money and is considered better than the hit and trial method.
• It increases the employees’ productivity both in terms of quantity and quality, leading to higher profits.
• Training increases the morale of the employees and reduces absenteeism and employee turnover.
• It helps in obtaining effective response to fast changing environment – technological and economic.
• Training equips the future manager who can take over in case of emergency.

Benefits of Training to the Employee

• Training leads to better career of the individual due to improved skills and knowledge during training.
• It helps an individual earn more due to increased productivity.
• It makes the employee more efficient in handling machines and less prone to accidents.
• It increases the satisfaction and morale of employees.

Methods of Training:

• Internship Training is a method for providing on the job training to the employees through a joint programme in which educational institutions and business firms cooperate. The learners carry on with their regular studies for the prescribed period. They also work in some factory or office to acquire practical knowledge and skills related to their specific field of expertise.
• Vestibule training is a popular method for providing off the job training through which the trainees learn their jobs on the equipment they will be using at tKeir actual work place. This is usually done when employees are required to handle sophisticated machinery and equipment.
• Induction training is given to the new employees in order to familiarise them with the key employees of the organisation and give information about the working of the organisation.
• Apprenticeship training is provided to the people seeking to enter skilled jobs like plumbers, electricians or iron workers. They are provided training under the guidance of a master worker.

Differences between Training and Development

LATEST CBSE QUESTIONS

Question 1. Why is ’employment interview’ conducted in the process of selection? (CBSE, Delhi 2017) Answer: An employment interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job in the process of selection. At the same time the interviewee may also seeks information from interviewer (if needed).

Question 2. Alpha Enterprises is a company manufacturing water geysers. The company has a functional structure with four main functions-Production, Marketing, Finance and Human Resource. As the demand for the product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department. (CBSE, Delhi 2017) Answer: Workload analysis is the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.

Question 3. Explain briefly ‘transfers’ and ‘promotions’ as internal sources of recruitment. (CBSE, Delhi 2017) Answer:

• Transfer: Transfers involves a horizontal movement of employees. In case of transfers an employee is shifted from one job to another, one department to another or from one shift to another. However, the salary remains unchanged and it may not result in any substantive change in the responsibilities and status of the employee. It is a good source of filling the vacancies with employees from over-staffed departments and is thus helpful in avoiding termination and in removing individual problems and grievances. At times it serves as a useful tool for training of employees for learning new jobs skills .
• Promotion: Promotion is a vertical shifting of employees to a higher position, thereby increase in the responsibilities, facilities, status and salary. It helps to boost the morale, loyalty and level of job satisfaction of the employees. Moreover, a promotion at the higher level may lead to a chain of promotions at lower levels in the organisation.

Question 4. Why is ‘Aptitude Test’ conducted in the process of selection? (CBSE, OD 2017) Answer: An aptitude test seeks to measure the potential of individuals for learning new skills.

Question 5. Bhagwati Enterprises is a company engaged in the marketing of air-conditioners of a famous brand. The company has a functional structure with four main functions—Purchase, Sales, Finance and Staffing. As the demand for the product grew, the company decided to recruit more employees. (CBSE, OD 2017) Idetify the concept which will help the Human Resource Manager to find out the number and type of personel availale so that he could decide and recruit the required number of persons for each department. Answer: Workforce analysis will help the human resource manager to find out the number and type of personnel available in the organization.

Question 6. Explain briefly ‘Casual Callers’ and ‘Labour Contractors’ as external sources of recruitment. (CBSE, OD 2017) Answer:

• Casual callers: Casual callers is considered to be relatively cheaper source of recruitment in comparision to the other sources. This is because the organizations has to primarily maintain a database in their offices of the unsolicited applicants who sent their resume in anticipation of job prospects. As an when a vacancy arises in the organization such job-seekers may be screened.
• Labour contractors: Labour contractors proves to be a very useful resource for appointing the required number of unskilled workers at short notice. However, if the labour contractors who themselves are the employees of the organization decide to leave it for any reason then all the workers recommended by him are also likely to leave the work along with him.

Question 7. Human Resource Management includes many specialized activities and duties which the human resource personnel must perform. In the light of this statement, explain any four such duties performed by Human Resource Manager. (CBSE, Sample Paper, 2017) Answer: Human Resource Management includes many specialised activities and duties which the human resource personnel must perform. These duties are stated below:

• Recruitment i.e., search for qualified people and stimulating them to apply for the job within the organisation.
• Prepare job descriptions by analysing jobs, collecting information about jobs etc.
• Developing suitable compensation and incentive plans for the employees.
• Designing appropriate training and development of employees to foster efficient performance and career growth.

Question 8. Resolutions Pvt. Ltd. is a publishing company. Its book on Business Studies for class XII is in great demand. As a result, the employees in the marketing department are always racing against time. The employees have to work overtime and on holidays to cater to the demand. Managers in the marketing department are under stress as they have to handle more than two territories. The work stress has led to dissatisfaction among the employees and managers.

• Name and explain the step of staffing process which has not been performed properly.
• State the next two stages immediately following the step identified in part ‘a’. (CBSE, Sample Paper, 2017)
• The step of staffing process which has not been performed properly is: Estimation of manpower requirements: It is the first step in the staffing process and is carried out with the help of workload analysis (assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives) and work force analysis (assessment of the number and type available).
• Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
• Selection: Selection is the process of choosing the best candidate from a pool of applicants.

Question 9. Joseph Bros is a firm manufacturing jute lampshades. It uses leftover jute pieces from various jute factories to manufacture economical lampshades which are supplied to various hotels in nearby towns. It employs men and women from nearby villages as workers for creating good lampshade designs. Joseph Bros, is not able to meet its targets. Namish, the supervisor of the company, was told to analyse the reasons for the poor performance. Namish found the following problems and suggested certain solutions in the working of the business. The number of workers employed was less than what was required for the work. As a result, the existing workers were overburdened. The firm decided to search for new workers and it asked the present employees to introduce candidates or recommend their friends and relatives to the firm. This enabled the firm to ‘put people to jobs’ and assured the attainment of objectives according to plans.

• Identify the functions of management being performed by the firm in the above situation.
• Name the concept and its source used by the firm to attract more workers for the firm.
• State any two values being followed by Jacob Bros. (CBSE, Sample Paper 2016)
• The ‘Staffing’ function of management is being performed by the firm.
• Recruitment is the concept used by the firm to attract more workers to the firm. The firm is planning to use the external source of recruitment i.e ‘Recommendation of present employees’ to attract more workers to the firm.
• Generating employment
• Optimum utilisation of resources.

Question 10. Aakansha, 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 a satisfied workforce for their handicraft unit. (CBSE, Sample Paper 2016) Answer: The next three steps that they will have to undertake for obtaining a satisfied workforce for their handicraft unit are as follows:

• Placement and Orientation: Placement refers to the process of giving the charge of the job for which the employees have been appointed. Orientation may involve a series of activities related to introducing the new employee to other employees and familiarising him with the rules and policies of the organisation. Moreover, he is taken around the workplace and made aware of the fire safety policy, canteen, conference room etc.

Question 11. Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm that manufactures cosmetics, which is facing a problem of high employee turnover. The CEO of the company has invited suggestion from her for retaining the talented employees and reducing the employee turnover. Mrs. Rajlaxmi recommends that the good employees be rewarded in a way that it creates a feeling of ownership among the employees and at the same time, makes them contribute towards the growth of the organisation.

• Identify the incentive and explain its type which has been suggested by Mrs. Rajlaxmi to the CEO of the company.
• Also explain any two other incentives of the same type. (CBSE, Sample Paper 2016)
• Co-partnership / stock option, which is a type of financial incentive, has been suggested by Mrs. Rajlaxmi to the CEO of the company.
• Retirement Benefits: An organisation may provide several retirement benefits to its employees after their retirement such as provident fund, pension and gratuity which provide financial security. These benefits serve as an incentive when they are in service in the organisation.
• Perquisites: In many companies perquisites and fringe benefits are offered over and above the salary such as car allowance, housing, medical aid, and education to the children etc.

Question 12. 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 agreecs 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.

• Name the internal/external sources of recruitment used by Senor Enterprises Ltd. to fill up the above stated vacancies.
• Also state any one merit of each of the above identified source of recruitment. (CBSE, Delhi 2016)
• The vacancy for the post of Human Resource Manager has been filled up through Promotion.
• The vacancy for the post of Marketing Head has been filled up through the Placement Agencies and Management Consultants.
• The vacancy for the post of Assistant Manager has been filled up through Casual Callers.
• Promotion: It boosts the morale of not only the employee who is promoted but also of other employees as they get an assurance that their competence will also be recognised in due course.
• Placement Agencies and Management Consultants provide specialised services to the organisations to recruit technical, professional and managerial personnel at middle and top level.
• Casual Callers as a source of recruitment reduces the cost of recruiting workforce in comparison to other sources.

Question 13. 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 discuss 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 the H.R. Manager. Vaibhav said that he was neither related to any employee of the organisation nor was there any advertisement in the newspaper, even then, he was directly called from IIM Ahmedabad from where he was about to complete his MBA.

• The above discussion is indicating an important function of management. Name the function of management.
• The management function identified in part (1) follows a particular process. Explain the step of this process which is being discussed in the above paragraph. (CBSE, Sample Paper 2015)
• The function of management being referred to in the above lines is ‘Staffing’.
• Recruitment is the step in the staffing process which is being discussed in the above paragraph. Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The various sources of recruitment mentioned in the above paragraph are: Aman: Recommendation of present employee. Benu: Advertisement in newspaper Vaibhav: Campus recruitment.

Question 14. Blue Heavens Ltd. purchased a new machinery from Germany for manufacturing some auto components. It was a cost-effective and quality production machine but during the production process, manager observed that the quality of the production was not as per standards. On investigation, it was found that there was lack of knowledge of using these hi-tech machines. So, frequent visits by engineers were required from Germany but this resulted in high overhead charges. Suggest what can be done to develop the skills and abilities of employees for producing quality products by using these hi-tech machines. Also state how the employees or the organisation will be benefited by your suggestion. (CBSE, Sample Paper 2015) Answer: Training should be provided to the employees to develop their skills and abilities for producing quality products by using these hi-tech machines. The benefits of imparting training to the employee are as follows:

• Better career: Training leads to better career opportunities for the employees as it helps to improve their skills and knowledge of doing the job.
• Increased earnings: Training leads to increased performance by the employees thereby helping them to earn more.
• Increased efficiency: Training makes the employees more efficient in handling machines and less prone to accidents.
• Improved motivation: Training increases the satisfaction and morale of employees thereby motivating them to work with greater enthusiasm.

Question 15. The workers of Gargya Ltd. are unable to work on new computerised machines imported by the company to fulfill the increased demand. Therefore, the workers are seeking extra guidance from the supervisor and the supervisor is overburdened with frequent calls of the 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. (CBSE, OD 2015) OR 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 supervisors. 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. (CBSE, Delhi 2015) Answer:

• The supervisor may provide Vestibule training to the workers in order to enable them handle their work independently. Vestibule training is a popular method for providing off the job training during which the trainees learn their jobs on the equipment they will be using at their actual work place. This is usually done when employees are required to handle sophisticated machinery and equipment.
• Increased earnings: Training leads to increased performance by the employees thereby helps them to earn more.

Question 16. Mohit Gupta is working with Yellow Security Services Ltd. He is also recruiting security guards for the company. The company provides security services in Delhi and Noida at short notice to various companies. The guards are recruited on a temporary basis. The guards provided by this company are known for their honesty and punctuality. Mohit Gupta is well-known in his village for providing employment to unskilled people.

• Name the source of recruitment used by Yellow Security Services Ltd.
• State any one disadvantage of this source of recruitment.
• Identify the need of security guards which is being fulfilled by the company as per Maslow’s need hierarchy.
• Identify any two values communicated to society in the above stated case. (CBSE, OD 2015)
• External source of recruitment i.e. Labour contractor has been used by Yellow Security Services Ltd.
• One disadvantage of the external source of recruitment is that the new employees may take longer time to settle in the organisation.
• The basic physiological needs of the security guards are being fulfilled by the company.
• Reliability /Dependability
• Generating employment opportunities

Question 17. Prashant, the Director of a company, is planning to manufacture rugs for utilising waste materials from one of his garment factories. He decided that this manufacturing unit will be set-up in a rural area so that people of that area will have more job opportunities. For this, he wanted four different heads for Sales, Accounts, Purchase and Production Departments. He decided that one of them will be a differently-abled person, another from a minority community and one from a disadvantaged section of society. He gave an advertisement in the newspaper for the above vacancies.

• Identify and state the next three steps Prashant has to follow in the staffing process after advertising for the above vacancies.
• Identify any two values that Prashant wants to communicate by setting up this manufacturing unit. (CBSE, OD 2013)
• Placement and Orientation: Placement refers to the process of giving the charge of the job for which they have been appointed. Orientation may involve a series of activities related to introducing the new employee to other employees and familiarising him with the rules and policies of the organisation. Moreover, he is taken around the workplace and made aware of the fire safety policy, canteen, conference room etc.
• Training and Development: Organisations either have in-house training centres or make alliances with training and educational institutes. This is done to ensure continuous learning of their employees in order to strengthen their competencies for both present and future jobs. This helps to motivate them and enables them to perform better and contribute more towards the realisation of the organizational effectiveness and efficiency.
• Optimum utilisation of resources
• Rural development.

Question 18. Nishant, the director of a garment company, is planning to manufacture bags for the utilisation of waste material from one of his garments unit. He has decided that his manufacturing unit will set-up in a rural area of Odisha where people have very few job opportunities and labour is available at very low rates. He also thought of giving equal opportunities to men and women. For this, he wanted four different heads for sales, accounts, purchase and production. He gave an advertisement and short listed ten candidates per post after conducting different selection tests.

• Identify and state the next three steps for choosing the best candidate out of the short¬listed candidates.
• Also identify two values which Nishant wants to communicate to society by setting up this manufacturing unit. (CBSE, Delhi 2013; OD 2013)
• Employment Interview: It is a face-to-face interaction between the interviewers and prospective candidate. It involves a formal, in-depth conversation that is conducted to evaluate the applicant’s suitability for the job.
• Reference and Background Checks: At the time of filling up of the job application form,the prospective candidates are required to provide names, addresses, and telephone numbers of references for the purpose of verifying information and gaining additional information about him/her.
• Selection Decision: The final decision about the selection is made from among the candidates who pass the tests and interview.
• Rural development
• Gender equality

Question 19. Harish, the director of a company, is planning to manufacture stuffed toys for utilising waste materials from one of his garment factories. He decided that this manufacturing unit will be set-up in a rural area so that people of that area will have more job opportunities. For this, he selected Rehman, Anita Banerjee, Harpreet Kaur and Umesh (a differently abled but very intelligent and creative person in designing) as the heads of Sales, Accounts, Purchase and Production Departments respectively.

• Identify and state the next three steps that Harish has to follow in the staffing process after selecting the heads of different departments.
• Identify any two values that Harish wants to communicate by setting-up this manufacturing unit. (CBSE, Delhi 2013)
• Training and Development: Organisations either have in-house training centres or make alliances with training and educational institutes. This is done to ensure continuing learning of their employees and in order to strengthen their competencies for both present and future jobs. This helps to motivate them and enables them to perform better and contribute more towards the realisation of the organizational effectiveness and efficiency.
• Performance Appraisal: It is a process of evaluating the worth of an employee to the organisation. It may be done in both formal and informal way. The process performance appraisal includes defining the job, appraising performance and providing feedback.
• Sustainable development

Question 20. Sahil, the director of a garments company, is planning to manufacture bags for the utilisation of waste materials from one of his garments units. He decided that his manufacturing unit will be set up in the rural area of Odisha where people have very less job opportunities and labour is available at a very low rate. He also thought of giving equal opportunities to men and women. For this, he selected S. Chatterjee, Inderjeet Kaur, Aslam and Sarabjeet as heads of the Sales, Accounts, Purchase and Production Departments.

• Identify and state the next two steps that Sahil has to follow in the staffing process after selecting the above heads.
• Also identify two values which Sahil wants to communicate to society by setting up this manufacturing unit. (CBSE, OD 2013)
• Placement and Orientation: Placement refers to the process of giving the charge of the job for which they have been appointed. Orientation may involve a series of activities related to introducing the new employee To other employees and familiarising him with the rules and policies of the organisation. Moreover, he is taken around the workplace and made aware of the fire safety policy, canteen, conference room etc.
• Training and Development: Organisations either have in-house training centres or make alliances with training and educational institutes. This is done to ensure con¬tinuous learning of their employees and in order to strengthen their competencies for both present and future jobs. This helps to motivate them and enables them to perform better and contribute more towards the realisation of the organisational effectiveness and efficiency.

ADDITIONAL QUESTIONS

Question 1. Owing to the increased workload after demonetisation, the income tax employees of Karnataka and Goa region had urged the centre to increase manpower of the I-T department by filling up 35% vacancies which were lying vaccant. As there were confirmed reports about misuse of bank accounts, foreign exchange mechanism, gold purchases and adoption of various other dubious means for investing the unaccounted cash. In context of the above case:

• Identify and explain the function of management being discussed in the above lines.
• Identify and explain the particular step related to the function of management as identified in part (1) of the question which has already been performed. Also, state the next three steps to be performed after this step.
• Staffing is the function of management which is being referred to in the above lines. The managerial function of staffing is concerned with obtaining and maintaining a satisfactory and satisfied workforce.
• Selection: Selection is the process of choosing the best candidate from the pool of applicants.
• Placement and Orientation: Placement refers to the process of giving the charge of the job for which they have been appointed. Orientation may involve a series of activities related to introducing the new employee to other employees and familiarising him with the rules and policies of the organisation. Moreover, he is taken around the workplace and made aware of the fire safety policy , canteen, conference room etc.

Question 2. Sia plans to start a play school at a prime location in the city. She offers a partnership proposal to her family friend Jyotika who has done a diploma in human resource management. As Sia understands that human resource management is critical to starting and running the school. The school needs an experienced and dynamic principal. It also needs talented and dedicated teachers and a competent administrative staff. Therefore, after determining the organisational structure of the school she initiates the staffing process with the help of Jyotika to fill in the various job positions as staffing is considered to be an inherent part of human resource management. In the context of the above case:

• Outline the concept of human resource management.
• Why is staffing is considered to be an inherent part of human resource management?
• Human Resource Management refers to the process of managing the employees within an organisation as human factor is recognised as the most important instrument of success in an organisation. Therefore, it is a specialised activity which may require the expertise of many people depending upon the nature and size of the business.

Question 3. Nakul belongs to a small village in Varanasi. Being the only literate person in his immediate family, he decides to settle in a city. So he opens a sweets shop in Chandni Chowk, Delhi as he possesses extraordinary culinary skills. Very soon he starts getting requests from his cousins in the village to engage them in some kind of job in his business. Considering it to be his moral obligation, he engages five of his cousins in his business without paying any specific attention to their individual capabilities. This leads to wastage of materials, time, effort and energy, resulting in lower productivity and poor quality of products. As a result, the profitability of his business starts falling. Soon, he realised that for the success of the business it is essential that right kind of people must be available in right number at the right time. In the context of the above case:

• Identify and explain the function of management that has been overlooked by Nakul.
• Describe briefly the importance of the function of management as identified in part (1).
• Staffing is the function of management that has been overlooked by Nakul. Staffing is the process of manning the roles designed into the organisational structure. It is concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force. –
• It helps to ensure optimum utilisation of the human resources. By avoiding over manning, it prevents under-utilisation of personnel and high labour costs. At the same time it avoids disruption of work by indicating in advance the shortages of personnel.

Question 4. Anuroop runs a law firm in Hyderabad. His firm offers valuable financial and legal consultancy services to the clients. Whenever the firm hires any new employees, on the first day of their joining, they are welcomed to the organisation and are given details about hours of work, holiday requests, sickness procedure, dress code, lunch arrangements, introduced to the daily operations and key people in the workplace, etc. They are also familiarised with the organisation’s policies and procedures, including complaints and dispute resolution, sexual harassment, emergency exits and evacuation procedure. In the context of the above case:

• Name the type of training which is being referred to in the above lines.
• Identify and explain the human needs of the new employees that are being fulfilled by Anuroop through this training.
• Induction training is being referred to in the above lines.
• Basic Physiological Needs: These needs are most basic in the hierarchy and are linked to primary needs like hunger, thirst, shelter etc. “they are given details about hours of work, holiday requests, sickness procedure, dress code, lunch arrangements etc.”
• Safety/Security Needs: These needs offer security and protection from physical and emotional harm. “They are also familiar with the organisation’s policies and procedures, including complaints and dispute resolution, sexual harassment, emergency exits and evacuation procedure.”
• Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. “Whenever the firm hires any new employees, on the first day of their joining, they are welcomed to the organisation.”

Question 5. Deeksha is the general manager of a firm offering Telemarketing services. Telemarketing is a method of direct marketing in which a representative of the company solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face, or Web conferencing appointment scheduled during the call. Deeksha ensures that all the call centre representatives are well versed with the local languages so that they can interact effectively with the prospective buyers. Moreover, the employees are provided training to improve upon their troubleshooting skills so that they do not spend too much time with every customer. By acquiring these skills the callers are able to add value to their message and also shorten the call durations, leading to increased customer satisfaction and profitability of the business. As a part of the firm’s policy, Deeksha encourages women, persons from backward communities and persons with special abilities to assume responsible positions in the organisation. In context of the above case:

• Identify the type of communication barriers that Deeksha is able to overcome by ensuring that all the call centre representatives are well versed with the local languages.
• What are benefits of training employees to an organisation?
• List any two values that the firm wants to communicate to the society.
• Deeksha is able to overcome the semantic barriers by ensuring that all the call centre representatives are well versed with the local languages.
• Training imparts systematic learning to employees thereby helping to avoid wastage of efforts and money. It is considered better than the hit and trial methods.
• Women empowerment

Question 6. Srija runs an NGO under the name ‘Sarthak’ in Delhi. The organisation is engaged in offering waste paper recycling services to all kinds of institutions in the Delhi NCR region. It also manufactures custom made paper stationery out of recycled paper on order for the interested institutions at a very competitive price. The website of ‘Sarthak’ provides a link to a Careers site wherein the people desirous of joining the NGO can use simple Job Search to find the right opportunity for themselves. The NGO also keeps a database of unsolicited applicants in its office so that job seekers may be notified of future opportunities when they arise. In context of the above case:

• Identify the two sources of external recruitment being used by the NGO ‘Sarthak’ by quoting lines from the paragraph.
• List any two values that Srija wants to communicate to the society.
• Web Publishing:”The website of ‘Sarthak’ provides a link to a Careers site wherein the people desirous of joining the NGO can use simple Job Search to find the right opportunity for themselves”
• Casual Callers: “The NGO also keeps a database of unsolicited applicants in its office so that job seekers may be notified of future opportunities when they arise.”
• Environment sustainability .
• Responsibility.

Question 7. Race Tech Ltd. is one of the top IT companies in India. The company does mass recruitment each year from different colleges offering fresher level job to the final year students. This helps in recruiting the brightest and the best available talent in the educational institutions. In context of the above case:

• Identify the source of external recruitment adopted by the company.
• Explain briefly any three advantages of using the external sources of recruitment.
• Campus Recruitment is the source of external recruitment adopted by the company.
• Qualified Personnel: Through the external sources of recruitment,the management is able to attract qualified and trained people to apply for the vacant job positions in the ^manisation.
• Wider Choice: As the vacancies are advertised widely a large number of applicants from outside the organisation are likely to apply. This gives the organisation a wider choice while selecting the people for employment.
• Fresh Talent: The organisations cannot fulfil all the vacancies from within the organisation. Therefore by using the sources of external recruitment they get a wider choice and it brings new blood into the organisation.

Question 8. Prateek has started an advertising agency in Gurgaon. One of the page on his company’s website contains the following information, “Welcome to all the visitors of this page who are looking for an opportunity to make a career in the field of advertising. The openings are available in the company at various levels, so don’t miss the chance.” This page includes a link to provide further details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on. Through a continuous assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives and in relation to the number and type available, he gets the information on this page updated. In context of the above case:

• Identify and explain the steps in the staffing process being carried out by Prateek by quoting lines from the paragraph.
• Name the concept that relates to the details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.
• Estimating the Manpower Requirements: It is the first step in the staffing process and is carried out with the help of workload analysis (assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives) and work force analysis (assessment of the number and type available). “Through a continuous assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives and in relation to the number and type available.”
• Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. “One of the pages on his company’s website contains the following information, “Welcome to all the visitors of this page who are looking for an opportunity to make a career in the field of advertising. The openings are available in the company at various levels, so don’t miss the chance.”This page includes a link to provide further details about the vacancies available.” “..he gets the information on this page updated.”
• Job description is the concept that relates to the details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.

Question 9. Sunidhi runs a KPO (Knowledge Process Outsourcing) in Gurgaon. The services provided by her firm include all kinds of research and information gathering in fields such as financial market, medicine, animation and design, etc. Sunidhi believes that the success of the company can be achieved mainly through the people it chooses to employ. Therefore, she aims to attract the best people and provides them innumerable opportunities to enhance their knowledge and skill relevant to their position. In context of the above case, identify and explain the aspects of staffing being taken into consideration by Sunidhi by quoting lines from the paragraph. Answer: The three aspects of staffing being taken into consideration by Sunidhi are as follows:

• Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. “she aims to attract the best people”
• Selection: Selection is the process of choosing the best candidate from a pool of applicants. “Sunidhi believes that the success of the company can be achieved mainly through the people it chooses to employ.”
• Training: Training helps to upgrade the knowledge and skills of the employees so that their ability to perform in the present job can be enhanced. “..provides them innumerable opportunities to enhance their knowledge and skill relevant to their position.”

Question 10. Anushka is doing a course in fashion designing from an institute of repute. As a part of the course, she has been asked to take on-the-job training in an export house for a fortnight in order to gain an insight about various practical aspects related to designing. Anushka, through the references from her senior, joins an export house owned by an upcoming designer, Nandita. In context of the above case:

• Name and explain the type of training which Anushka has been asked to undertake.
• Explain briefly any one method for providing off-the-job training.
• Internship Training is the type of training which Anushka has been asked to undertake. It is a joint programme of training in which educational institutions and business firms co-operate. The learners carry on with their regular studies for the prescribed period. They also work in some factory or office to acquire practical knowledge and skills related to their specific field of expertise.
• Vestibule training is a popular method for providing off-the-job training. The term ‘vestibule’ means duplicate or replica. Under this method, the trainees learn their jobs on the equipment they will be using at their actual work place. The training is conducted away from the actual work floor at a place where actual work environments are created in a class room and employees use the same materials, files and equipment. This is usually done when employees are required to handle sophisticated machinery and equipment. .

Question 11. The employees of ‘Food Darbar,’ a restaurant, are trained through a structured programme that provides training in each area within the restaurant. The trainees learn the skills necessary for running each of the 12 workstations in the restaurant, from taking orders to the cooking area. This enables the employees to gain a broader understanding of all parts of the business and how the restaurant functions as a whole. The trainee gets fully involved in the department’s operations and also gets a chance to test her own aptitude and ability. When employees are trained by this method, the organisation finds it easier at the time of promotions, replacements or transfers. In context of the above case:

• Name the type of training which ‘Food Darbar’ provides to its employees.
• Distinguish between training and development on the basis of meaning, purpose and scope.
• Job rotation is the type of training which ‘Food Darbar’ provided to its employees. It is a method of on-the-job training

Question 12. Sunder Lai runs a security service providers agency. Considering that psychological testing is a critical step for judging the potential of the prospective candidates for a career in law enforcement, he uses various types of psychological tests as part of the selection processes. This is done to ensure that potential new officers are emotionally and psychologically suited to carry out the requirements of the job. In context of the above case:

• Briefly outline any one more type of test that Sunder Lai may use to assess the potential of the prospective candidates.
• Briefly outline the steps involved in the selection process after conducting the assessment tests.
• Interest Tests: Interest tests are used to know the pattern of interests or involvement of a person.
• Reference and Background Checks: At the time of filling up of the job application form, the prospective candidates are required to provide names, addresses, and telephone numbers of references for the purpose of verifying information and gaining additional information about him/her.
• Medical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test.
• Job Offer: The next step in the selection process is job offer, given to those applicants who have passed all the previous tests.
• Contract of Employment: After candidate accepts the job offer, a contract of employment is issued. Basic information that should be included in a written contract of employment will vary according to the level of the job, but it will include information like job title, duties, responsibilities, date of joining, pay and allowances, etc.

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Case Studies - Staffing - Business Studies (BST) Class 12 - Commerce

Q. 1. “Our assets walk out of the door each evening, we have to make sure that they come back the next morning.” This statement relates to which function of management.  Explain the importance of this function.

Ans.   Staffing.   [For importance of function refer on page no. 156.]

Q. 2. In a company all recruiting, screening and training process for data entry, etc. are done by one officer only.  Their competitor was attracting most qualified employees.  As a result this company had to choose from candidates who have soft skills and less qualifications.  On the basis of above case answer the following questions:

(i) What problem do you see company is facing?

(ii) How can this problem m be solved?

• This company has failed to recognize the human resource approach.  This approach considers human resources as most important factor.  They are dependent on personnel office for all the activities whereas they have failed to recognize the importance of human resource management.
• This problem can be solved by setting up a human resource management department which performs following function:

[Explain activities of human resource management]

Q. 3. Zenith Ltd. is a highly reputed company and many people wanted to join this company.  The employees of this organization are very happy and they discussed how they came in contact with this organization.

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. John.

Vaibhav said that he was neither related to any of the employee of the organization nor there was any advertisement in the newspaper even then he was directly called from HM Ahmedabad from where he was about to complete his MBA.

• The above discussion is indicating an important function of management.  Name the function of management.
• 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.

Ans.     (a) Staffing.

(b) Recruitment – It is defined as the process of researching for prospective employees and stimulating them to apply for jobs in the organization.

Q. 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 was found that there was lack of knowledge amongst the employees of suing these hi-tech machines.  So, frequent visit of engineers was required form Germany.  This resulted in high overhead charges.

Suggest what can be done to develop the skills and abilities of employees for producing high quality products by using these hi-tech machines.  Also state how the employees or the organization will benefit from your suggestion.

Ans.     Training of employees

            Benefits to the organization or employees:

• Avoid wastage of effort & money
• Enhances employee productivity
• Equips future managers
• Increases employee morals & reduces absenteeism
• Obtaining effective response to fact changing environment
• Improved skills and knowledge of the individual
• Increased performance by the individual

Q. 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 hand 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?                                                                                 (6 mark)

• Ms. Neeta is must be performing these functions as a HR manager:
• Analysing jobs and collecting information about jobs to prepare job descriptions.
• Developing compensation and incentive plans
• Since the company has an expansion plan requiring 200 more persons for various types of additional requirements, Ms. Neeta will have to recruit and select those persons from outside the organization.  For this she will have to invite candidates to apply for the jobs through external sources of recruitment such s advertisements, placement agencies, recommendations of employees, etc.

Then, Ms. Neeta will have to arrange for various types of training (e.g. apprenticeship training, vestibule training, etc.) of the employees to make them efficient.

She will have to handle workers’ grievances and complaints and maintain labour relations.

She will have to provide for social security and welfare of employees.

Q. 6. Name the methods of recruitment in the following cases:

• 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.
• Casual vacancies of unskilled or semi-skilled jobs when there is a rush of order or when some permanent workers are absent.
• Recruitment by which most of the senior positions of the industry as well as commerce are filled.                                                                         (3 marks)
• Casual callers
• Direct recruitment
• Advertisement

Q. 7. Anuroop runs a law firm in Hyderabad.  His firm offers valuable financial and legal consultancy services to the clients.  Whenever the firm hires any new employees, on the first day of their joining, they are welcomed to the organization and are given details about hours of work, holiday requests, sickness procedure, dress code, lunch arrangements, introduced to the daily operations and key people in the workplace, etc.  They are also familiarized with the organistion’s policies and procedures, including complaints and dispute resolution, sexual harassment, emergency exits and evacuation procedure.

In the context of the above case:

• Name the type of training which is being referred to in the above lines.
• Identify and explain the human needs of the new employees that the being fulfilled by Anuroop through this training.
• Introduction training is being referred to in the above lines.
• The various types of human needs of the new employees that are being fulfilled by Anuroop through induction training are stated below:
• Basic Physiological Needs:
• Safety / Security Needs:
• Affiliation / Belonging Needs:

Q. 8. Srija runs an NGO under the name ‘Sarthak’ in Delhi.  The organization is engaged in offering waste paper recycling services to all kinds of institutions in the Delhi NCR region.  It also manufactures custom made paper stationery out of recycled paper on order for the interested institutions at a very competitive price.  The website of ‘Sarthak’ provides a link to a Careers site where in the people desirous of joining the NGO can use simple Job Search to find the right opportunity for themselves.  The NGO also keeps a database of unsolicited applicants in its office so that job seekers may be notified of future opportunities when they arise.

In context of the above case:

• Identify the two sources of external recruitment being used by the NGO ‘Sarthak’ by quoting lines from the paragraph.
• List any two values that Srija wants to communicate to the Society.
• The two sources of external recruitment being used by the NGO ‘Sarthak’ are as follows:
• Web Publishing:
• Casual Callers:
• The two values that Srija wants to communicate to the society are:
• Environment sustainability
• Responsibility.

Q. 9. Prateek has started an advertising agency in Gurgoan.  One of the page on his company’s website contains the following information, “Welcome to all the visitors of this page who are looking for an opportunity to make a career in the field of advertising.  The openings are available in the company at various levels, so don’t miss the chance.”  This page includes a link to provide further details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.  Through a continuous assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organizational objectives and in relation to the number and type available, he gets the information on this page updated.

• Identify and explainthe steps in the staffing process being carried out byy Prateek by quoting lines from the paragraph.
• Name the concept that relates to the details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.
• The two steps in the staffing process being carried out by Prateek are as follows:
• Estimating the Manpower Requirements:
• Recruitment:
• Job descriptions the concept tht relates to the details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.

Q. 10. 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 organization 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 a satisfied workforce for their handicraft unit.                                                                         (3 mark)

Ans.  The next three steps in the process of staffing are stated below:

• Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
• Selection is the process of choosing from among the pool of the prospective job candidatye4s developed at the stage of recruitment.
• Placement and orientation refers to the employee occupying the position or post for which the person has been selected and introducing the selected employee to other employees and familiarizing him with the rules and policies of the organisation.

Q. 11. A company x Ltd. is setting up a new plant in India for manufacturing auto components.  India has 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 trained and motivated workforce. You have been retained by the company to advise it in this matter.

(i) which sources of recruitment the company should rely upon?

(ii) Which methods of training should company initiate?                    (4 marks)

• The company should rely upon the following external sources of recruitment because it is setting up a new plant and requiring large number of employees with latest technology.  So, it needs to recruit technical, professional and managerial personnel.
• Management consultants
• Campus recruitment.
• The company should initiate following methods of training
• Apprenticeship training
• Vestibule training
• Internship.

Q. 12. The quality of production is not as per standard. On investigation it was observed that most of the workers were not fully aware of proper operation of the machinery.  What could be the way to improve the accuracy?                                                       (3 marks)

Ans.  Workers are needed to be given appropriate training to make them learn use of machinery and most suitable method in this case is apprenticeship training . It is on-the-job method of training.  The workers seeking to enter skilled traits, e.g., to become plumbers, electricians or iron workers are required to undergo apprenticeship training for a prescribed time period (which may vary from 2 to 5 years).  Apprenticeship training puts the apprentices (trainees) under the guidance of a master worker or an experienced guide or trainer.

Q. 13. The employers of ‘Food Darbar,’ a restaurant, are trained through a structured programme that provides training in each area within the restaurant.  The trainees learn the skills necessary for running each of the 12 workstations in the restaurant, from taking orders to the cooking area.  This enables the employees to gain a broader understanding of all parts of the business and how the restaurant functions as a whole.  The trainee gets fully involved in the department’s operations and also gets a chance to test her won aptitude and ability.  When employees are trained by this method, the organization finds it easier at the time of promotions, replacements or transfers.

• Name the type of training which ‘Food Darbar’ provides to its employees.
• Distinguish between training and development on the basis of meaning, purpose and scope.
• Job rotation is the type of training which ‘Food Darbar’ provided to its employees.  It is a method of on-the-job training.
• The difference between Training and Development is given below:

Q. 14. Deeksha is the general manager of a firm offering Telemarketing services.  Telemarketing is a method of direct marketing in which a representative of the company solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face, or Web conferencing appointment scheduled during the call.  Deeksha ensures that all the call centre representatives are well versed with the local languages to that they can interact effectively with the prospective buyers.  Moreover, the employees are provided training to improve upon their troubleshooting skill so that they do not spend too much time with every customer.  By acquiring these skills the callers are able to add value to their message and also shorten the call durations, leading to increased customer satisfaction and profitability of the business.

As a part of the firm’s policy, Deeksha encourages women, persons from backward communities and persons with special abilities to assume responsible positions in the organization.

• Identify the type of communication barriers that Deeksha is able to overcome by ensuring that all the call centre representatives are well versed with the local languages.
• What are benefits of training employees to an organization?
• List any two values that the firm wants to communicate to the society.
• Deeksha is able to overcome the semantic barriers by ensuring that all the call centre representatives are well versed with the local languages.
• The benefits of training to an organization are as follows:
• The two values that the firm wants to communicate to the society are:
• Women empowerment

Q. 15. Bhuvan Ltd. is highly reputed company.  The employees of this organization discussed how they came in contact with this organization.  Reena said she was introduced by the Purchase manager (Mr. John. Neetu said she applied through newspaper and was appointed as Finance manager).

Indu said she was directly called by the company from her IIM institute after completing MBA.

• Identify the different sources of recruitment.
• Name the function of management discussed in above para.

Ans.  (i)           (a) Reena’s source of recruitment recommendation from existing staff.

                       (b) Neetu’s source: Media advertising

                       (c) Indu’s source: Campus recruitment

         (ii)           Function discussed in above para is staffing.

Q. 16. Mr. Anil Garg is working as Managing Director of “CLS Packaging Limited”.  He is not in favour of selling waste material in the marked.  Instead he is planning to make himself new products of this material.  For this purpose, a new unit will have to be set up. Accordingly, he decided to establish this unit in an area where large number of persons are unemployed and so labour is available at cheap rate.

In order to attract workers to this new unit, a special Remuneration Scheme was introduced.  As per this scheme, workers will get their remuneration on the basis of their work.  There will be two rates of wages: higher wage rate and lower wage rate.  A worker who will work up to a given standardized unit or beyond will be paid his/her remuneration at a higher rate.  On the other hand, a worker who will work less than the given standardized units will be paid his/her remuneration at a lower rate.

In order to operate this new unit, Mr. Garg established a separate ‘Waste Material Division’.  It consisted of four departments, such as, Purchase, sales, Production and Accounts.  Company required four managers to run these departments, of these, two managers were appointed from the existing business, by way of promotion; while the other two were selected out of the waiting list maintained by the company.

• Which form of organization structure is being adopted by the company?
• Identify and given the meaning of wage payment scheme adopted by the company to motivate the workers.
• What methods of recruitment have been adopted by the company?
• Identify these two values that Mr. Garg has been dedicating to the society by establishing this new unit.                                                                        (1 + 2 + 1 + 1)
• Divisional Organization Structure.
• Differential Wage System
• Development of backward area
• Rise in employment opportunities

Q. 17. Sahil the director of garments company, is planning to manufacture bags for the utilization of waste material of one of his garments unit.  He decided that his manufacturing unit will be get up in a rural area of Orissa where people have very less job opportunities and labour is available at very low rate.  He also thought of giving equal opportunities to men and women.  For this he selected S. Chatterjee, Indrajeet Kaur, Aslam and Sarabjeet as heads of Sales, Accounts, Purchase and Production departments.

• Identify and state the next two steps that Sahil has to follow in the staffing process after selecting the above heads.
• Also identify two values which Sahil wants to communicate to the society by setting up this manufacturing unit.                                                           (5 marks)
• The next two steps that Sahil has to follow in the staffing process are:
• Placement and Orientation
• Training and development
• Values which Sahil wants to communicate to the society are:
• Development of backward areas
• Providing job opportunities in rural areas
• Optimum utilization of resources
• Secularism.

Q. 18. The workers of ‘Gargya Ltd.’ are unable to work on new computerized machines imported by the company to fulfil the increased demand.  Therefore, the workers are seeking extra guidance from the supervisor and the supervisor iis 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.                                                                                                            (4 marks)

Ans.  Training of employees / Vestibule training / On the job training.

Q. 19. Anushka is doing a course in fashion designing form an institute of repute.  As a part of the course, she has been asked to take on-the-job training in an export house for a fortnight in order to gain an insight about various practical aspects related to designing.  Anushka, through the references from her senior, joins an export house owned by an upcoming designer, Nandita.

• Name and explain the type of training which Anushka has been asked to undertake.
• Explain briefly any one method for providing off-the-job training.
• Internship Training
• Vestibule training.

Q. 20. Which source of external recruitment is deal for a manufacturing organization?  Why?

Ans.  Advertisement, because it has wide choice to recruit and select most of the senior position of industry and commerce.  More information about the organization and job can be given in the advertisement.

Q. 21. Name the methods of training:

• The trainee learns under the guidance of a master worker.
• Trainees learn on the equipments they will be using, but training is conducted away from the actual work floor.
• Trainees work in some factory or office to acquire practical knowledge and skills along with regular studies.                                                                                     (3 marks)
• Internship training

Q. 22. A company is manufacturing paper plates and bowls.  It produces 1,00,000 plates and bowls each day.  Due to local festival it got an urgent order of extra 50,000 plates and bowls per day.

• Name the source of recruitment of labour the company needs to fulfill its order.
• Explain any two merits of this method.                                                          (3 marks)
• Direct recruitment of casual or ‘Badli’ workers (external source of recruitment).
• Wider choice: A notice can be placed on the notice board of the enterprise specifying the details of the jobs available.  A large number of job-seekers assemble outside the premises of the organization.  Selection is done on the spot.
• Competitive spirit: The existing workers will have to compete with the outsiders.

Q. 23. Your school has some vacancies of teachers.  The eligible staff has been promoted to half of the posts.  Suggest any three ways through which right type of people may be invited to fill up rest of the vacancies.                                                                                   (3 marks)

Ans.  The following external sources of recruitment will suit the purpose:

• Advertisements
• Employment Exchange
• Recommendations of existing staff.

Q. 24. What kind of tests will primarily be used while selecting these people in an organization?  Give reason.

• An interior decorator
• A computer operator
• A public dealing officer
• A school teacher                                                                                             (4 marks)

Ans.  The type of tests primarily to be used for selection are the following:

• Interest tests as these tests are used to know the pattern of interest or involvement of a person.
• Trade tests as these tests measure the existing skills of the individuals.
• Personality tests as these provide clues to a person’s emotions, reactions, maturity and value system, etc.
• Intelligence tests as these tests are indicators of a person’s learning ability or ability to make decisions and judgements.

Q. 25. Ramesh is working under the guidance of Harsh, a carpenter for the last three years to learn the different skills of this job.  Name the method of training Ramesh is undergoing.                                                                         (1 mark)

Ans.  Apprenticeship training

Q. 26.  The workers of a factory remain idle because of lack of knowledge of hi-tech machines.  Frequent visit of engineer is made which causes high overhead charges.  Suggest the method of training that should be given to the employees.  Explain.   (3 marks)

Ans.  Workers are needed to be given appropriate training to learn the use of hi-tech and sophisticated machines.  The suitable method of training in the case is vestibule training .   it is an off-the-job method of training in which employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.   Actual work environments re created in a classroom and employees use the same materials, files and equipment.

Q. 27. Identify and explain the following:

• It is a managerial decision-making process as to predict which job applicants will be successful if hired.
• It is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in job.
• It is the process of choosing from among the candidates from within the organization on from the outside, the most suitable person for the current position or for the future position.                                                                                                   (3 marks)

Ans.  Selection is the process being referred to in all the three statements.

It is the process of identifying and choosing the best person out of a number of prospective candidates for the job.  Selection process serves two important purposes:

• It ensures that the organization gets the best among the available.

It it enhances the self-esteem and prestige of those selected.

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Question 1:

What is meant by staffing?

Staffing is the process of filling job vacancies and retaining the employees recruited. The primary objective of staffing in an organisation is to fulfill its human resource requirements.   

Page No 170:

Question 2:.

State the two important sources of recruitment.

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.

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 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 3:

The workers of a factory are unable to work on new machines and always demand for help of supervisor. The Supervisor is overburdened with their frequent calls. Suggest the remedy.

The workers can be provided training with regard to the use of machines. Training refers to the process of increasing the employees’ capabilities and skills required for performance of their job. It would help the employees develop the skills required for the use of machinery and perform their task in a better manner. Training would help both the supervisor as well as the employees in the following manner. 1. With training the wastages of time as well as money would be reduced, thereby ensuring optimal utilisation of resources. 2. The burden of supervisor would be reduced. 3. Training would prepare the employees to face new challenges and enable them to respond to various situations effectively. 4. It would make the employees more adept efficient in handling machines and thereby, make them less prone to accidents.

Question 4:

The quality of Production is not as per standards. On investigation it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the quality of production to meet the standards? (training).

The workers can be provided on-the-job training such as apprenticeship training . The employees can be put under a master worker who would guide them in the proper use of the machinery. The employees can work under the master worker for a pre-defined amount of time and then gradually move to do the task themselves under the supervision of the master workers. Once the employees complete the training they would be able to work with greater accuracy and efficiency.

Question 5:

The workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit of engineer is made which causes high overhead charges. How can this problem be removed.

The above mentioned problem can be removed by providing off-the-job training to the workers. In this regard, vestibule training can be provided to the workers since the machines are hi-tech and sophisticated. The vestibule training will help in reducing the frequent visit of engineer and save the high overhead charges as in this type of training, dummy models of real working environment are created in classrooms outside the workplace. The trainees are made to work on the dummy machines and equipment, and only when they acquire adequate expertise in their use they are shifted to the actual workplace.

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

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.

An organisation provides security services. It requires such candidates who are reliable and don’t leak out the secrets of their clients. What step should be incorporated in selection process?

As a part of the selection process, selection tests can be conducted. One of the important tests with regard to the given situation is personality test . Such tests are developed to test the overall personality of the individual and get some information with regard to his or her nature, state of mind, maturity level, reactions, etc.

A company is manufacturing paper plates and bowls. It produces 1,00,000 plates and bowls each day. Due to local festival, it got an urgent order of extra 50,000 plates and bowls. Explain the method of recruitment that the company should adopt in the given circumstances to meet the order.

In the given scenario, company should approach labour contractors. This is because the production of paper plates and bowls require low skilled workers or labourers which can be fulfilled by labour contractors. Labour contractors maintain a close contact with labourers and other workers and make the right number of workers available at short notice.

Distinguish between training and development.

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 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. 

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

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. On one hand, the time spent in the whole recruitment and selection process is diminished to a large extent through internal recruitment. On the other hand, it lowers the cost by saving the expenditure on advertisement and other related processes. Along with this, the money spent on training of the new employees is also curtailed. Thus, in contrast to other sources, the internal sources of recruitment are more economical in nature.

Question 6:

No organisation can be successful unless it fills and keeps the various positions filled with the right kind of people for the right job.' Elucidate

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 under-utilisation of manpower. In addition, it avoids interruption in 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 self-confidence and job-satisfaction. It encourages them to work diligently and give their best to the organisation.

Page No 171:

'Human resource management includes many specialized activities and duties.' Explain.

Human Resource Management is a management function that is related to development and management of human element of an organisation.  It involves such functions as determining the requirement of personnel, recruiting personnel, training and developing them, working towards the overall welfare of the employees and handling their complaints and grievances.  It includes many specialised activities and duties which the human personnel has to perform. Some of them are:

• Human Resource Planning
• Recruitment (or searching qualified people)
• Analysing Job and collecting related information for preparing Job Description
• Training and Development of Employees
• Performance Appraisal
• Maintaining Labour relations and Union Management relations
• Handling grievances and complaints by employees
• Providing for social security and welfare of employees
• Defending company in lawsuits and avoid legal complications

Explain the procedure for selection of employees.

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.

(i) Screening : To begin with, it is necessary to eliminate those candidates who do not fulfill the basic criteria and qualification required for the job. This is done through preliminary screening by examining the information provided in the application forms. These forms may be in the form of online application or paper applications. Along with this, preliminary interviews can also be conducted to bring out the facts which are not written in the application forms and thereby, help in rejecting the misfits.

(ii) Test : Test is a mechanism that helps in judging certain characteristics of the aspirants. These characteristics can be regarding skills, knowledge, intelligence, etc. Various forms of testing are Intelligence test, Aptitude test, Personality test, Trade test and Interest test. They assess the individuals on different platforms and find out the suitable candidates for further selection process. For example, personality tests judge the candidate for characteristics such as maturity level, emotional control, etc. Similarly, trade test examine the skill and knowledge of the individual. 

(iii) Personal Interview : Personal interviews are an integral part of selection process that includes conversation of the candidates with the managers. Herein, in-depth conversations are conducted to judge the suitability of the individual for the job. Sometimes, the individual may also seek information regarding the organisation in such interviews.

(iv) Background Checks : Once the individuals pass through the interviews, some organisations ask for references of other persons such as previous employers, other known persons. From these references the organisation aims at verifying the information provided by the candidate. Moreover, these references also act as a source of additional information of the candidate. 

(v) Selection Decision : After the tests and interviews are completed, the final selection is done. The appropriate candidates are chosen by the concerned managers.

(vi) Medical Examination : Few organisations emphasise on conducting a medical examination to check the health of the candidates. The job offer is given after they are declared fit by a medical practitioner.

(vii) Job Offer : Next step is offering the job letter to the selected applicants. It refers to an appointment letter given by the organisation to confirm that the individual has been selected. Such letter generally comprises of such information as date of joining and the time of reporting.

(viii) Employment Contract : Once the job letter is given, the candidates have to fill-up some forms that are necessary for the future references. One such form is attestation form that holds information about the candidates which are attested by him/her. Another document is the contract of employment. It comprises of details such as salary, date and terms of joining, leave rules, working hours, allowances, etc.

What are the advantages of training to the individual and to the organisation?

Training is an important aspect of any organisation. It aims at building the skills and abilities of the individuals to perform a job. Training is an essential part of the job which attempts at improving the aptitude and knowledge of a person as per the job requirement. With the ever changing business environment, the complexity of the jobs has increased. Thereby, training has become all the more essential. The following are the highlighted benefits of training to the employee and the organisation.

Benefits to the Employee

(i) Better Career Opportunities : Training enhances the skill and knowledge of the employees and thereby, helps in improving their career prospects. 

(ii) Earn More : By helping the individual to learn more it assist them to earn more. Training enhances the individuals understanding and knowledge. Thereby, it improves their efficiency and performance. As a result, it gives them a chance to earn more.

(iii) Less Accident Prone : Training attempts to make the employees more adept and efficient in handling the machines. Jobs that require the employees to work with complex machines and in more accident-prone areas need to emphasise strongly on training and development, as it helps them in taking precautionary actions. Thus, it makes the employee less prone to accidents.

(iv) Self-Confidence : Development and training direct the individuals to work more efficiently that in turn builds up required morale within the individuals. It increases their self-confidence and self-reliance thereby, contributing to higher job-satisfaction.

Benefits to the Organisation

(i) Less Wastage : Training is a concept that involves systematic learning of work. It is a more efficient way of learning than any hit and trial method. This leads to less wastage of time and money. Thereby, it helps in optimum utilisation of resources.

(ii) Higher Profits : By developing the individuals and making them more efficient, training enhances their productivity in work. Due to increase in both qualitative and quantitative productivity, the profits of the company rise. 

(iii) Managerial Efficiency : Training prepares the employees to face new challenges in different situations. This helps them in building effective responses to various situations. Training also equips the future managers to take precautionary step in case of emergency.

(iv) Reduced Absenteeism : Effective training helps in boosting the morale of the employees. Thereby, it helps in reducing the rate of absenteeism and employee turnover. 

Kalu Consultants have launched www.naukaripao.com exclusively for senior management professionals. The portal lists out senior level jobs and ensures that the job is genuine through rigorous screening process.

a. State the source of recruitment highlighted in the case above.

a. www.naukaripao.com is an online website which serves as a  platform commonly visited by both job seekers and job providers to get the desired job or the people respectively. This source of recruitment is called Web Publishing.  b. Benefits of Web Publishing are:

• Saves Time and energy: The resumes are screened on the website according to the Job title which saves time and energy of calling out prospective employees and then screening them. The interactions are real-time between the job seeker and the company.
• Wider Reach: Candidates from across the globe can be hired with the help of online recruitment.
• Branding opportunities for companies: Information about the company is uploaded on the website which provides an opportunity to improve the name in the market.
• Cost-effective technique: It not only shortens the hiring process but also filters the right person for the right job, thus saving heavy cost of hiring.

A company, Xylo limited, is setting up a new plant in India for manufacturing auto components. India is a highly competitive and cost effective production base in this sector. Many reputed car manufacturers source their auto components from here. Xylo limited is planning to capture about 40% of the market share in India and also export to the tune of at least ₹ 50 crores in about 2 years of its planned operations. To achieve these targets it requires a highly trained and motivated work force. You have been retained by the company to advise it in this matter. While giving answers keep in mind the sector the company is operating. Questions: a. Outline the process of staffing the company should follow. b. Which sources of recruitment the company should rely upon. Give reasons for your recommendation. c. Outline the process of selection the company should follow with reasons.

1. The process of staffing that the company should follow is as follows. i. Identify and estimate the number and the kind of personnel required for the setup. ii. Look for suitable candidates to fill the job vacancies and persuade them to apply for the same. iii. Choose the right candidate through a rigorous selection process. iv. Make the selected employees comfortable and familiar with the working environment. v. Train the employees as per the requirements of the job. vi. Assess the performance of the employees against the predetermined standards and provide feedback. vii. Place the employees who are doing well at a higher level in the hierarchy and position. viii. Provide suitable compensation to the employees. 2. The company should rely upon external sources of recruitment . As the company is setting up a new plant in a new region, candidates from the local area would be more suitable as they would be familiar with the working conditions, problems faced, etc. in the local region. This would be in favour of the organisation. 3. The following selection process would be used. i. As a first step screen the candidates and eliminate those who do not fulfill the basic criteria and qualifications as per the job requirements. ii. Judge the candidate on different criteria such as aptitude test, intelligence test, and personality test. iii. Conduct a personal interview involving a direct conversation between the manager and the candidate which would further help in judging the overall suitability of the employee according to the job requirement. iv. Conduct a background check of the candidate taking references from a person known to the candidate, previous employers, etc. v. If the candidate is found suitable provide a job offer confirming that he/she has been selected. vi. Finally, provide an employment contract mentioning the terms and conditions of the employment.  

A major insurance company handled all recruiting, screening and training processes for data entry/customer service representatives. Their competitor was attracting most of the qualified, potential employees in their market. Recruiting was made even more difficult by the strong economy and the ‘jobseeker’s market.’ This resulted in the client having to choose from candidates who had the ‘soft’ skills needed for the job, but lacked the proper ‘hard’ skills and training. Questions a. As an HR manager what problems do you see in the company? b. How do you think it can be resolved and what would be its impact on the company?

a. The following problems are faced by the company.

Page No 172:

Question 7:.

Ms. Jayshree recently completed her Post Graduate Diploma in Human Resource Management. A few months from now a large steel manufacturing company appointed her as its human resource manager. As of now, the company employs 800 persons and has an expansion plan in hand which may require another 200 persons for various types of additional requirements. Ms. Jayshree has been given complete charge of the company’s Human Resource Department. Questions 1. Point out, what functions is she supposed to perform? 2. What problems do you foresee in her job? 3. What steps is she going to take to perform her job efficiently? 4. How significant is her role in the organisation?

1. As a human resource manger the main function that she would be performing is the staffing function . She must ensure that according to the expansion plan of the organisation, positions are filled with qualified and suitable candidates and that the positions remain filled. Subsequently she must ensure that the candidates are trained properly and remain motivated. It is her role to ensure that the individual goals of the employees are in harmony with the organisational goals. The functions of Ms. Jayshree can be summarised as follows. i. Recruiting the qualified candidates ii. Preparing job descriptions iii. Preparing a compensation plans and incentive plans iv. Training the employees as per the job requirements v. Maintaining harmonious relations with the employees vi. Working towards social security and welfare of the employees vii. Defending the company in case of any law suits and legal complications 2. The following can be some of the problems that Ms. Jayshree might face. i. Her job requires her to perform many specialised functions simultaneously. ii. Selecting the right candidates suitable for the jobs is a rigorous process. iii. Identifying the right source from where the candidates can be recruited is a challenge. iv. Arranging for training the personnel in the skills required as per the job. 3. The following steps must be taken to perform the job efficiently. i. A proper staffing plan must be formulated so as to estimate the present as well as future human resource requirements. ii. The qualifications required for various jobs must be pre-decided. iii. An assessment test must be developed to screen the potential candidates. iv. The job should be advertised well so as to attract potential candidates. v. A proper selection test and interview must be conducted. 4. Her job is very significant in the organisation. It is very important to ensure that the right and the suitable candidates are selected for the job. Wrong selection of the candidates can badly affect the performance and efficiency in the organisation. Moreover, as human behaviour is complicated it becomes all the more complex to select the right candidate as per the job requirements. The following points justify the importance of human resource management. i. Recruiting the right and competent personnel, thereby, maintaining performance and efficiency ii. Ensuring growth and survival in the organisation through proper planning for managers iii. Maintaining the morale of the employees through regular assessment and incentive programmes iv. Helps in optimum and proper utilisation of resources

View NCERT Solutions for all chapters of Class 15

Case Study- Staffing

CASE STUDIES- STAFFING

Welcome to Study Research. Your search for easy and free notes ends here. We bring you another case study of the chapter – STAFFING. This is considered to be an important case study for Business Study CBSE 10+2 Students.

Whats more its written in Question and Answers Form!

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Q1; “Our assets walk out of the door each morning. We have to make sure that they come back the next morning” These are the words of Narayana Murthy, CEO , Infosys. At a time when organizations are debating the strategic importance of their human resources , Infosys a consulting and software services organization, includes to human resources on its balance sheet to affirm their asset value. The raitionale for this is as follows;  “The long term success of a company is usually examined on certain financial and non financial parameters that challenge the usefulness of evaluating corporate success solely on traditional measures. Human resources represents the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organization”

In the above case Mr. Narayan Murthy is giving importance to one of the function of management. Identify and eplain the importance of  that function.

ANSWER; Staffing , Importance of staffing

Q2; Mr. Aryan CEO pf  Arya Ltd. Is interested in hiring people from outside .  For casual vacancies of unskilled or semi skilled jobs , a notice is placed on the enterprise specifying the details of the jobs available. He is  also planning to call some potential employees out of the database of unsolicited applications in their offices For technical , professional and managerial jobs, He is planning to hire young blood directly from universities, Vocational schools and management institutes.

• Identify Aspect of Staffing Performed by Aryan.
• Identify the different sources used by Aryan in the above case study.
• Explain the merits of above source.

Q3; Staffers across many IT companies have won themselves ipods or Asian holidays, motorbikes or even a Maruti Swift. Clearly , Employee referrals or buddy recruitments are increasingly becoming big ticket incentives with staffers  enjoying freebies along with hefty bonuses.

Explain the source of recruitment used by IT companies in the above case.

Q4; Several Companies are offering bonuses and increments on a quarterly basis to top teams. Atul a HR head said ,” Although it is a short term reaction , we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is upto six months, which is critical time lost for a company. Also replacement costs like hiring consultants would in any case add up to a huge expenses and a lot of pressure on HR,” said Atul  Rabur India HR chief.

Company are identifying people who may be tempted to leave and are devising ways of retaining such talent- offering learning and development facilities for freshers, sending them abroad on one year bonds etc.

• Identify the function of management performed in above case.
• Identify and explain the steps of above process which are highlighted in the above case.

Q5;” Water Water everywhere and not a drop to drink “ amplifies the fact that despite 2/3 rd of the earth being water ,  drinkable water is a screce commodity . This Staement  directly put emphasis on one of the function of management. Explain the importance of that function.

Q6; In Bharat Electricals  the workers of a factory remain idle because of lack of knowledge of hi- tech machines. Frequent visit of engineer is made which causes high overhead charges. The manager of Bharat Ltd. Called the meeting with employyes to know the cause and solution of the problem. Ultimately after discussion he got the solution to improve the performance which is also part of one of the function of management. What could be the way to remove the problem and why?

Vestibule training can be given to remove the problem because it’s a hi- tech machinery whose training should be given on dummy machineries because of their sophistication.

Q7; Afsa Security services Ltd. Provides security services . It requires such candidates who are reliable and don’t leak out the secrets of heir clients. What step should be incorporated in selection process?

Q8; Rishika Lighting ltd. Is manufacturing decorative lights . In normal days it produces 10,000 lights a day. Due to festival season it got an urgent order of extra 5,000 lightes . Advise how the company will fufill its order and which method of recruitment would you suggest.

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Class 12 Business Studies Case Study Questions

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In this article, we will discuss how to get CBSE class 12 Business Studies Case Study Questions from the myCBSEguide App and our Student Dashboard for free.

For the students appearing for class 12 board exams from the Commerce Stream, Business Studies is a core subject. Business Studies as a subject provides a way of perceiving and interacting with the business ecosystem . It well establishes the interdependence of business on various social, political, legal and economic forces and vice-versa. Business Studies is a purely theoretical and a relevantly easier subject for the Commerce students. Business Studies class 12 exam is a highly scoring subject and it facilitates the students to increase their percentile and excel in academics.

12 Business Studies Paper Design

The exam is divided into 2 parts:

• Part A generally contains questions from Principles and Functions of Management and carries 60 marks.
• Part B comprises questions from Business Finance and Marketing, it carries a total of 40 marks.

The syllabus of class 12 Business Studies comprises 12 chapters that are divided into 2 books

• Principles and Functions of Management
• Business Finance and Marketing

Business Studies Syllabus

CBSE has released the latest class 12 syllabus (2022-23) for Business Studies. 

Business Studies Case Study Questions

Case-based questions have always been an integral part of Business Studies class 12 question papers for the past many years. Students are required to focus more on case studies as they require the application of their knowledge of the key business concepts. In the year 2021-22 CBSE introduced a few changes in the question paper pattern to enhance and develop analytical and reasoning skills among students. Sanyam Bhardwaj, controller of examinations, CBSE quoted that case-based questions would be based on real-life situations encountered by the students.

The purpose was to drift from rote learning to competency and situation-based learning. He emphasized the fact that it was the need of the hour to move away from the old system and formulate new policies to enhance the critical reasoning skills of students. Introducing case study questions was a step toward achieving the goals of the National Education Policy (NEP) 2020.

What is a case study question? (Business Studies)

A case study in reference to Business Studies can be thought of as a real-world test of how the implementation works. It is predominantly a report of an organization’s implementation of something such as a practice, a product, a system, or a service. Case studies based on NCERT text form a substantial part of the Business Studies examination. Initially, they were confusing for both students and teachers but now there is a clarity that has made the question paper more student-friendly. A significant weightage has been given to case-based and application-based questions.

Critical and Analytical Thinking

These questions demand critical and analytical thinking on behalf of the students. The best part of these questions is that they provide conceptual hints and keys that point to the right answer. According to the new pattern implemented by CBSE, case-based questions would carry a significant weightage of more than 30% in the Business Studies question paper.

Case Study Passage

As part of these questions, the students would be provided with a comprehensive passage, based on which analytical questions will have to be answered by them. The students would be required to read the passage carefully before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 30%.

Types of Case Study questions in Business Studies

CBSE plans to increase the weightage of such questions in the following years, so as to enhance the intellectual and analytical abilities of the students. Case study questions would be based on various topics and chapters in Business Studies. It is expected from the students to have complete knowledge of the concepts in their syllabus.

They will have to let go of the shortcut techniques and get to read their textbooks with full concentration, especially for solving case-based questions in Business Studies for the passages given are generally lengthy and require an in-depth study. The best part of having these questions is that the question itself projects a hint of its solution.

The questions asked could be :

• Direct and simple-such questions can easily be solved as the answers are either there in the given passage or the student can solve it at ease by reading and analyzing the passage carefully.
• Indirect and application-based- These are the ones that would require the student to have complete knowledge of the topic and could be answered by application of the concepts. The answers to such questions are slightly tricky and not visible in the given passage, though the passage would highlight the concept on which the questions would be asked by CBSE.

Class 12 Business Studies Case Study

Case study questions asked by CBSE were stated to be quite challenging by many students. It prominently focuses on real and present scenarios of the business world. Though the exam, on the whole, was quite direct and its difficulty level was termed out to be moderate. Around 30% of the question paper consisted of case-based questions that required high-order thinking and analytical skills from the students.

Content of Case Study Questions

The concept of case-based questions is not new since CBSE has always included questions based on Higher Order Thinking Skills (HOTs) and case-based questions. Though now we will have an increased percentage of such questions in the question paper. The student has to keep in mind that the concept-based questions can be attempted only with the proper understanding of the business concepts.

Benefits Of Case-based Questions

Class 12 Business Studies syllabus comprises two books and CBSE can ask Case study questions from any of them. Students must prepare themselves thoroughly for both the books. They must practice class 12 Business Studies case-based questions from the various options available to them.

• Enhance the intellectual capabilities of the students.
• Provide a complete and deeper understanding of the subject.
• Inculcate analytical reasoning and temperament in students.
• Help students retain knowledge for longer periods of time.
• Would definitely help to discard the concept of rote learning and cramming without understanding the core of the subject.
• The questions would facilitate bringing out the much-awaited change in the prevalent system of education in India that hinders the strengthening of practical learning.

Some Case-Study Questions (Business Studies) Class 12

Here are some case study questions for CBSE class 12 Business Studies. If you wish to get more case study questions and other related study material, download the myCBSEguide App now. You can also access it through our Student Dashboard .

Business Studies Case Study 1

Read the following text and answer the questions: ABLEX Ltd. is a big and well-reputed company. The biggest challenge for the company is managing many employees at the same time. As the company has various departments like human resources, marketing, finance,etc., it is very necessary for the company to maintain unity in different departments. All the employees work hard for the organisation. Despite their different interest, they all perform various activities together so as to achieve the objectives of the company. The career of employees is shown a developmental path through proper training modules and job enrichment. Ajay is a manager who assigns all duties and responsibilities to his employees in the department. He uses all sources to develop proper communication with them and leaves no attempt to motivate them.

• It integrates Group Efforts
• It is a Continuous process
• It ensures Unity of Action
• It is Pervasive
• Top Level Management
• Middle-Level Management
• Lower Level Management
• Supervisory Level Management
• Economic objectives
• Social Objectives
• Organisational Objectives
• Personal Objectives

Answer Key:

• (c) It ensures unity of action
• (b) Middle-level management
• (c) Personal objectives
• (a) Directing

Business Studies Case Study 2

Read the following text and answer the question: Mohan works in a bulb manufacturing company. Each bulb that is manufactured is of standard size and quality. Further, if there is any unrequited type of bulb manufactured then its production is stopped. Last month when the company came to know that 10-watt bulbs were no more liked by customers, their production was stopped. He works in the purchasing department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Mohan knows this information should be given immediately to the production department before the assembling process starts. However, he finds that his company’s policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue until it reaches the desired person in the production department. Based on the passage answer the following questions:

• Method study
• Fatigue study
• Standardization and simplification
• None of these
• Scalar chain
• Departmentalization
• Division of Work
• None of the above
• Organization
• Authority and Responsibility
• All of these
• Division of work
• Scalar Chain
• (b) Fatigue study
• (a) Scalar chain
• (c) Gang plank
• (a) Division of work

Business Studies Case Study 3

Read the following passage carefully and answer the questions that follow: Two years ago Radhika completed her degree in food technology. She worked for some time in a company manufacturing chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months’ credit form farmers cultivating organic crops only. She also decided to follow the steps required for the marketing of the products through her own outlets. She appointed Rakesh as a production manager who decides the exact manner in which the production activities are to be carried out. Rakesh also prepared a statement showing the number of workers that will be required in the factory throughout the year. Radhika informed Mohan about her sales target for different products, area wise for the forthcoming quarter. While working on the production table a penalty of 100 per day for not wearing the caps, gloves and apron was announced.

• Standing Plan
• (a) Objectives
• (c) Procedure
• (b) Programme

Tips to Solve Case Study Questions in Business Studies

Let’s try to comprehend and solve case study questions of class 12 Business Studies. As mentioned earlier, the entire syllabus is divided into 2 books. It is expected from the students to rigorously follow the NCERT book as the language written is quite simple and crisp. The exam in spite of being totally theoretical is quite scoring.

• Read the passage in depth.
• Try to comprehend the situation and focus on the questions asked.
• Generally, the passage given in Business Studies is lengthy but the solutions are brief and simple.
• Can follow a reversal pattern, i.e read the questions before and then search for the answers. You will save time.
• Answer briefly and precisely.
• Focus on solidifying key Business Studies fundamentals for acing any case study. If your concepts are clear, you will hardly face any difficulty in answering them.
• While answering the case study, pick the keywords or any keyline based on which you are withdrawing your conclusion. You need to highlight the reason for your answer.

These simple points if kept in mind will definitely help the student to fetch good marks in case study-based questions in class 12 Business Studies.

WORK HARD, HAVE FUN, AND MAKE HISTORY!

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