Previous Year: Long Questions with Anwers - Staffing Commerce Notes | EduRev

Business Studies (BST) Class 12

Commerce : Previous Year: Long Questions with Anwers - Staffing Commerce Notes | EduRev

The document Previous Year: Long Questions with Anwers - Staffing Commerce Notes | EduRev is a part of the Commerce Course Business Studies (BST) Class 12.
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Q. 1. The IT major GIPRA is terminating the employment of its senior managers if, after evaluating their performance against pre-determined standards, it is found lacking. With this disruption, analysts say a large portion of the employees may become irrelevant unless they learn new skills and apply the knowledge to work on emerging technologies. GIPRA is ready to facilitate employee learning, through its in-house centres.
(i) Name the function of management performed by GIPRA to maintain a satisfactory work force.
(ii) Identify and explain the two steps in the process of the function of management discussed above.
(iii) Also state any two steps of the function of management discussed, that the firm had to perform before performing the above steps.[SQP 2018]

Ans. (i) The function of management being performed by GIPRA to maintain a satisfactory work force is Staffing.
(ii) The two steps of staffing discussed above are:
(a) Training and development : The organisation should facilitate employee learning by having either in-house training centres or have forged alliances with training and educational institutes to ensure continuing learning of their employees. The organisations also benefit.
(b) Performance Appraisal : All organisations have some formal or informal means of appraising their employee’s performance. Performance Appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. The performance appraisal process includes defining the job, appraising performance, and providing feedback.
(iii) Following are the two steps in the process of staffing that the management had to perform before performing the above steps:
(a) Estimating manpower requirements, which involves not merely knowing how many persons the company needs but also what type.
(b) Recruitment is defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
(c) Selection is the process of choosing from among the pool of the prospective candidates developed at the stage of recruitment.
(d) Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation. Placement refers to the employee occupying the position or post which the person has been selected.

Q. 2. What is meant by staffing? State any five points of its importance.[Outside Delhi Comptt. Set I, II, III 2012; [Delhi Comptt. 2011]
OR
Define ‘Staffing’ as a function of management and state its importance.[Delhi Comptt. 2011]
OR

Explain ‘Staffing’ as a function of management. Also explain by giving any four reasons, why proper staffing is required in an organisation.[Outside Delhi Set I 2010]
Ans.
Staffing has been described as the management function of filling and keeping filled the positions in the organisation structure.
Importance of staffing :
(i) Competent personnel : Staffing helps in discovering and obtaining competent personnel for various jobs. To prevent the shortage of technically skilled personnel, staffing is necessary.
(ii) Better performance : Staffing ensures better performance by putting right person in the right job.
(iii) Survival and growth : It ensures survival and growth of the enterprise through succession planning for the managers.
(iv) Optimum utilisation of the resources : Optimum utilisation of the resources requires efficient human resources. Staffing avoids over manning and thus high labour costs. It also avoids disruption of work by indicating shortage of the personnel in advance.
(v) Improves job satisfaction : It improves job satisfaction and morale of the employees through objective assessment and fair rewarding for their contribution.

Q. 3. State the merits of internal sources of recruitment.[Delhi Comptt. Set I 2014]
Ans.
Merits of internal sources of recruitment :
(i) Motivates employees as promotion at a higher level may lead to a chain of promotions at lower levels as well in the organisation.
(ii) Simplifies the process of selection as the candidates are already known to the organisation.
(iii) No need for induction training as the employees are already familiar with the organisation.
(iv) Helps in adjustment of surplus staff in those departments where there is shortage of staff.
(v) Economical sources of recruitment.

Q. 4. Despite internal sources of recruitment being economical, why do companies not always use this source? State any five reasons.[SQP 2014, 2013]
Ans.
The companies do not always use internal source of recruitment despite being economical because of the following reasons :
(i) It is an incomplete source as no organisation can fill all its vacancies from internal sources.
(ii) The employees may become lethargic if they are sure of time bound promotions.
(iii) Spirit of competition among the employees may be hampered.
(iv) Frequent transfers of employees may often reduce the productivity of an organisation.
(v) Complete reliance on internal recruitment involves danger of ‘inbreeding’ by stopping ‘infusion of new blood’ into the organisation.
(vi) A new enterprise cannot use internal source of recruitment.
(vii) There is limited choice of candidates when the vacancies are to be filled from internal source of recruitment.

Q. 5.Explain any four external sources of recruitment. [SQP 2013]
Ans.External sources of recruitment :
(i) Recommendation of Employees : Many firms encourage their employees to recommend the names of their relatives and friends for employment. Such applicants are likely to be good employees because their background is sufficiently known.
(ii) Labour Contractors : Labour contractors keep in touch with labourers in the villages and bring them to the places where they are needed. On payment of commission, they are ready to supply required number of workers.
(iii) Placement Agencies and Management Consultants : Management consultancy firms help organisations to recruit technical, professional and managerial persons. They specialise in middle level and top level executive placements. They maintain the data of persons with different qualifications and skills and advertise the jobs on behalf of their clients.
(iv) Campus Recruitment : Universities, colleges, institutes of management and technology, etc., provide technicians, engineers, chemists, accountants, etc. Many big organisations maintain a close link with the universities, technical and management institutes to recruit qualified personnel for jobs. This is referred to as campus recruitment.
(v) Advertisement : Advertisement in newspapers and journals is a common method of encouraging people to apply for the jobs. The main advantage of this method is that sufficient information about the organisation and the job can be given to allow self-screening by the applicants. It attracts a large number of candidates.
(vi) Employment Exchange : Employment exchange are government run organisation that registers the names of job seekers to maintain records of their qualifications, experiences, etc. Employers inform the exchanges about the vacancies. These exchanges refer the names of people possessing required qualities and skills to the employers.

Q. 6. Define Recruitment. State any five merits of internal sources of recruitment.[Delhi Comptt. Set I, II, III 2012]
Ans. 
“Recruitment is the process of searching for prospective candidates and stimulating them to apply for jobs in the organisation.” Five merits of internal sources of recruitment are :
(i) Familiarity with the policies : Internal sources of recruitment are considered as best because the internal candidates are well familiar with the policies of the enterprise. Management does not have to exert in familiarising them with the rules, policies, etc. of the company.
(ii) No need of references : The organisation knows the abilities and loyalties of its employees. It does not require anybody’s reference about their ability, integrity and moral character.
(iii) Economical : Recruitment from within the organisation is economical in the sense that employers do not have to spend on the advertisement, contractors, etc. Moreover, it also saves time required in administering various tests, etc.
(iv) Balancing of Staff : There may be some departments having ample staff and some others having shortage of staff. Transfers as internal source of recruitment help in solving the problem of overstaffing and understaffing in the different departments of the organisation.
(v) Enhances Employees’ Morale : Promotion within the organisation enhances employees’ morale. The policy of internal promotion makes them enthusiastic and optimistic. Promotions within organisation are positive morale builders.

Q. 7.State any five limitations of internal sources of recruitment.[Outside Delhi Comptt. Set I, II, III 2012]
Ans.
Limitations of internal sources of recruitment :
(i) When vacancies are filled through internal promotions, the scope for fresh talent is reduced.
(ii) The employees may become lethargic, if they are sure of time bound promotions.
(iii) The spirit of competition among the employees may hamper.
(iv) Frequent transfers of employees may reduce the overall productivity of the organisation.
(v) It may not be possible for an organisation to fill all vacancies from internal sources.

Q. 8. There were two vacancies for the post of Assistant Manager in ‘Gyan Electrics Private Ltd.’ ‘Parth,’ the Human Resources Manager identified one suitable candidate ‘Vishwas’ from within the organization and promoted him to the post of Assistant Manager. For another post, the Manager ‘Parth’ took help of a placement agency and selected ‘Saleem’. After six months, Parth observed that ‘Vishwas’ performance was much better than ‘Saleem’. Hence, ‘Parth’ decided that in future he will not make any appointment with the help of an outside source. Explain any four reasons on the basis of which ‘Parth’ would have taken the above decision.[Comptt. Delhi Set I, II, III 2018]
Ans.
Reasons on the basis of which ‘Parth’ would have taken the decision not to make appointment with the help of an outside source are :
(a) Internal sources are more reliable way of recruitment since the candidates are already known to the organisation whereas external sources.
(b) If internal source are used, there is no need for induction training as the employees are already familiar with the organisation.
(c) Internal sources help to improve the motivation, loyalty and satisfaction level of existing employees.
(d) Promotion at a higher level may lead to a chain of promotions at lower levels in the organisation.
(e) They simplify the process of selection as the candidates are already known to the organisation.
(f) They help in adjustment of surplus staff in those departments where there is shortage of staff.
(g) Filling of jobs internally is cheaper as compared to getting candidates from external sources.

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